Councils could order landlords to make private rented homes energy efficient

The forthcoming Energy Bill could give local authorities the power to insist that landlords improve the energy efficiency of the worst performing private rented homes.

The Bill could also see a power allowing tenants to ask for reasonable energy efficiency improvements and receive them from 2015 onwards.

“Whether or not we use these powers will be subject to a review”, the Department for Energy and Climate Change said.

The announcements coincided with the launch of the government’s so-called Green Deal, which it said was a radical way of making energy efficiency available to all – whether people own or rent their property.

The Green Deal, which is expected to be available from Autumn 2012, will be open to homes and businesses and will involve three stages:

• Step one: an independent energy survey of the property, giving clear advice on the best energy efficiency options, such as loft or cavity wall insulation.
• Step two: Green Deal finance to be provided by a range of accredited providers, which will be repaid through savings on energy bills
• Step three: Homes and businesses will then receive their energy efficiency package. Only accredited measures will be installed by appropriately-qualified installers, overseen by government.

Chris Huhne, Energy and Climate Change Secretary, said: “The Green Deal’s about making people feel as warm as toast in their homes. I want Britain to say goodbye forever to leaky lofts and chilly draughts. At a time of increasing gas prices energy efficiency is a no-brainer.

“It’s also a massive economic and job opportunity which could help Britain’s economy turn the corner. With up to 100,000 green jobs up for grabs over the next 5 years, and even more in the long term, this is about growing our economy in a way that’s good for jobs, the environment and energy security.”

DECC said it wanted the Green Deal to apply to the whole of Great Britain and so it was talking with colleagues in Scotland and Wales about the opportunity.

David Orr, chief executive of the National Housing Federation, said housing associations were excited by the Green Deal's potential to help green homes and reduce fuel bills.

He added: “The National Housing Federation is working closely with DECC to ensure housing associations are at the forefront of delivering the Green Deal, not just for their affordable 2.5 million homes, but across the entire housing stock.”