Raising energy efficiency standards – responsibilities and assistance Fiona Hart

Project Development Manager National Energy Action (NEA)

Overview

  NEA – who we are Fuel poverty – causes and effects   Increasing energy efficiency Current legislation – HHSRS  Support for private sector landlords  Green Deal and legislative changes  Questions and discussion  Feed-back and further information

National Energy Action – who we are

 National fuel poverty charity  Established 1981  Supporting households in fuel poverty  Supporting organisations that work with fuel poor households  Campaigning and working with government  Working with businesses and utility companies  Research and demonstration projects  www.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 risk

Private 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 populations

Exacerbated 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 Roof Savings: £50 - £180

25%

Walls Savings: £130 - £160

35%

Draughts Savings: £20

15% 10%

Windows Savings: Up to £165

15%

Floor Savings: £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:

visitor Any residential property should provide a safe and healthy environment for any potential occupier or Assessment:  Scoring  number & degree of hazards  Banded as category 1 or 2 hazards Excess cold Excess heat Damp and mould growth Pollutants Noise Space (lack of) Hygiene / sanitation Security Lighting 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 Allowance

 Tax allowance for cost of buying certain energy saving items  Up to £1,500 against tax - properties you rent out in the UK and abroad  Claimed for actual expenditure  Claim when filling in tax return up to 1st April 2015  Rules on apportionment and other restrictions may apply  Contact local tax office and tax advisor

Green Deal



Green Deal

 Energy Act 2011  “Pay as you save” financial mechanism  No 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.

Useful contact numbers



Home Heat Helpline

0800 33 66 99 

Citizens Advice Consumer Service

08454 04 05 06 

Energy Saving Advice Service

0300 123 1234 

Warm Front

0800 316 2805

NEA Newcastle Office

Fiona Hart Project Development Manager [email protected]

Please complete a feed-back form