UK Landlords call for bespoke financial package to support energy efficiency upgrades

Just five per cent of private rented households have received government help to fund energy efficiency measures despite having the greatest need.

The National Residential Landlords Association is now calling for a bespoke financial package to support the improvements that are needed. 

According to the English Housing Survey, a third of private rented sector housing was built before 1919. This is the hardest to treat and accounts for a larger proportion of the sector than for any other housing tenure. Across England’s entire housing stock, 84 per cent of properties built before 1919 had an energy rating or D or worse.

Data shows that 97 per cent of private rented properties with an energy rating of D or lower could reach C or better.

Despite this, just five per cent of private rented households across England have received any financial support under Government schemes to improve the energy efficiency of housing.

Ministers want all new private rented tenancies agreed from 1st April 2025 to be in properties with an energy performance rating of C or better. According to government figures, it would cost an average of over £7,500 to bring rental properties needing it to an energy rating of at least C.  

The National Residential Landlords Association is warning that this makes the Government’s ambitions to improve the energy efficiency of the rental housing stock a pipe dream when the average net annual rental income for a private landlord is less than £4,500.

Among the NRLA’s proposals is the development of a scrappage scheme to upgrade windows in private rented homes. A higher proportion of properties in the sector have no double glazing than any other tenure.

It is calling also for energy efficiency measures carried out by a landlord to be offset against tax as repair and maintenance, rather than as an improvement at sale against Capital Gains Tax. This would address anomalies including that whilst replacing a broken boiler is tax deductible, replacing one for a more energy efficient system is not.

Ben Beadle, Chief Executive of the National Residential Landlords Association, said: “We all want to see energy efficient rental homes. They cut bills for tenants, make homes more attractive to potential renters and help the country to achieve its net zero commitment."

“The Chancellor needs to develop a financial support package that works for landlords and tenants. This should especially be targeted at the hardest to treat properties where the cost of work will be prohibitive for landlords. In this way, he will also be doing the most to help the fuel poor.”

Find out more here. 

27 July 2021

Climate Action