As part of the committee’s inquiry, we provided written and oral evidence to the cross-party committee of Members of the Senedd.
Long-term strategy to decarbonise private housing needed
Propertymark encourages consideration of staged actions relating to The Welsh Parliament’s Climate Change, Environment and Infrastructure Committee's inquiry into the decarbonisation of private housing.
Financial incentives
Landlords and property agents are still waiting on clarity on decarbonisation targets proposed for England and Wales by the UK Government after their consultation on a proposal for all new tenancies to meet an EPC rating of C from 1 April 2025 and existing tenancies by 2028 as part of the Minimum Energy Efficiency Standards (MEES.) The cost cap would be £10,000, which would impact many Welsh properties the hardest, with Welsh properties having some of the lowest property values in the UK and low energy efficiency ratings.
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. We also called for a clear strategy to support landlord's contribute towards Net Zero as current targets for different tenures was causing confusion across the sector.
Improving data and understanding of housing stock
Integral to improving energy efficiency in the Welsh PRS will be improved data to help policy planners target resources. We used the inquiry to reinforce our call for a Welsh Housing Survey on similar lines to the English Housing Survey. Currently, the only source of data available in the Welsh Housing Conditions Survey 2017-18, which needs refocusing for today’s environmental challenges.
Raising a national campaign towards Net Zero
Propertymark called for the Welsh Government to undertake a Welsh national communications campaign for tenants, landlords, agents, and homeowners. This is now more important than ever with the rise in energy bills from the cost-of-living crisis. Such a campaign would be a central part of enabling a retrofit revolution on the path to net zero by conveying wider benefits to homeowners and landlords. Aside from helping tackle the climate crisis, the benefits of improving the energy efficiency of the nation’s housing stock include cost savings on household bills.
Recommendations
In total, the committee made 29 recommendations which would go to the Welsh Government including a recommendation that Rent Smart Wales should have a role in raising awareness of the MEES among landlords and in identifying underperforming properties across Wales. It was also recommended that the Minister must publish an interim report on the findings of the Optimised Retrofit Programme to date and why she chose not to involve the private rented sector from the beginning of Phase 3 of the Optimised Retrofit Programme.
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.
