Energy companies to fund efficiency work

Ministers unveiled plans that would see all social housing conform to a new ‘warm homes’ standard by 2020 this week. The standard would cover insulation and connection to low carbon heating systems such as district or renewable heating.

The government wants to offer free energy efficiency works to all social tenants, funded by energy companies. The Communities and Local Government department said the cost would be up to £19 billion.

While social landlords greeted the plans with enthusiasm they could still face opposition from energy companies. None of the energy companies contacted by Inside Housing wanted to discuss the scheme. Npower and British Gas both indicated that they needed to spend more time working out the implications as part of the consultation process.

As well as cutting tenants’ fuel bills, the government says focusing on social housing as a priority would help the green homes industry develop enough capacity to roll out improvements across the whole residential sector.

Sarah Webb, chief executive of the Chartered Institute of Housing, said: ‘Like the decent homes programme, we hope this initiative not only improves stock condition but also helps support the training and employment of many professionals operating across the housing profession.’

The National Housing Federation welcomed the plans. Cameron Watt, policy leader, said landlords would be relieved they would not be expected to foot the bill for a second round of improvements following the decent homes programme.

Social landlords indicated this week in a major Inside Housing survey that they would consider charging higher rents for energy efficiency improvements to homes. Fifty-eight per cent of respondents to The Green Survey, organised with manufacturer H+H, said they thought rents should increase in return for eco-upgrades.

Ministers are also consulting on whether to regulate the private rented sector so that landlords could only rent out a property if it had received loft and cavity wall insulation.

Those improvements to private homes could be funded through a new ‘pay-as-you save’ model, also announced in the strategy. Homeowners could finance green improvements using a loan which they would then repay using savings from fuel bills. The loans would be tied to properties rather than individuals.

Launching the new strategy on Tuesday, communities secretary John Denham, housing minister John Healey and energy and climate change secretary Ed Miliband, said the improvements could create up to 65,000 jobs in the green homes industry.

Have your say

You must sign in to make a comment