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
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 35% Walls Savings: £130 - £160 25% Roof Savings: £50 - £180 10% Windows Savings: Up to £165 15% Draughts Savings: £20 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: 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 coldExcess heatDamp and mould growth Pollutants Space (lack of)SecurityLightingNoise 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 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.
Home Heat Helpline Citizens Advice Consumer Service Energy Saving Advice Service Warm Front Useful contact numbers
NEA Newcastle Office Fiona Hart Project Development Manager Please complete a feed-back form