New standards requiring privately rented properties in the UK to improve their energy efficiency ratings are a “very positive thing”.
That’s according to Kilian Pender, CEO of the Green Deal Finance Company, which aims to provide customers with accessible financing to upgrade their homes.
The Minimum Energy Efficiency Standards (MEES) will mean from the 1st of April 2018, properties let out in the private rented sector will need to have a minimum energy performance rating of ‘E’.
Mr Pender told ELN: “Domestic homeowners actually live in their properties so the incentive to improve the quality of the housing stock in which they live is already pretty high.
“The challenge for government to try to improve the housing stock of landlords and privately rented properties is that landlords have less of an incentive to invest in those properties. I think trying to encourage investment is certainly a good thing.”
He added although the standards might have financial impacts upon single-property and ‘accidental’ landlords, the government wouldn’t be “fully compliant with the spirit of their objectives to reduce carbon emissions” if it didn’t attempt to improve efficiency in the private rented market.
He added: “Even though potentially landlords may have to come out of pocket now to comply with the legislation, in terms of the increase in value to their property, it can be potentially quite beneficial.”
He added the standards would be likely to help resolve the high levels of fuel poverty in the sector.
The Scottish Government is proposing minimum energy efficiency standards for privately rented homes in the country by 2019.