Engaging Private Landlords in Energy Efficiency

Engaging Private Landlords in Energy Efficiency Research Seminar Two 23 October 2014

Engaging Private Landlords in Energy Efficiency – Seminar Two

Introduction Jo Wilson

Head of Policy, Future of London

Future of London • Urban policy network: independent, member-based, non-profit • 35 public-sector members – LAs, HAs, GLA, TfL, social enterprise – and variety of private-sector partners • Capacity-building and connection for practitioners at all levels in regeneration, housing, infrastructure, economic development • Focus on delivery – the how as much as the why…

Agenda 09.10 Research overview and update – Jo Wilson 09.20 The Private Rented Sector energy efficiency regulations – Marcia Poletti, PRS Policy, DECC 09.35 The London Rental Standard – Rhona Brown, Senior Policy Officer, GLA 09.50 Discussion 10.25 Summing up and next steps 10.30 Coffee/networking 11.00 Close

Engaging Private Landlords in Energy Efficiency

Nigel Turner

Business Development Account Manager, EDF Energy

Engaging Private Landlords in Energy Efficiency

Research update Jo Wilson

Future of London

Research aims • Present landscape of London’s changing private rented sector – tenants, landlords etc • Demonstrate the need for a variety of efforts at borough level to: – engage private landlords in energy agenda – improve knowledge/data on private landlords – improve the quality of their private rented stock • Identify some solutions and recommendations for dealing with complex challenges of sector.

Project timeline August and September • Desk-based research October • Data gathering, case studies • Research seminars: 2nd October: Marketing energy efficiency to London’s private landlords 23rd October: Tracking London’s ‘invisible’ landlords December

Key findings from part one PRS in London grown by 10% since 2001, but not evenly spread across city Proportion of private tenants in London, 2001

Data source: ONS

Proportion of private tenants in London, 2011

Affordability • 26 out of 33 London borough private rents ‘unaffordable’ Median cost of private renting as proportion of median take-home pay by borough

Data sources: VOA (private rents; GLA datastore (income)

‘Vulnerable’ populations • Reliance on private rented sector for temporary housing • Number of families with dependent children in PRS doubled 2006-10 Number of households in temporary accommodation

Source: Trust for London

Source: Shelter

Percentage of families with dependent children, 1993-2010

Energy Efficiency • In 2010, PRS had average levels of B and C-rated properties…

• …but only 42% landlords surveyed had EPC • High number of ‘G’ properties – opportunity?

Energy efficiency band by tenure, London 2010

Source: GLA

Issues with housing stock Compound effect: age of property, conservation, high number of flats Period when median home was built

Source: GLA

Conservation areas

Landlords Scarcity of data. Some statistics/facts: • 69% surveyed landlords called themselves ‘professional’ • c. 360,000 landlords operating in London • 13,343 LLAS accredited landlords (3.7%)

Data sources: ARLA, ONS, LLAS

Policy drivers • 2004 Housing Act – powers for local authorities to improve standards (HHSRS) • Energy Act 2011 - regulating energy efficiency – onus on local authorities to enforce and mediate • GLA - retrofit of 2.4 million homes by 2020

Engaging Private Landlords in Energy Efficiency

Domestic PRS Energy Efficiency Regulations

Marcia Poletti DECC

Domestic Private Rented Sector (PRS) Energy Efficiency Regulations 23 October 2014 17

Why intervene?

Domestic:

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25% UK carbon emissions from domestic buildings

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Private rented sector (PRS) growing – now 18% of all housing

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PRS has highest number of least energy efficient homes (1 in 10)

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Uptake of energy efficiency measures in PRS is lower

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High fuel poverty levels (1 in 5 PRS homes)

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Evidence linking cold homes to poor health

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Improved energy efficiency supports growth and jobs + increases energy security

Energy Act 2011 Domestic only: • By April 2016 tenant’s will have the right to request consent for energy efficiency improvements that may not be unreasonably refused by their landlord Domestic & Non-Domestic: • By April 2018 the least energy efficient property (expected to mean F & G EPC rated) will be prohibited from let until they are improved Secondary legislation to provide detail 19

Developing the detail • Stakeholder working groups formed February 2013 • Groups tasked with considering range of issues and advising on detail of regulations • Landlord, tenant, environmental and professional bodies represented • Final report summarising key discussion points and recommendations available at: ●

●

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www.gov.uk/government/publications/domestic-private-rented-sector-regula

https:// www.gov.uk/government/publications/non-domestic-private-rented-sector-re

Regulations • DECC held a public consultation July-September 2014 on the detail of the regulations • DECC is now developing the detail, including an Impact Assessment of the regulations on households, businesses, and the wider UK • While stakeholders have provided a range of opinions on the PRS policy steers, the regulations are not final

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Who is likely to be in scope of the regulations?

