Challenges Faced by Private Renters in Energy Costs
Private renters have been more exposed than other tenures to increased energy costs in the two years since Russia’s invasion of Ukraine.
Energy Efficiency Disparities
- One in four private renters is in fuel poverty.
- 55% of private rented homes have an energy efficiency rating of band D or below, compared to 30% of social housing.
Health Impacts and Financial Burden
Poor energy efficiency leads to higher costs to keep homes warm, impacting health and causing indirect issues like condensation and mould. The estimated cost to the NHS is £1.1bn per year.
Regulation and Challenges in the Rental Market
The dynamics of the rental market pose challenges in providing energy-efficient homes for renters.
Regulatory Impact
Regulations have reduced the number of poorly rated homes, but fuel poverty rates have not significantly decreased. Higher energy efficiency standards are needed.
Challenges in Accessing Grants
Despite grants like the Energy Company Obligation scheme, uptake by private renters has been low due to lack of awareness and incentives.
Proposed Solutions for Energy Efficiency
Better incentives for landlords and tenants are crucial to reduce fuel poverty and improve energy efficiency.
Tenant Protection and Incentives
Tenants need protection from rent increases and eviction following energy-efficient improvements. Grants should not impact rent levels set by tribunals.
Compelling Landlords for Improvements
Landlords should be compelled to accept funded improvements to raise energy efficiency standards to band C.
Transforming Living Standards
Political choices can improve living conditions for private renters by redesigning incentives for landlords and tenants.