‘Link landlord EPC costs to rents instead of £10k cap’ politicians told

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Landlords’ financial contribution to upgrading properties in Wales should be linked to average market rents in any given area, suggests the NRLA.

Under its proposals, landlords would need to contribute a minimum of £5,000, while those renting properties in areas with higher average rents would need to contribute more, gradually tapering to £10,000.

The NRLA believes the proposed £10,000 cost-cap on energy efficiency upgrades is uneconomical in a region where some properties might not meet the required standard.

Ineffective

It says the MEES (Miniumum Energy Efficiency Standard) is ineffective, especially in Wales, given the prevalence of older properties which cost more to upgrade to a higher EPC band.

The cap could represent a significant proportion of the value of the average property and would drive landlords out of the market.

NRLA chief executive Ben Beadle says the government fails to accept the realities of different property and rental values across the country, and that the private rented sector contains some of the most difficult to retrofit homes.

He adds: “Ministers need a smarter approach with a proper financial package if we want to ensure improvements to the rental housing stock.”

A new report from Members of the Senedd has taken the NRLA’s comments on board and suggests that the Welsh government should instead consider tax incentives in the PRS, arguing that ministers could look at how to use council tax and the land transaction tax to incentivise energy efficiency retrofit as a priority.

The report also warns: “While the UK government continues to drag its feet over whether to increase standards in the private rented sector, the sector remains in limbo.”

In its evidence, the Chartered Institute of Housing says there is significant evidence that MEES is currently poorly enforced. It calls for the development of “an effective national MEES compliance and enforcement database and tools”, which could be delivered across Wales.

Read all our stories about MEES.

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