Mayor to encourage energy efficiency in the private rented sector

13 December 2012: The Mayor has today published a new ‘London Rental Standard’ where- the press release states – he “has called for the establishment of a new deal with landlords, letting agents and tenants based around a voluntary and transparent ‘London Rental Standard’ (LRS), which will be consulted on with the industry and launched next year by the GLA.”

Today’s publication, ‘The Mayor’s Housing Covenant: Making the private rented sector work for Londoners’, sets out the Mayor’s proposals for improving private renting for Londoners. Included in there are commitments that:

  • The Mayor has three principal objectives for improving the private rented sector (PRS) in London which includes promoting standards through improving the energy efficiency of the stock.
  • To do this the Mayor will work with government and energy providers to ensure that the Green Deal works for London’s PRS
  • The Mayor has also committed (para 2.3) to address fuel poverty and encourage more landlords to take advantage of energy efficiency programmes.

The report goes on to say (page 33) that:
Improving energy efficiency
In terms of energy efficiency the PRS tends to perform well compared with other tenures but there is still significant room for improvement. In 2010/11, the average SAP rating for private rented homes in London was 57.3, worse than in social housing but better than in owner occupied properties and better than the national average for the PRS. The latter is probably explained by the larger share of flats in London’s PRS compared with elsewhere (flats are generally more efficient than houses).

From 2016, landlords will not be able to unreasonably refuse requests from their tenants for consent to undertake energy efficiency improvements where they can be funded by the Green Deal, and from 2018 all private rented properties must be brought up a minimum efficiency standard.” The latter requires all private rented properties (domestic and non-domestic) should be brought up to a minimum energy efficiency standard rating, likely to be set at EPC rating “E”. Further information on DECC’s website here.

Appendix 1 of the document contains the draft London Rental Standard and the energy commitment goes no further than the rather disappointing standards set by Government in the Energy Act 2011 stating that “landlords must work towards compliance with duties imposed upon them by the Energy Act 2011, especially related to requests for energy efficiency improvements by tenants and in relation to low ratings in energy performance.” The Mayor should instead look to bringing in the recommendations on PRS energy efficiency made by a coalition of organisations during the passage of the 2011 Energy Bill.
Any  feedback on the contents of the Housing Covenant paper need to be sent to the GLA by 15 February 2013.

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