Select Committee on Communities and Local Government Committee Seventh Report


Conclusions and recommendations


1.  The amount of energy we use to heat and light our homes now needs to decline, and sharply, if carbon emission reductions from the housing stock are to contribute towards the 60 per cent reduction in emissions by 2050 to which the United Kingdom is committed. (Paragraph 4)

2.  There is clear consensus that the Government needs to engage as fully with reducing carbon emissions from the existing housing stock as it has with reducing those from new development. (Paragraph 7)

3.  The Government's understandable desire to build improvements into future housing has led it to give insufficient priority to action on the vast bulk of the housing stock represented by the 23 million homes already there in England and Wales. A much clearer focus on what must be done to bring existing housing up to required energy efficiency standards is essential. (Paragraph 9)

4.  We recommend that the Government measure the impact of including in the Building Regulations consequential improvements provision affecting homeowners in time to inform the next Building Regulations review. (Paragraph 15)

5.  We urge the Government to follow the lead set by Uttlesford District Council in requiring homeowners who extend their homes to make consequential improvements to the rest of their property as part of the planning consent process. We recommend that Part L of the Building Regulations be amended to require householders making substantial improvements, such as building an extension, to ensure that the carbon footprint of their improved home is at least no greater than before. (Paragraph 16)

6.  Following the successful introduction of the Code for Sustainable Homes, we recommend that the Government produce as a matter of urgency a similar Code for Existing Homes. We further recommend that that Code contain minimum performance standards, perhaps based on Standard Assessment Procedure ratings. These standards should apply to all housing stock, although differential ratings may be acceptable in the short to medium term, but no later than 2016, for social housing, privately rented stock and owner-occupied homes, all of which begin from different baselines. A separate standard might also be set, in the short to mid term, for housing constructed before 1919, which is currently the least energy efficient, but often most prized, in the United Kingdom. (Paragraph 19)

7.  We recommend that the Government include specific energy performance improvement standards in any social housing improvement programme that follows Decent Homes in 2010. In particular, we recommend that any future programme contain a specific minimum, rather than average, Standard Assessment Procedure target for all social housing. We seek the Government's view on the Local Government Association's suggestion that that minimum SAP rating should be 65. (Paragraph 26)

8.  We recommend that as part of the Government's review of the maximum grant available under Warm Front limited flexibility be introduced into the scheme to allow the maximum level of £2,700 to be disregarded in cases where the most vulnerable households would not receive sufficient assistance to heat their homes adequately and as efficiently as possible. (Paragraph 28)

9.  The Government should loosen restrictions on Warm Front eligibility to allow tenants living in HMOs to have works done on their homes. (Paragraph 30)

10.  While it is to be hoped that the supplier obligation to be established for the period from 2011 to 2020 may be able to concentrate more fully on carbon reductions alone, the significant rise since 2003 in the number of households spending more than a tenth of their income on heating their homes justifies the continued inclusion of fuel poverty reduction aspirations within the three-year Carbon Emissions Reduction Target being set in 2008. (Paragraph 40)

11.  The Government should take every step possible, including amending the Data Protection Act if required, to ensure that local authorities may use the information they hold to target households likely to be suffering from fuel poverty. It should also consider whether provision of data to appropriate third parties for the same purpose may be desirable and achievable. (Paragraph 42)

12.  We recommend that the Government consider introducing a new Code for Existing Homes. This could set a minimum energy performance standard for privately rented housing, aimed, in the short term, at improving the sector's overall energy performance to at least the significantly higher level achieved in the socially rented sector, and in the long term at delivering the kind of carbon reduction necessary if the national 60 per cent reduction by 2050 is to be achieved. The Government should also consider ways in which it might be possible to enforce such a Code, such as introducing it for Houses in Multiple Occupation or through the private sector licensing system. (Paragraph 44)

13.  We recommend that the Government seek to spread uptake of the Landlords Energy Saving Allowance, as recommended nearly two years ago by the Sustainable Development Commission. Information on the allowance could be more widely disseminated to small landlords through letting agencies and to all landlords via the landlord tenancy deposit schemes run across England and Wales. (Paragraph 46)

14.  A range of witnesses have pointed out the perversity of differential VAT rates that may in some circumstances make the demolition and reconstruction of a home more financially attractive than its refurbishment or renovation to a higher environmental standard. We recommend that the Government seek to remove this anomaly. (Paragraph 51)

15.  We commend Centrica's initiative in administering rebates through council tax and urge other energy suppliers to follow suit. We urge the Government to monitor the success of such schemes. (Paragraph 52)

16.  Having recognised that stamp duty reductions or rebates can incentivise energy efficiency improvement in new-build homes, the Government should apply the same logic to existing homes. Once again, the Government's emphasis on measures aimed at new development underestimates the carbon reduction contribution required from the vast bulk of the housing stock. We recommend the development of a scheme to provide stamp duty rebates or reductions for all home-owners who act on certain Energy Performance Certificate recommendations within a year of moving in. (Paragraph 54)

17.  Given the urgency with which we need to respond to climate change, the Government needs to find a means of disseminating Energy Performance Certificates more rapidly than can be done purely through a mandatory requirement at the point when a home is marketed for sale or for rent. Further 'entry points' for EPCs might include, for example, the points at which planning permission for major works is sought, or at which works are carried out under programmes such as Warm Front or the Carbon Emissions Reduction Target. (Paragraph 59)

