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Why "all stick, no carrot" is no way to improve energy efficiency

Written by: Maryanne Bowring 03/12/2021
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"All stick, no carrot" is no way to improve energy efficiency

The Government is right to urge landlords to improve the energy efficiency of rental homes, but its approach seems to be all stick and no carrot. This method is unhelpful, and landlords are understandably unimpressed. New research from The Mortgage Works, reported in Letting Agent Today, reveals that more than half of landlords have considered selling some or all of their properties because they feel unable to fund the required works specified by the government to meet future standards.

The Proposed Energy Efficiency Targets

Currently, legislation in England and Wales requires buy-to-let properties to have at least an EPC (Energy Performance Certificate) rating of E. However, the government plans to increase the required rating to C for all new tenancies by 2025 and existing ones by 2028. This is a significant challenge, and there’s little indication of new funding or financial incentives to help landlords achieve these targets. ARLA (The Association of Residential Letting Agents) has recently urged the government to be more realistic in its target setting. While net zero is a goal we should all work towards, expecting landlords to shoulder the burden without support is unreasonable. ARLA also highlighted the potential issues that could arise from over-regulation, especially as landlords are already contending with around 170 different rules and regulations. It's understandable that many may feel the pressure is becoming too much.

Impact on the Rental Market

Another newly published report highlights the negative impact on the rental market. According to flatshare site SpareRoom, which spoke with landlords about the decline in rental supply, 26% of landlords cited increased legislation as the biggest factor driving them out of the market. With fewer landlords willing or able to invest in rental properties, the availability of rental accommodation becomes increasingly scarce. This could further exacerbate the housing crisis and increase rents for tenants, ultimately making it harder for people to find affordable homes.

A Call for Balanced Approach

Clearly, the rental sector has a role to play in combating climate change, just as everyone does. But putting excessive pressure on landlords without offering realistic and attainable targets or financial incentives is not the answer. Instead, the government should consider offering carefully thought-out incentives and more achievable targets to bring landlords alongside them in their mission towards more sustainable housing. By doing so, we could see tangible results that benefit everyone — the environment, tenants, and landlords alike.

The Need for Financial Support and Incentives

Without proper financial support or incentives, landlords may find it difficult to meet the government’s new energy efficiency standards, potentially leading to a reduction in available rental properties and increasing market instability.

Striking a Balance for Sustainability

A balanced approach, combining realistic targets with meaningful incentives, is crucial to ensure landlords can effectively contribute to the energy efficiency goal while maintaining a healthy rental market.



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