How much of a challenge is retrofit in the private rented sector? Well, large enough such that even forward-thinking local authorities, when targeting retrofit on harder-to-reach groups, look to focus on ‘digitally divided’ and non-English speaking owner occupiers rather than seeking large-scale engagement with the mass market of private landlords and tenants.
It is a tricky nut to crack. Especially in parts of South Yorkshire, where property prices do not match those elsewhere in the country, so the costs of retrofit as a proportion will far outweigh any value uplift or higher rental yields achieved from turning a ‘E’ rated house into an EPC ‘C’. The split incentive rule, where benefits from retrofit accrue mostly to the tenant while the landlord is left with all the costs, leaves most wondering what their motivation might be. Then add the coming wave of new legislation: an end to no-fault evictions, tenants to be allowed their pets(!), rumoured changes to Capital Gains Tax and Inheritance Tax. Many landlords say they are looking to sell up before it is too late.
The re-instatement of the Minimum Energy Efficiency Standard (MEES) deadline of EPC ‘C’ by 2030 has also been promised, and those who do plan to remain in the market are taking notice of this. South Yorkshire’s older housing stock is not at all energy efficient, and fuel poverty affected 19% of households in 2020, the second highest figure in the country. And that was before the cost of living crisis. Cold homes make unhealthy homes, and the sad events which led to the creation of Awaab’s Law for social landlords may result in similar requirements to respond urgently to cases of damp and mould in the private rented sector (PRS).
