5. Minimum energy standards for housing in the Arun district

There are over 10,000 households renting privately in the Arun district – 15% of the housing stock. Rented homes include many more households in fuel poverty;

(19.4%) compared to those in owner occupied properties (7.7%). Those in the private rented sector also tend to be deeper in fuel poverty, with an average fuel poverty gap of £383, compared to just over £200 for those in local authority and housing association properties.

Many rental properties are poorly insulated and therefore heating costs are high, which can have an adverse effect on tenants’ health. The private and social rental sectors also contain some of our most vulnerable residents.

A problem often found in the rental sector is the “split incentive” which has been repeatedly identified as a reason why privately rented stock performs less well than owner occupier sectors. Landlords traditionally are required to pay for energy efficiency measures such as better insulation or windows or new heating systems and boilers, but it is the tenant who reaps the benefits of more efficient heating, in terms of physical comfort and economically because of lower heating costs.

The Green Deal and ECO funding did offer some funding and gave opportunities to address the split incentive. ECO funding is now more focused on the fuel poor and private rented is excluded where there is a poor EPC rating. It is felt that these landlords now have the legal requirement to improve through the introduction of the Minimum Energy Efficiency Standards (MEES). There are also several other underplayed benefits to improving the efficiency of a rental property that can be used to motivate landlords; including lower turnover of tenants, reduced chances of rent arrears and long-term physical benefits to the property such as reduced condensation.

Where motivation is still not enough the MEES and HHSRS (Housing Health and Safety Standards) can be used to enforce improvements. This section explains the various policies and programmes that will be used by the Council to help improve the energy efficiency standards of housing in the District, in particular the private rental sector.

Arun District Council passed a motion on 15th January 2020 to support a request for officers to explore what options might exist for introducing further controls on the definition, number and quality of Homes in Multiple Occupation (HMOs) and prepare appropriate reports for the relevant decision body of the Council. Introducing further controls would be expected to contribute to an improvement in the social and economic conditions in the areas and an improvement in general housing conditions, including in energy efficiency.

5.1 Private Sector Housing Enforcement Action

The introduction of the Housing Health and Safety Rating System (HHSRS) in 2006, following changes to part 1 of the Housing Act 2004 provided Local Authorities with new powers to effect improvements to the thermal environment of dwellings. The “excess cold” hazard is the highest scoring of the 29 identifiable hazards under HHSRS and is the most prevalent. However, it should be noted that the guidance on HHSRS encourages more emphasis on hazards that are threats to health and safety rather than the comfort or convenience of the occupiers of the property.

Since its introduction, Arun District Council’s Private Sector Housing team have been responsible for the enforcement of HHSRS in the district. With the Council’s Energy Efficiency Officer and the West Sussex Fuel Poverty Co- ordinator also based in this team, Officers work together to ensure excess cold hazards continue to be identified and improved in the most practicable and appropriate ways.

5.2 Minimum Standards in Private Rental Sector from 2018

The Energy Act 2011 introduced plans to address energy efficiency of homes in the private rental sector through the setting of minimum standards in England and Wales;

• As of April 2016, landlords are now obliged to permit tenants to undertake energy efficiency improvement works
• Commencing in April 2018 it is now illegal to rent out a property where the Energy Performance Certificate is rated F or G. This is currently only for new tenancies but will be for all rental properties requiring an EPC from April 2020.
• There are future plans for rental properties to achieve the minimum of a C EPC rating by 2030.

Arun District Council are supporting this legislation and are promoting this to landlords and tenants. Information leaflets have been produced and information has been presented to landlords in the Landlords Forums. The Exemption Register is regularly reviewed, and landlords are contacted regarding their exemptions.

Arun District Council recognises the benefit of enforcing Minimum Energy Efficiency Standards (MEES) in conjunction with HHSRS and this is being explored.

Arun District Council has been successful in a bid for funding from the Ministry of Housing, Communities and Local Government (MHCLG) to obtain district-wide housing stock modelling data. This will prove helpful for targeting initiatives in private rented accommodation, tackling MEES and fuel poverty and providing evidence to assist in discussions with public health and possibly access future funding.

5.3 Arun & Chichester Landlord Accreditation Scheme

Arun District Council is working in partnership with Chichester District Council, the University of Chichester and Chichester College to introduce a district wide Landlord Accreditation Scheme. Both the University and College fully support the scheme and will, in the future, only manage and promote properties which have been accredited.

The Scheme is free and as part of the application the premises are inspected and assessed against a number of criteria including energy efficiency and compliance to MEES. The inspection makes sure that the property is free of serious hazards, including excess cold, under the Housing Health and Safety Rating System (Housing Act 2004). Once accredited the property will normally remain in the scheme for a period of 5 years where upon a new application will be required. This scheme is not restricted to student accommodation and is open to all landlords in the district.