The market for insulation and other domestic energy-efficiency improvements
should receive a further boost from next month, with the introduction of
legislation that will require landlords to show tenants the Energy Performance
Certificate score for their property.
That is the conclusion of a new survey from the
Energy Saving Trust, which
found that landlords and property developers are likely to face growing pressure
from tenants to achieve high energy-efficiency ratings.
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The survey of 2,146 people revealed that seven out of 10 respondents would
attempt to drive down the price of a property they were trying to buy or rent if
it had a poor energy-efficiency rating, with 85 per cent of those claiming they
would start negotiations by demanding that as much as 20 per cent is knocked off
the asking price.
In addition, eight out of 10 respondents said that they would reconsider
renting a property that had a poor energy performance certificate rating.
Energy Saving Trust chief executive Philip Sellwood said that the demand for
energy-efficient properties with an A-rated Energy Performance Certificate will
provide landlords and property developers with a commercial incentive to invest
in measures such as insulation and double glazing.
"We know that people will look to rent out places that are cheaper to run –
it's hardly rocket science," he said. "A poorly insulated three-bedroom
semi-detached house could move from band F to band C, saving a tenant £700 a
year on energy bills if the landlord installed straightforward energy-saving
measures such as insulation… All the evidence points to the fact that an
energy-efficient home will be much more appealing to prospective tenants."
The survey also highlighted fears that landlords who undertake
energy-efficiency improvements may seek to cover the initial outlay with
significantly higher rates, with about two thirds of respondents claiming they
expected landlords to seek to recover their costs.
But Sellwood insisted that financial support was available from the
government to help stop this from happening, in the form of funding for
landlords through the government's Carbon Emissions Reduction Target (CERT) home
insulation scheme, and a tax allowance, called the Landlords Energy Saving
Allowance, of up to £1,500 per property for landlords installing
energy-efficiency measures.
"There is no good reason for landlords to pass the cost of upgrading a
property to meet energy-efficient criteria to their tenants," he said. "There is
financial support available which can help recoup any financial outlay involved.
"
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