A lukewarm reception has been given by the RLA to the government’s Energy Bill ‘Green deal’ which is meant to raise energy efficiency in private rented sector properties and to lower gas and electricity bills for tenants.

One of the major problems - says the landlords association - is that privately rented homes are among the UK’s oldest housing stock. The 40% that are pre-1919 can have typically large attic spaces and no cavity walls – which make energy efficiency difficult without spending over £10,000 on each property to bring it up to standard.

“And when costs starts to exceed savings we have a big issue,” said the RLA’s Policy Director Richard Jones. “There has to be some financial support to help balance those figures.”

The second reading of the Energy Bill was in the House of Lords on Wednesday (22 December) and the association broadly welcomes the government’s ‘pay to save’ principle. It will, said Richard Jones, “sort out the easier, more modern properties for tenants to start seeing a real saving.

“The private rented sector, however, is going to be the hardest to treat and there are few opportunities to reduce costs by economies of scale - so energy suppliers should be incentivised to help tackle the problems.

“There are concerns, too, that other ways of addressing energy efficiency could get forgotten - such as improving the landlord’s energy savings allowance which offers tax relief in exchange for improvements. And the bill does not address how the cost of improvements is to be apportioned between gas and electricity bills.

”We also believe that enough time should be given to assess whether the Green Deal has been a success, and provide opportunity to build on experience, before a review is held that could consider unfortunate compulsion.

“Although the private rented sector represents only 14% of overall housing provision it is the only housing sector faced with the prospect of compulsion - and the RLA believe mass voluntary compliance would be far more effective.

“The are other reservations, which we are raising with the government, but we are pleased that the bill does not want to see its powers cause a decrease in the number of properties available for rent at a time when there is a shortage of housing and a growing need for it,” concluded Jones.