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£700 for your pocket

Catherine Deshayes

Tenants living in inefficient properties could save £700 a year on energy bills if their landlord installs straightforward energy saving measures...

Eight out of 10 people would think twice about renting from a landlord whose property had a poor Energy Performance Certificate.

Private housing tenants could save up to £700 a year on energy bills if their landlords installed straightforward energy saving measures, according to new figures.

A UK-wide survey commissioned by the Energy Saving Trust, the UK's leading organisation set up to help people fight climate change, reveals that seven in 10 householders said they would try and drive down the price if the home they were trying to buy or rent had a poor energy efficiency rating. And 85 per cent of people would try and knock up to 20 per cent off the rental or purchase price.

The research also found that around two thirds of Brits (68 per cent) think landlords will pass on the cost of making their properties more energy efficient to the tenant while eight in ten people would think twice about renting from a landlord whose property had a poor EPC.

Now, landlords are legally bound to show tenants the Energy Performance Certificate (EPC) score of the property they are renting out.

EPCs tell people how energy-efficient a home is on a scale of A-G. The most efficient homes which should have the lowest fuel bills are in band A.

Chief Executive Philip Sellwood said, "We know that people are going to be looking to rent out places that are cheaper to run - which is hardly rocket science. 

"A poorly insulated three bedroom semi-detached house could move from band F to C saving a tenant £700 a year on energy bills if the landlord installed straight-forward energy saving measures like insulation.

"There is no good reason for landlords to pass the cost of upgrading a property to meet energy efficient criteria to their tenants there is financial support available which can help recoup any financial outlay involved.

"We urge all landlords to see this new legislation as an opportunity not a challenge. All the evidence points to the fact that an energy-efficient home will be much more appealing to prospective tenants," added Mr Sellwood.

Landlords can apply for financial support to make their properties greener through the Carbon Emissions Reduction Target (CERT). 

In addition, landlords can apply for the Landlords Energy Saving Allowance a tax allowance which lets landlords claim on their income tax or corporation tax against the cost of buying and installing certain energy saving measures. Tax relief is for a maximum of £1,500 per property.

Landlords can contact the Energy Saving Trust on 0800 512 012 to find out what grants and offers are available to them to make their property more energy efficient. Landlords can also benefit from practical help offered by local authorities and council tax reductions for lower bands.

Source: The Energy Saving Trust