Raising energy efficiency standards – responsibilities and assistance

Fiona HartProject Development Manager

National Energy Action (NEA)

Overview

NEA – who we areFuel poverty – causes and effectsIncreasing energy efficiencyCurrent legislation – HHSRSSupport for private sector landlordsGreen Deal and legislative changesQuestions and discussionFeed-back and further information

National Energy Action – who we are

National fuel poverty charityEstablished 1981Supporting households in fuel povertySupporting organisations that work with fuel poor

householdsCampaigning and working with governmentWorking with businesses and utility companiesResearch and demonstration projectswww.nea.org.uk

Fuel poverty in the private rented sector

- Causes Definition of fuel poverty“The inability to afford to heat the home adequately”. Households that need to spend more than 10% of their income

on fuel Children, young people, chronically sick, disabled, older people

and low income groups are most at riskPrivate rented sector specific causes ‘Hard to treat’ properties Investment rationale is driven by the market and regulations as

opposed to investment in own home Low income / vulnerable households Transient populationsExacerbated by: Rising fuel prices Recession and overall inflation Colder winters

Fuel poverty in the private rented sector

- Effects

Potential issues for the landlord Deterioration of the property Increased maintenance and repair costs Reduction in the asset value of the property Fuel arrears attached to property Rent arrears Reduction in re-let potential

Impact on tenant Cold, damp home Condensation and mould Difficulties paying fuel bills Health problems worsened

Increasing energy efficiency in the

private rented sector – prioritisation

35%WallsSavings: £130 - £160

25%

RoofSavings: £50 - £180

10% Windows Savings:Up to £165

15% Draughts Savings: £20 15%

FloorSavings: £20 - £70

Increasing energy efficiency in the

private rented sector – measures

Insulation Loft Cavity wall Solid wall Highly recommended where there is electric / oil heating

Heating Consider new efficient system where old / partial system or

frequent callouts for repairs Heating controls

Ventilation Extractor fans Trickle vents in windows

Advice to tenants

Increasing energy efficiency in the

private rented sector – tenants

Role of tenants Efficient use of heating and hot water systems Lifestyle factors that decrease potential condensation

All inclusive rents could result in high landlord fuel bills; these can be reduced through energy efficiency measures

Advice pack for tenants Heating control instructions Energy advice leaflet Advice on minimising condensation Instructions on engaging with energy companies: Sources of advice - Home Heat Helpline, CAB, Debt advice

agencies

Current legislation - HHSRS Housing Act 2004 Risk assessment tool to identify hazards For use by local authorities in private rented, owner

occupied and registered social landlord housing sectors Principle: Any residential property should provide a safe

and healthy environment for any potential occupier or visitor

Assessment: Scoring number & degree of hazards Banded as category 1 or 2 hazards

Excess cold Excess heat Damp and mould growth

Pollutants

Space (lack of) Security Lighting Noise

Hygiene / sanitation

Accidents (falls, fires etc)

Structural collapse

HHSRS – local authority role Scoring based on risk to most vulnerable

potential occupant Statutory duty to enforce where category 1

hazards are identified Enabled to address category 2 hazards Formal and informal approaches to enforcement Production of schedule of remedial works N.B. No heating/inadequate/unaffordable heating

can be assessed as a CAT 1 Excess Cold hazard

Support for Private Sector Landlords – CERT

Carbon Emissions Reduction Target Obligation on domestic energy suppliers to help

customers reduce carbon emissions Discounted loft, cavity and solid wall insulation Discounted renewable energy measures such as solar water

heating Priority and super priority groups can receive free measures Available until Autumn 2012 Opportunity: Suppliers are looking to the private rented sector to

identify priority and super priority customers eligible for free measures

Recommendation: Take advantage of this scheme while it is still available

Support for Private Sector Landlords – Warm Front

Government’s fuel poverty programme Heating and insulation measures Eligibility criteria: disability or income-related benefits and an

energy inefficient property Declining Warm Front measures can lead to Carillion

contacting your local authority and a HHSRS inspection being carried out

Recent changes: Small increase in overall budget New eligibility criteria April 2011 Programme will be phased out by 2013

Recommendation: Take advantage of this scheme while it is still available

Support for landlords - LESA

Landlords Energy Saving AllowanceTax allowance for cost of buying certain energy

saving itemsUp to £1,500 against tax - properties you rent out in

the UK and abroadClaimed for actual expenditureClaim when filling in tax return up to 1st April 2015Rules on apportionment and other restrictions may

applyContact local tax office and tax advisor

Green Deal Green Deal

Energy Act 2011 “Pay as you save” financial mechanismNo upfront cost for measures Costs recouped in instalments through electricity bill

ECO (Energy Company Obligation)Vulnerable (under-heating)Hard to treat Eligibility criteria to be defined

Operational and legal framework under development including disclosure, accreditation

… other future legislative changes

Mandatory minimum standards

April 2016 = “Reasonable” requests for energy efficiency improvement.

April 2018 = illegal to rent out F & G rated properties UNLESS landlord has carried out maximum package of measures under Green Deal/ECO.

Home Heat Helpline 0800 33 66 99

Citizens Advice Consumer Service08454 04 05 06

Energy Saving Advice Service

0300 123 1234

Warm Front 0800 316 2805

Useful contact numbers

NEA Newcastle Office

Fiona HartProject Development Manager

Fiona.hart@nea.org.uk

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