The Welsh Senedd has listened to calls from Propertymark for financial incentives to decarbonise the private rented sector and listed them among recommendations for the Welsh government.
As part of the Senedd Climate Change, Environment, and Infrastructure Committee’s inquiry into the decarbonisation of the PRS, Propertymark provided written and oral evidence to members of the Senedd.
The UK government has consulted on a proposal for all new tenancies to meet an Energy Performance Certificate (EPC) rating of C from 1 April 2025 and existing tenancies by 1 April 2028, but landlords and property agents are still waiting on clarity on the decarbonisation targets.
To level the playing field for landlords and agents operating in Wales, Propertymark recommended that the Development Bank of Wales could offer grants or interest free loans to landlords to help them decarbonise and to finance retrofit. Other examples of incentives could be through the taxation system with possible reduced rates of land transaction tax (LTT) or council tax rebates for both landlords and homeowners. The industry body also called for a clear strategy to support landlords contribute towards Net Zero as current targets for different tenures was causing confusion across the sector.
In total, the committee made 29 recommendations which will go to the Welsh government
Timothy Douglas, the organisation’s head of policy and campaigns, said: “Propertymark supports the Welsh government’s aims of achieving net zero and moves to improve the energy efficiency of homes in Wales. A long-term housing decarbonisation strategy with cross-party support and realistic targets can help to achieve this.
“We’re really pleased to see that our proposals such as the availability of interest-free grants for landlords, requests for an agreed timetable and milestones for the sector, the production and inclusion of a clear decarbonisation strategy, alongside calls for the minister to provide clarity on how she will raise awareness have all been recommended to the Welsh government.
“We now urge the Welsh government to act upon these recommendations and work with the UK government to introduce policies that allow landlords and homeowners to decarbonise their homes and properties in Wales.”
Wont happen, there simply isn’t enough builders to do the work in time, we are talking 25 months now for all new tenancies, meanwhile this still trundles along with Landlords unsure of requirements, in all honesty it will be 25 months before any decision will be made.
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And here is the real problem ………….Propertymark supports the Welsh government’s aims of achieving net zero and moves to improve the energy efficiency of homes in Wales.
Before you support someone, you need to know if its achievable! A very high percentage of pre 1950 rented properties in Wales are next to impossible to ‘actually’ achieve the high standard’s that they support. Its about time these supporters within government and outside organisations actually take a look at some of these properties and see what would be involved at the coal face. For some would be catastrophic for the homes appearance, destruction of many external and internal charisma (why people like the home they live in!!), continued maintenance costs, impossible conversions for many and costs beyond their comprehension.
Oh yeah the Welsh government is going to start to hand out financial support to PRS. Dream on.
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Agree Woodentop. Upgrading a 1950’s house will be expensive enough but a third of all rental stock in the UK was built pre 1919 think how expensive they will be to upgrade. Currently only 17.6% of pre 1919 houses can make a C grade. If you have a £1.50M pound Victorian house in London renting for £3,000 a month you can justify spending £10,000 (the new proposed exemption limit to replace the existing £3500 one) to upgrade but if you have a £100,000 house renting for £600 a month in Rochdale the sums don’t work out so well. Don’t forget also that you will be required to spend up to the exemption limit unless the cheapest recommended improvement measure exceeds £10,000. So exemption does not mean necessarily mean no cost at all. Also currently once you have an exemption it only lasts five years and you are then required to try again.
If your property is not domestic a 7 year payback rule applies so you only have to carry out measures that will pay for themselves in 7 years. Many domestic measures have payback periods measured in decades not years but are still going to be compulsory which does not seem fair at all.
They talk about interest free loans being a possibility but I am sure this will only apply to owner occupiers as everybody believes the popular myth that all landlords trading as they do in tenant misery are loaded and everything imposed on them serves them right.
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