According to figures released as part of the English Housing Survey, as many as one in ten buy to let homes in the private sector could be impossible to let in five years because they don’t meet minimum energy efficiency ratings.
Poor results for the private rental sector
Nearly 12% of homes in the private rental sector are currently rated F and G in the energy efficiency scale. Unfortunately, because of new laws passed by the government, landlords will not able to let out these properties after April 2018. The government has yet to decide whether the ban will come into effect on a set date or if tenancies in affected properties can continue until the end of the tenancy.
Causes of low energy efficiency
In most cases, the poor energy efficiency rating is as a result of no cavity wall insulation where wall cavities exist, or insufficient loft insulation. The figures are also a reflection of the fact that many buy to let homes in the private sector are older properties with no double-glazing.
Green Deal
The government has introduced the Green Deal scheme to try and encourage landlords and owner-occupiers to improve the energy efficiency of their homes. Landlords can borrow money to make essential energy efficiency improvements and the loan is repaid by supplements added to the property’s electricity bill. Since energy improvements should reduce the electricity bill, the cost of the work is effectively cancelled out.
Tenants can ask for improvements
As of 2016, landlords will have to make reasonable improvements to the energy efficiency of a property if their tenants ask for work to be carried out.