• Regulations apply to rented dwellings & leased non-dwellings in England and Wales • Properties must have an EPC • Properties occupied under license not in scope • Proposal for very short leases or very long leases to be outside scope (Non-Domestic only)

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The minimum standard • Properties in scope will need to reach a minimum standard, likely to mean an E EPC rating or above (1 in 10 domestic properties & 18% non-domestic property currently F/G) • Landlord’s duty to ensure the property reaches a minimum standard • May not be appropriate for all buildings to be required to reach the minimum standard - certain time-limited exemptions will need to apply: ●

●

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Where a landlord has undertaken all cost-effective improvements (and still cannot get to the minimum standard) Where a landlord needs to obtain consent for proposed works but such consent is denied (e.g. planning permission) Where proposed works pose a high risk of materially devaluing the property

Enforcement & appeals Domestic: Local Authorities to enforce the provisions, with powers to impose civil penalties ÂŁ5,000 cap on penalties in Energy Act 2011 Non-Domestic: Local Authorities to enforce the provisions, with powers to impose civil penalties No cap on penalties in Energy Act 2011, although minimum/maximum penalties could be established Both: Landlords might be required to register exemptions for reaching the minimum standard Provisions for appeal to First Tier Tribunal, General Regulatory Chamber proposed

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Thank you

Contact details: Marcia Poletti, 0300 068 6915 marcia.poletti@decc.gsi.gov.uk

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Engaging Private Landlords in Energy Efficiency

The London Rental Standard

Rhona Brown GLA

The London Rental Standard: Engaging with private landlords

Rhona Brown Greater London Authority Future of London Seminar 23rd October 2014

Introduction • The Mayor’s objectives • London’s private landlords – what do we know?

• The London Rental Standard

The Mayor’s objectives for the PRS • Increase supply • Promote longer tenancies • Improve standards through accreditation and improve tenant awareness (London Rental Standard) • Tackle rogue landlords and beds in sheds • Help with high rental deposits • Support some forms of new regulation: ASA, redress • Oppose rent controls

Who are the landlords?

• Diverse sector – institutional, professional, accidental and rogue.

• Very little data • LRS campaign based on several sources – Our own focus groups and surveys, surveys of London landlords conducted by YouGov for Shelter and DCLG data: o London landlords are most likely to be “Wealthy executives” and “Educated urbanites” – ACORN classification o Likely to be over 55 and male, though London Landlords more diverse than elsewhere in UK o Two thirds are letting only 1 property and 90% are letting 1-4 properties o 70%-80% live in London o Around half have no mortgage o Less than 10% are full-time landlords o Around 60% use a letting agent o 2/3 of landlords and agents are unaware of basic legislation, such as the HHSRS

London Rental Standard

• • • •

Robust and realistic minimum standards Affordable and attainable All industry schemes under one roof ‘Single badge’ of accreditation

London Rental Standard: Marketing

• £250k marketing campaign over 3 years, including £100k of TFL inventory and £150k to spend on research, design and paid-for advertising o Ran focus groups to test messages that landlords and agents would respond to o Found “peace of mind”, “maintaining good relationships with tenants” and “cash incentives” to be key messages o Surveyed landlords, agents and tenants to find out about awareness of accreditation – low amongst landlords, but important to tenants

Raising awareness with landlords, agents and renters

LRS offers to landlords

• Free 24 hour home emergency cover worth £59.50 when you take out buildings insurance with Endsleigh

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£5 registration with Mydeposits, and 30% off all deposit protections

…and more to come this year, including energy efficiency offers via the GLA’s Re:NEW team

Outcomes Early days, but: • Very good take up from agents, who manage 60% of tenancies • 1,495 - almost half of the agents in London (est) • Less good response from landlords • However, good response to the marketing – awareness of the LRS and accreditation had increased amongst non-accredited landlords • Of landlords who had seen the marketing material around 40% said they went on to visit the website • Next phase will begin to go live in January… messages and new strategy to be determined

To find out more visit www.london.gov.uk/landlords Rhona Brown Senior Housing Policy Officer Greater London Authority rhona.brown@london.gov.uk

Discussion o Do local enforcement teams have the tools and capacity they need to improve energy standards? Are roles and responsibilities clear? o How can accreditation and licensing schemes be used to a) engage landlords and b) improve energy efficiency standards? o What examples are there of cross-sector and/or area-based approaches to identifying ‘rogue’ landlords or vulnerable people/properties? o Can housing/sustainability/health budgets be shared to increase resources for improving energy standards in the PRS?

Thank you!

Future of London futureoflondon.org.uk @ futureofldn Future of London