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The Warm Arm of the LawHow HHSRS and MEES can reduce fuel poverty in the private rented sector

Introduction to the project

Legislation - HHSRS• Risk based evaluation tool to identify hazards

• 29 hazards including Excess Cold

• Not linked to SAP

• "Excess Cold hazards come up in most, if not all, the ones [properties] that

we look at"

“The dwelling should be provided with adequate thermal insulation and a suitable and effective means of space heating so that the dwelling space can be economically maintained at reasonable temperatures”.

Legislation - MEES

• From April 2018, it is illegal to rent our F or G rated properties unless

exemptions are sought.

“MEES sets a precedent that EPC ratings are important. This is a massive step forward that these regulations are in place.”

• Consultations:• Introduction of a cost cap (£2,500 proposed)

• Trajectory of MEES > EPC C in 2030 (late 2018)

Purpose of this research

• To support the effective and proactive enforcement of minimum standards using both HHSRS and MEES in the private rented sector

Aim

• To identify current and planned practice plus barriers to actionObjectives

• Desk research, interviews with stakeholders and local authority practitioners and the development of a series of case studies

Method

Funder and steering group

Funder:

Funded by surpluses made by the energy supplier Ebico

Steering group:

Outputs

• Policy report

• Toolkit

• Blog

• CIEH webinar

RESEARCH FINDINGS:

HHSRS implementation and FTT/RPT excess cold cases

HHSRS implementation

• Variation in the level of implementation between

councils

• Use of FOI data on enforcement levels can be misleading

• Resources

• Reactive approaches: triage system

• Low and medium priority cases: engagement with tenant

and landlord

• High priority cases: allocation to an EHO

“This tiered approach still takes a lot of time and resources - it’s a

long process. We work on the basis

that we are educating landlords.”

HHSRS implementation

• Proactive approaches:

• Informal approaches to engage with landlords and agents

• Inspection regimes linked to accreditation and selective

licensing schemes

• Data targeting

• Charging for enforcement:

• Common practice

• Links with the Civil Penalties regime

“For improvement notices, because we are

not shy about serving them, we withdraw the charge if the notice is

complied with -provides an extra

incentive to comply. It gives our officers more freedom to go out and

serve notices too.”

Case study – Waltham Forest

• Guidance for landlords on the minimum requirements for privately

rented homes

…electric storage heaters at off peak or low cost rates...

…programmable fixed electric room heaters may also be acceptable in modern

homes provided with a high level of thermal insulation.

• Aspiration: EPC C

• Committed to work with local landlords

Case study – referral schemes

• Liverpool’s Healthy Homes scheme:

• Links with selective licensing and wider

enforcement activities

• Nottingham City Council’s domestic energy

efficiency and fuel poverty working group:

• EHOs promote their services through the delivery of

frontline staff training and referral forms

• Safer Housing Team and NEP used EPC to inform

works required

Case study: Norwich City Council• BRE research identified 1,670 private sector homes with

Cat 1 Excess Cold risk1 risk for excess cold (including

the owner occupied sector).

• The team’s annual target is to make 100 homes safe.

• Targeted enforcement approach including area based:

75 properties in one road, resulting in enforcement work

in two properties to remove excess cold hazards

• Early Help Hub’ (involves e.g. CCG and Social Services)

used to identify council of properties that may have Cat 1

hazard

Case study: Thurrock Council• 10,000 PRS properties – and rising

• 6,670 properties with a Cat 1 hazard – many Excess Cold

• Partnership approach (with public health, Fire & Rescue,

handyman service etc) to proactively surveying properties

and ensuring removal of Cat 1 hazards Surveys conducted

by advisor funded by Private Housing team

• - >1,000 Cat 1 hazards removed to-date with annual target

of 800

• Council operates a landlord accreditation scheme –

members receive information on HHSRS and MEES

RPTS / FTT Excess Cold cases

• Review of Excess Cold cases:

• 2006 > 2010: 33 cases featuring Excess Cold

• 2011 > 2017: 38 cases featuring Excess Cold

"Tribunal decisions are inconsistent, so it's difficult to know their latest thinking. This leads

to a lack of confidence for us in terms of what counts as affordable warmth - what can we

enforce?“

“There is no consistency with

decisions - another local authority will have success (with

requiring the replacement of electric

heating with gas central heating) and

yet we fail.”

RPTS / FTT Excess Cold cases

• Kassim vs Liverpool City Council

• Electric panel heaters installed by landlord

• Appeal to RPTS – determined that heating system

provided was satisfactory

• LCC appealed to the Upper Tribunal who concluded that

the RPTS were in error

“…occupiers could be deterred from using a

heating system by the cost of running it…”

• The costs of running a heating system are relevant, but

only in the ways identified by the Upper Tribunal

“Occupier could be deterred from using a heating system by the

cost of running it, just as he might be deterred

from using it effectively by the difficulties in

operating it”

RESEARCH FINDINGS:

Local authority plans for MEES and integration with HHSRS

MEES: Uncertainty over enforcement

• EPCs are enforced by trading standards

• HHSRS is enforced by housing

• Many councils still unclear how MEES enforcement will work

• Some say it will be Trading Standards but working closely with Environmental Health (trickier in two tier councils); others that it will be Environmental Health/Housing.

