Majority of BTL owners want higher green ratings: Social Market Foundation Mortgage Finance Gazette

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Almost four-fifths of landlords favour raising energy efficiency standards on rental properties, according to the Social Market Foundation.  

The thinktank says 79% of buy-to-let owners believe they should be subject to stricter energy efficiency regulations,   

It adds that this suggests the Prime Minister was wrong to u-turn on the government’s policy to impose higher standards on the private rented sector.  

In September, Rishi Sunak scrapped plans to require all landlords to upgrade their properties to a minimum energy performance certificate rating of C by 2028, citing the need to protect tenants from unfair price hikes in rent due to the cost of renovations.  

This leaves landlords free to lease their properties with an energy performance certificate rating of E.   

“The private rented sector is the worst performing tenure for energy efficiency in the UK,” the thinktank points out.  

It says: “Some landlords that spoke to the Social Market Foundation expressed frustration at the uncertainty created by the government’s perceived indecisiveness are were worried that the goalposts might be moved once more.   

“Others were upset at having spent substantial sums of money on improving their houses, only to discover that was unnecessary.”  

The body urges to government to provide economic incentives for landlords, such as making the costs of insulating a property tax deductible from rental income.  

It also says that local authorities have a key role to play in increasing the current low trust levels among landlords and owner-occupiers share in the insulation industry.  

It says local authorities should become, “one-stop shops for advice and information, as well as for also publicising success stories”.  

However, these findings go against several studies that show landlords agree with the government backing down on its energy-saving policy in the private rented sector.  

This week, 74% of landlords agreed with the government’s move to scrap its energy performance certificate proposals for the sector, according to a report by Landbay.  

Following the government’s policy reversal, National Residential Landlords Association chief executive Ben Beadle said: “It is welcome that landlords will not be required to invest substantial sums of money during a cost-of-living crisis when many are themselves struggling financially.   

“However, ministers need to use the space they are creating to develop a full plan that supports the rental market to make the energy efficiency improvements we all want to see.  

But Social Market Foundation researcher Niamh O Regan says: “British homes are on a dismal trajectory when it comes to improving energy efficiency, and failing to improve the private rented sector is losing an easy win.  

“Recent government actions seem to suggest that renters can either have energy efficient homes or affordable rents – but this is a false logic.   

“Poor energy efficiency is currently costing them millions. Instead of trying to understand landlords and how they can be motivated to better insulate their properties, the government would rather kick the can down the road, pushing us further and further from greener, healthier and more net-zero friendly homes.”  

The Social Market Foundation’s study was conducted by research group FocalData, which conducted a nationally representative survey of 1,200 respondents in September.