Officials Urged to Address Requirement for Landlords to Upgrade Properties
Unrealistic Energy Efficiency Goals Threaten UK's Private Rentals Amid Skills Shortage
The government's plans to enhance energy efficiency in private rented properties could backfire due to the severe shortage of competent workers, the National Residential Landlords Association (NRLA) warns.
At present, the Department for Energy Security and Net Zero (DESNZ) aims to keep homes warm and reduce energy expenses by requiring landlords to upgrade their homes to an Energy Performance Certificate (EPC) rating of ‘C’ by 2030, lifting the existing minimum standard of EPC ‘E’. Only 48% of privately rented houses meet the ‘C’ or higher standard, as per government data.
NRLA chief executive, Ben Beadle, expressed concerns that the consultation gears tenants with unrealistic expectations about the improvement timelines for their residences. Beadle underscores the main hurdle as the "persistent scarcity of tradespeople essential to complete the task and close the 166,000-worker gap nationwide."
The shortage, currently estimated at 250,000 tradespeople, is projected to soar to 937,000 by 2032. Adrian Attwood, Executive Director at DBR noted in a City AM interview earlier this year, that factors such as an aging workforce, the economic crisis, and Brexit contribute to the dwindling uptake of new workers to the industry.
The DESNZ, however, remains hopeful about addressing the skills gap, promising to train up to 18,000 skilled workers to work on renewable energy projects, such as installing heat pumps, solar panels, and implementing insulation solutions.
Critics, though, argue that the government's approach falls short by neglecting to invest substantially in the upskilling of the existing workforce, essential for creating entry-level positions and improving productivity.
Fear of Another Rent Hike due to Rushed Refits
Warnings abound that forcing landlords to quickly upgrade homes could result in increased rents and energy expenses, or even abandoned properties. The government estimates that retrofitting properties to meet the ‘C’ standard would cost landlords around £6,000; however, recent JLL reports suggest the real expense could be as high as £35,000, six times the official estimate.
The worst-case scenario could see homes left uninhabited, as property owners decide it's more cost-effective to demolish them rather than upgrade them. Furthermore, Labour MP Jon Trickett raised concerns that landlords might exploit the new requirements to hike rents even further, negating the benefits of lower energy bills.
Rents across the UK are already on the rise, making home ownership an elusive dream for most renters. Energy Minister Miatta Fahnbulleh acknowledges the potential for landlords to shift retrofitting costs to renters, though she believes that, in past cases where properties have required upgrades, landlords have refrained from raising bills.
The DESNZ spokesperson expressed confidence, stating that the strategies could lift 500,000 households out of fuel poverty and save renters money on energy bills.
Mixed Perspectives on the Deadline
Advocates argue that upgrading homes is vital for lifting Brits out of fuel poverty and reducing the risk of damp and mold. Dan Wilson Craw, deputy chief executive at Generation Rent, contends that the government should intervene to lift renters out of fuel poverty and reduce carbon emissions.
However, Wilson Craw also notes that fewer than half of private rentals in England meet EPC 'C,' and landlords are unlikely to make improvements unless required. Fears that upgrades will be too expensive for landlords may be premature, given the availability of government funding for home upgrades.
The Warm Homes Plan, for example, features funding for thousands of families to install heat pumps, while the Energy Company Obligation finances retrofit measures for low-income and vulnerable households. The Boiler Upgrade Schemes also offers grants of £7,500 towards low-carbon heating system replacements.
In summary, resolving the severe skills shortage in the trades industry is critical for the UK to meet its energy efficiency and net-zero goals. A combination of expanding apprenticeships, providing retraining and upskilling opportunities, forging collaboration between stakeholders, and addressing regional disparities can help bridge the gap[4][5][3].
- The ongoing political debate surrounding the UK's energy efficiency plans extends to sports, as the National Residential Landlords Association (NRLA) questions the government's ability to manage the skills shortage in the trades industry, akin to a challenging match where one team lacks crucial players.
- As concerns about property upgrades and rent hikes rise among private rental tenants, the political landscape is directly impacted, reflecting a complex web where the realms of property, politics, and sports intertwine, much like a sport's seasonal progression where external factors significantly influence the final outcome.
