Minimum Energy Efficiency Standards new strategy for tackling cold homes Ian Wright Environmental Health Service Manager
Content MEES the regulations & their pros and cons The Oxford approach to cold homes Non-HMO PRS HMO Licensing
The domestic PRS Minimum Standard legal framework 2011 Energy Act gave powers to introduce a minimum standard in the PRS March 2015 - The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 made. Come into force from April 2018 Applies to domestic and non-domestic sectors.
The Domestic PRS Minimum Standard From April 2018 privately rented properties in England and Wales will need to reach a minimum Energy Performance Certificate (EPC) rating of E before they can be let Landlord s duty to ensure the property complies with the regulations. Regulations apply to all properties that are: legally required to have an EPC, and let on an assured, regulated or domestic agricultural tenancy.
Exemptions Improvements only required where they can be made at no cost to the landlord using Green Deal, Energy Company Obligation (ECO) or third party grant funding Compliance through EPC band E or registering an exemption where the improvements are not possible or practical
Trigger points Minimum standard will apply in a phased manner: New tenancies (to new or existing tenants) from 1 April 2018 ( soft start ); All domestic tenancies (even where there has been no change in tenancy) from 1 April 2020 ( backstop ), where there is an EPC.
Enforcement Compliance Notices Can be issued by a LA where they believe that a landlord may be in breach of the regulations (currently or during past 12 months); Must be in writing (hard copy or electronic); Used to request information from the landlord which will help LA to decide whether that landlord has in fact breached the prohibition, for example: an EPC; the current tenancy agreement; any Green Deal Advice Report in relation to the property. any other relevant document that the enforcement authority requires in order to carry out its compliance and enforcement functions.
Enforcement Penalty Notices Can be issued by an LA where they are satisfied that a landlord is (or has been in the last 18 months) in breach of the PRS MEES Can relate to a financial penalty, a publication penalty or both Maximum penalty of 5k Carry a right to appeal for the landlord to General regulatory Chamber If not paid by a landlord, the LA can take the landlord to court to recover the money.
Penalties
Pros and cons of MEES for LAs Cons Only applies where an EPC is required many HMOs are exempt The no cost to landlord exemption severely weakens ability to require improvements In 2 tier authorities EPC enforcement is not a priority for Trading Standards Pros Consultation already underway on introducing financial contributions for landlords Penalty notice regime provides opportunity for cost recovery
Oxford - Town & Gown The percentage of households who own their home is low in Oxford 47% compared to 63% in England. The percentage of households who rent their home in the private sector is high 28% in Oxford compared with 17% in England Private sector renting grew by almost 50%, from nearly 11,000 households in 2001 to nearly 16,000 households in 2011
Dreaming Spires? Oxford is often cited as the least affordable UK city 17 super output areas that are in the 25% most deprived in the country In 2014, 6840 Oxford households (11.9%) were estimated to be in fuel poverty, which is above both the national average (10%) and the figure for the Southeast (8.3%) 7 th highest rate of rough sleeping in England in 2017
Political landscape Building a world class city for everyone Green policies and housing are a major political battleground Corporate Priorities: A Clean and Green Oxford Meeting Housing Need
Dual approach Information & assistance Led by Environmental Sustainability Service Seen by sector as neutral Enforcement Complement HMO Licensing Non-HMO sector a concern
Promotion, education and cash Led by Environmental Sustainability Service Advising and signposting landlords on how to improve property s energy efficiency and thermal comfort for occupants including using thermal imaging Ran four events for landlords highlighting the 2016/2018 Energy Act requirements, the impact of fuel poverty on life and health and available funding This was supported by newsletters, flyers and information on the website Seek out funding opportunities
The carrots In 2014/15, the Council contracted National Energy Foundation to manage Landlords grants for tenants on benefits. This was a trial to offer landlords 500 towards boiler installation, encouraging them to pay the rest. As a result, 12 boilers were installed. In 2016 35k funding from Ebico Charitable Trust helped create the Private Rented Energy Efficiency Grant fund (PREEG) Offered free surveys and 50% off all works which are laid out in a work package for landlords. This involves installing simple energy efficiency work; including loft insulation, pipe and cylinder lagging, LED lighting, thermostatic radiator valves (TRVs) and radiator foil for landlords.
PREEG outcomes Improved 58 properties 366 measures including 32 loft insulation installs Lessons Lack of interest from landlords even at 50% off Focussed on small measures better to treat fewer properties with larger sums Build capacity to deliver projects
Thermal imaging A project offering thermal imaging of rental properties to help landlords understand the need to improve their homes The thermal imaging involved both going out to take the photos and the production of useful reports for landlords highlighting issues with heat loss from their properties. 2013/14 = 23 properties 2014/15 = 36 properties 2015/16 = 19 properties Outcomes Primarily awareness raising Community engagement Strengthened our here to help message
Enforcement Proactive approach to PRS enforcement in non- HMO sector Whole house inspection approach 250 p.a. target 2 work streams: Complaints from tenants/residents Intelligence led targeting
Targeting F&G Rated properties EPC bulk data first obtained in 2012 55,400 properties in Oxford, 23,891 EPC certificates, 1500 were rated F or G EPC data showed 7% of the PRS in Oxford as having an unsatisfactory EPC F and G rating To ensure accuracy, the EPC data was checked, and the Council s knowledge of individual properties to target the worst offenders
Outcomes 121 F/G properties identified with 59 inspected, 31 of which were whole house HHSRS All assessed properties had Category 1 hazard for excess cold 107 other deficiencies found Nearly half of the inspections also found damp and mould deficiencies Notices issued to secure improvements
Conclusions Using EPCs to target interventions is a valid approach Low EPC ratings are likely to contain more hazards than just excess cold. The level of other deficiencies found is significant Evidence of the likely health impacts of these poorly performing properties
HMOs & MEES
HMOs separate tenancies (1) HMOs may be exempt from requirement to provide an EPC Guidance says to be exempt: HMO s (Houses in Multiple Occupation, for example these can be bedsits, hostels, shared houses etc) which have not been subject to a sale in the previous ten years, or which have not been let as a single rental in the past ten years. Separate tenancy agreements likely to be exempt and these may house the more vulnerable people No obligation to obtain an EPC on a letting of an individual non self-contained unit within a property, such as a bedsit or a room in a house in multiple occupation (HMO).
HMOs separate tenancies (2) However the property in which the unit is situated may already have its own EPC covering that property as a whole; this could be because the property had been bought within the past ten years, or because it had previously been rented out on a whole-property basis If a property as a whole has a valid EPC and that EPC shows an energy efficiency rating of F or G, then the owner/landlord will not, from April 2018, be able to issue new tenancies for non-selfcontained units within the property until steps are taken to comply with the Regulations.
Dealing with HMOs - EPC register based approach Extracted all EPCs Cross checked against HMO records List of HMOs with EPCs Filtered F and Gs Put a condition on each licence to request EPC with E or above Follow up to check improvements 138 with F or G So far, 64 are now E or above
Application process
Condition requiring EPC
HHSRS as a backstop We inspect all HMOs prior to licensing & then five year inspections If an HMO is exempt from requirement to provide an EPC, then we will be able to identify any Category One hazards and seek improvements via Improvement Notice
Summary Continue to use F&G rated EPCs to proactively target PRS properties In discussions with Trading Standards to agree delegation of powers under: Section 101 of the Local Government Act 1972 Section 9EA Local Government Act 2000 Regulation 5 of the Local Authorities (Arrangements for the Discharge of Functions) Regulations 2012 Using MEES to maintain our profile in improving energy efficiency & reducing fuel poverty