“I can understand the links with EPCs, but it would sit better in our team.”

“I have only just today had some feedback from legal and it's not clear who will be the enforcing authority.”

What will lead to MEES enforcement action?

• Most councils don’t yet know

• Most did not have plans to identify properties that don’t meet MEES. Many were not aware of what data they hold or what they could access

• Some had raised awareness of MEES through the local landlords forum and in landlord newsletters – though many said nothing was happening on this yet

• A few councils know where there are F and G rated properties

Raising awareness

• Some had raised awareness of MEES through the local landlords

forum and in landlord newsletters – though many said nothing was

happening on this yet.

• One council had commissioned some work to identify F and G rated

privately rented properties. Mailshot to 900 homes planned.

• One council holds SAP data but doesn’t know which properties are

privately rented.

Case study - Cornwall Council• 4,500 F/ G rated privately rented properties in Cornwall

• Responsible Landlord Scheme offers a route to engagement

• Initially, council will provide advice and assistance to landlords

• From October 2018:

• Enforcement approach to properties not exempted & known to have created a tenancy.

• Will check MEES exemption data to see whether reasons are credible (30 so far)

• Hope to introduce assistance for landlords seeking to improve their properties

• Currently looking at how to align council tax & benefit data to identify PRS,

cross checked with EPC data (F & G) & tenancy deposit information

Case study – Thurrock Council

• The council plans to identify privately rented properties that do not meet the minimum MEES EPC rating of utilising open access EPC data

• The council plans to work with its energy partners to try to secure funding to offer to landlords to help them comply with MEES

HHSRS and MEES integration

• Lack of clarity or guidance on how the two should work together

• Risk of this area could become increasingly confusing and that preparing for implementation of the legislation will take a lot of time

“If there is a problem at a property relating to Excess Cold, we could argue to use HHSRS instead of MEES as it's Excess Cold not SAP. Some guidance or examples of how they would work together would be fantastic.”

“It’s taking a lot of time for local authorities when you already have lots of regulations -HHSRS/Housing Act, MEES, Housing and Planning Bill, Fire Safety, Carbon Monoxide etc etc. It’s becoming a bit piecemeal.”

RESEARCH FINDINGS:

Policy recommendations

Overarching recommendations

• Resourcing

• Joined-up approach

• Benefits to landlords

• Continue to restate the long-term trajectory of the regulations

Recommendations for central government• Ensure HHSRS and MEES are implemented alongside wider powers:

• Guidance on how to use HHSRS and MEES together.

• Using HHSRS where an exemption has been lodged.

• Requiring EPC information to be collected as part of HMO and selective licensing.

• Raise the profile of improving energy efficiency to landlords

• Support local government in the identification of sub-standard properties

• Clarify the relationship between minimum housing standards and the use of grant funding and fiscal incentives

Recommendations for central government

• Consider how to overcome the challenges of flats

• Require minimum standards when:

• Discharging homelessness

• For landlords receiving housing benefit

• Raise awareness of HHSRS and MEES

• Update HHSRS Operating Guidance:

• Health and energy statistics

• Define affordability and review significant FTT decisions

Recommendations for central government

• Support local government in MEES

• Consider the impact of exemptions:

• Cost cap

• Exclusion of HMOs

• Exclusion of Listed Buildings

• Ensure enforcement of EPCs

• Nationwide landlord licensing scheme/register

• Promote whole house approaches (including ventilation)

Recommendations for regional/local government

• Regional government:• Create working groups to share best practice

• Provide access to regional and local information on housing conditions and health outcomes

• Local government: • Use data to identify sub-standard properties

• Enforce EPCs (including transferring delegation to EHOs)

• Investigate where grant funding is refused

• Promote the PRS within ECO Flex

• Engage with stakeholders

• Brief elected members

Recommendations for landlords, tenant advice services and the energy efficiency sector• Landlords and associated bodies, lettings & managing agents:

• Consider the benefits of energy efficiency and raise awareness

• Commission post installation EPCs

• Offer advice to prospective and existing tenants

• Tenant advice services:

• Raise awareness and work with local government enforcement teams

• The energy efficiency sector:

• Prioritise action in the PRS and develop propositions

• Raise awareness and work with local government enforcement teams

www.cagconsultants.co.uk

Tim MaidenPartnerCAG Consultantstm@cagconsult.co.uk

Emma JonesPartnerCAG Consultantsej@cagconsult.co.uk

Kelly GreerResearch DirectorAssociation for the Conservation of Energy (ACE)kelly@ukace.org