A recent study conducted by British Gas has highlighted a critical need for immediate energy efficiency improvements in around two-thirds of privately rented homes across the United Kingdom. The report underscores the necessity for landlords to receive both financial assistance and expert guidance to make informed decisions aimed at enhancing Energy Performance Certificate (EPC) ratings.
The research findings reveal a glaring gap between the perceived need for improvements and the actual execution, with a staggering 81 percent of landlords acknowledging the necessity for environmental enhancements in their properties. However, a mere 23 percent are willing to initiate these changes.
Within the private rental sector, comprising roughly 19 percent of UK households and encompassing approximately 4.6 million units, there’s a marked lag behind owner-occupied and socially rented sectors in adopting low-carbon heating solutions and incorporating smart technologies to boost energy efficiency.
According to British Gas estimations, nearly two-thirds of these privately rented homes necessitate energy efficiency upgrades, encompassing solutions such as low-carbon heating systems and smart technology installations.
The report exposes a paradox among landlords, where 56 percent express environmental concerns and perceive insufficient action from the government and the public in addressing climate change. However, they remain unconvinced about the potential benefits of environmental improvements on property rental values.
Key barriers hindering landlords from upgrading their properties stem from inadequate knowledge regarding EPC standards. Shockingly, 44 percent of respondents admitted to not knowing their property’s EPC rating, despite the requirement for a rating of E or higher in place since April 2020.
Moreover, a substantial portion of landlords either lack awareness or have overestimated the average cost (previously targeted at achieving an EPC C standard) to improve energy efficiency in their properties. The estimated cost to reach this standard is around £7,430. Additionally, 52 percent of surveyed landlords lack sufficient knowledge about available grants.
Gail Parker, director of low carbon homes at British Gas, emphasized the crucial need for collaboration between the government and the industry to provide landlords with the necessary support and knowledge to facilitate affordable and accessible changes. Parker highlighted the importance of focusing on enhancing energy efficiency across all households, not solely those owned by individuals.
Another significant barrier identified was the misconception about tenants’ preferences. While landlords assume tenants are indifferent to these improvements, nearly half of tenants view environmentally friendly practices as decisive factors when selecting a property. Surprisingly, only 30 percent of landlords reported receiving requests from tenants for green technology, with a majority (61 percent) responding positively by making installations.
In response to these findings, British Gas proposed several recommendations to the government, including the introduction of Green Upgrade Relief for landlords, government-backed loan terms for energy-efficient upgrades, and the establishment of a comprehensive advice service for homeowners.
Parker stressed the importance of tailored solutions for each home to reduce emissions and help customers save on bills. British Gas offers a home health check to aid landlords in understanding their home’s efficiency needs and equipped them with the requisite knowledge before implementing green changes.
The recent increase in government grants for heat pumps, rising from £5,000 to £7,500 in England, has made upgrades more accessible. British Gas is committed to providing cost-effective heat pump options and has expanded its services to support customers in various aspects of achieving net-zero emissions.
With a focus on collaboration and tailored guidance, British Gas aims to catalyse a significant shift in improving energy efficiency in privately rented homes, thereby contributing to a more sustainable future.