Posts with tag: rental property energy efficiency

MPs Discuss Energy Efficiency in Rental Properties

Published On: October 14, 2015 at 11:00 am

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The All Party Parliamentary Group (APPG) has launched an inquiry into the energy efficiency of private rental sector accommodation.

From 1st April 2018, all private rental properties must have a minimum energy performance rating of E on an Energy Performance Certificate (EPC).

MPs Discuss Energy Efficiency in Rental Properties

MPs Discuss Energy Efficiency in Rental Properties

Industry professionals are concerned that this will be difficult to achieve, as rental homes are typically older and therefore harder to improve than properties in other tenures.

The APPG’s inquiry follows the Government’s move to discontinue the Landlord Energy Savings Allowance, announced in the March Budget. This was initially launched to encourage landlords to improve the energy efficiencies of their properties, but it was not renewed due to low uptake.

Additionally, the Government has ended funding for the Green Deal and earlier this year, the European Court of Justice rules that the reduced 5% rate of VAT paid on energy efficiency products will no longer be applied, except when it is used for social rental housing.

The APPG will consider the effect of recent policy changes on energy efficiency in the private rental sector and recommend new policies to be developed to support the sector and the Government’s general plans to improve household energy efficiency.

Chairman of the APPG, Oliver Colvile, MP for Plymouth Sutton and Devonport, says: “With the winter months just around the corner, improving the energy efficiency of rented housing is a crucial issue.

“With the private rented market under more scrutiny than ever, landlords have a challenge to meet the new energy efficiency requirements of their properties.

“The group’s inquiry will look to develop new ideas that will support landlords to meet their new target; save tenants money on their bills and help improve standards. I would encourage all those with an interest to submit their suggestions.”1

Those with any ideas are invited to provide written submissions of no more than 1,500 words to Ed Jacobs at admin@prs-group.org.uk by 23rd October 2015.

1 https://www.landlordtoday.co.uk/breaking-news/2015/10/mps-to-probe-rental-energy-efficiency

End of Green Deal Could Leave Landlords with Problems

End of Green Deal Could Leave Landlords with Problems

End of Green Deal Could Leave Landlords with Problems

Taxpayer funding to the Green Deal Finance Company has caused the Green Deal to collapse, causing redundancies and closures of some companies.

The Secretary of State for Energy and Climate, Amber Rudd, says low usage of the Green Deal has led to its end.

Existing deals and loans will be upheld, but there will be no new Green Deal loans.

Rudd says that the Government will work with the building industry and consumer groups on a new approach, which will offer better value for money and support the aim of insulating 1m more homes over the next five years.

The breakdown of the Green Deal arrives after criticism that it was confusing, difficult to understand, the loans were expensive and the scheme was constantly changing.

However, its end could leave private landlords with problems if they need to upgrade the energy efficiency of their rental properties.

By 1st April 2018, all rental properties must have an Energy Performance Certificate (EPC) rating of E or above.

Additionally, alongside the collapse of the Green Deal, the EU has ruled that full-rate VAT must be charged on energy saving materials and work, such as insulation.

The Landlord Energy Saving Allowance has also been stopped.

The Residential Landlords Association (RLA) is hoping for clarification from the Government as to what support landlords will receive.

RLA Hopes to Meet Ministers Regarding Euro Tax Rule Change

The Residential Landlords Association (RLA) is hoping to meet with ministers following a European Court of Justice ruling that will make it more expensive for landlords to make their rental properties energy efficient.

RLA Hopes to Meet Ministers Regarding Euro Tax Rule Change

RLA Hopes to Meet Ministers Regarding Euro Tax Rule Change

On Thursday, the Court ruled that the lower 5% VAT rate charged on energy efficiency products breached EU law and can only be used for social housing. All other housing tenures, including private rental homes, must pay the higher 20% VAT rate.

This news arrives just months after the Government ended the Landlord Energy Savings Allowance, which helped landlords improve the energy efficiency of their rental properties. 20 groups representing landlords, tenants and energy efficiency organisations actively opposed the abolishment.

Government data reveals that 32% of all private rental property was built prior to 1919, meaning it is some of the most difficult housing to insulate. Only 24% of homes in the sector have cavity wall insulation and just 25% have 200mm or more loft insulation.

The RLA has urged the minister responsible for energy efficiency, Lord Bourne, to meet with them immediately to determine how landlords can be supported to meet the energy efficiency requirements of the private rental sector.

Alan Ward, the RLA Chairman, says: “The RLA fully supports efforts to improve the energy efficiency of the country’s housing stock. The judgment of the European Court of Justice, however, jeopardises efforts to do so.

“Private rented housing faces some of the most difficult challenges in improving its energy efficiency given the age of the stock and needs greater not less support to meet the Government’s ambitions on home insulation.

“We are calling on ministers to give serious consideration about a way forward that supports landlords and tenants alike.”1 

1 http://www.landlordtoday.co.uk/breaking-news/2015/6/euro-rule-tax-blow-to-landlords