Written answers

Tuesday, 4 July 2017

Department of Communications, Energy and Natural Resources

Warmer Homes Scheme Eligibility

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

494. To ask the Minister for Communications, Energy and Natural Resources when the research and consultation on minimum energy standards in the private rented sector will be published as outlined in the strategy to combat energy poverty 2016 to 2019; and if he will make a statement on the matter. [31139/17]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

507. To ask the Minister for Communications, Energy and Natural Resources if his Department has studied a charity's (details supplied) proposal in its pre-budget submission to extend the warmer homes scheme to landlords who make their property available for at least three years; and if he will make a statement on the matter. [31137/17]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 494 and 507 together.

I am committed to increasing energy efficiency activity in the rented sector. People living in rented accommodation are twice as likely to live in a home that is E, F or G rated on the Building Energy Rating (BER) scale. Households living in relatively energy inefficient properties spend €160-€419 per annum more on energy than households in a home rated with a BER of B. This leaves those living in rented accommodation more vulnerable to energy poverty.

That is why the Government’s Strategy to Combat Energy Poverty commits to piloting an initiative to allow landlords participating in the Local Authority led Housing Assistance Payment (HAP) schemes to receive free energy efficiency upgrades.

My officials are currently working with Local Authorities to agree the terms and conditions for this pilot. This would be trialled initially with a small number of Local Authorities and the findings from this would inform consideration of a wider roll-out.

Regarding minimum energy efficiency standards for rented properties, the Government is considering such regulations as the typical residential tenancy in Ireland is short and hence tenants do not tend to invest significant sums in the property they are living in. At the same time, landlords under-invest in energy efficiency works as the tenants are the ones who benefit from the consequent energy bill savings and in a constrained rental market there appears to be little value placed on the energy efficiency of a rented property. These diverging incentives mean that energy efficiency investment is much lower in the private rented sector than among homeowners, even though Government grant schemes such as the Better Energy Homes scheme are open to landlords.

My Department has worked with external consultants to examine the impact of introducing minimum energy efficiency standards to counteract this market failure but this must be balanced against the impact such regulations would have on the price and availability of rented properties.

With the publication of the 2017 Census, my Department is working to update the research findings and incorporate this new data. By the autumn I intend to present the findings of this updated research to a seminar of tenant and landlord interest groups, with a view to publishing the research shortly thereafter and engaging in a full public consultation.

Comments

No comments

Log in or join to post a public comment.