18.  As Energy Performance Certificates contain guidance, rather than mandatory requirements for improvement works, the Government is relying on a mixture of information and incentives to encourage millions of householders to choose to make the improvements for themselves. We recommend that the Government work closely with the mortgage industry to provide market-based financial incentives, such as 'green mortgages', that will encourage new homeowners to undertake improvement projects within a short period of their occupying their property. (Paragraph 61)

19.  We recommend that Energy Performance Certificate ratings be included in all advertisements for houses for sale, as they are for fridges and washing machines, so that prospective buyers may be aware of them from the outset. (Paragraph 62)

20.  We recommend that the Government publish as soon as is practicable research on the extent to which Energy Performance Certificates are causing householders to undertake the works recommended within six months or a year of moving into new homes. We recommend that they publish as soon as possible the data gained from experience among owners of larger homes since EPCs were introduced on a limited basis in August 2007. (Paragraph 63)

21.  We welcome the use by the new Green Homes Service of the information contained in posted Energy Performance Certificates to target those whose homes are least energy efficient. This should help householders themselves to reduce their fuel bills and improve their living conditions while also contributing to overall carbon emission reductions (Paragraph 64)

22.  For the longer term, we recommend that the Government commission research into the idea of requiring householders to obtain a periodic energy performance rating. (Paragraph 66)

23.  Giving householders information on what might be done to improve the energy efficiency of their homes is only one half of the equation. They also need to know who can do the works, and more importantly given fears about costs, hassle and cowboy builders, who can be trusted to do them cost-effectively and well. We recommend that the Government set a mid-term goal for Energy Performance Certificates to provide information on approved builders, installers and engineers. (Paragraph 67)

24.  We recommend that the Government ensure private landlords, large and small, are fully aware of the requirement to introduce Energy Performance Certificates for properties marketed for rent from October 2008, in order to avoid any lengthening of re-letting periods at a time of housing shortage. We recommend that information be disseminated, for example, through letting and estate agencies and landlord tenancy deposit schemes. (Paragraph 68)

25.  The introduction of Energy Performance Certificates represents a substantial leap forward in the provision of home energy efficiency information. We encourage the Government to maintain the momentum likely to be gained from this by seeking continuous improvement in the quality of information provided to householders by EPCs. (Paragraph 69)

26.  The single biggest difficulty in spreading energy efficiency measures across the housing stock lies in engaging millions of individual householders. Allied with this is the problem that actions taken by individual householders are generally piecemeal and partial, particular to their own homes. Given the economies of scale and wider environmental benefits that may be achieved from a more holistic approach, we recommend that the Government consult local authorities on how area-based programmes for basic home improvements, such as cavity wall or loft insulation, might be offered across significant sections of the housing stock rather than, as at present, in one home at a time, and thereby carried out more efficiently and cost-effectively for households which wish to participate. (Paragraph 70)

27.  We welcome the creation of the new Green Homes Service from April 2008 and urge the Government to support its rapid introduction nationwide. The provision of a 'one-stop' source of information for householders is a significant step towards overcoming the 'information barrier' to quick, simple and cost-effective action in many homes. We urge the service to provide information on competent suppliers and installers, and to monitor and report on the effectiveness of the works carried out. We expect in the future to examine further how the introduction of the service both widens information and leads to real improvement in individual homes. (Paragraph 77)

28.  We welcome the forthcoming introduction of smart meters along with fuel bills that more comprehensibly tell householders just how much gas and electricity they use. We believe that suppliers should roll the meters out nationally as swiftly as can be achieved. The meters have a particularly important role to play in overcoming the information barrier that prevents simple, cost-free action in millions of households across the whole UK. (Paragraph 80)

29.  We recommend strongly that the provision of real-time display units must not become a proxy for smart meters and must not be allowed to delay the full roll-out of smart meters to every home in the country within a decade. (Paragraph 82)

30.  We recommend that the Government undertake research into the number of non-grant-supported microtechnology installations in the UK to provide an accurate picture of their spread and take-up. (Paragraph 89)

31.  We recommend that as part of its current review of financial incentives the Government investigate the potential for subsidising feed-in tariffs to encourage the uptake of home microgeneration technologies.' (Paragraph 90)

32.  We call on the Government to make an early assessment of skills deficits across the planning, construction and retrofitting industries, and to engage in dialogue with the construction industry on improving training in skills required for refurbishment and renovation of existing homes. We intend to return to this area in more detail later this year during our inquiry into Planning Skills. (Paragraph 94)

33.  The bulk of our housing, however old and leaky it may be, is capable of the kind of improvement that will deliver the necessary reduction in carbon emissions without destroying the visual character and appearance that makes it uniquely ours. We need neither a mass demolition programme followed by the construction of replacement Eco-homes nor to preserve every last pre-1919 building precisely as it was on the day it was built. The trick will be to find imaginative solutions as new markets and skills develop to bring new ideas and technologies to homes in which the "low-hanging fruit" of draught exclusion and insulation has already been plucked. (Paragraph 102)

34.  Reducing carbon emissions by 60 per cent over the next 42 years requires remarkable change in our habits, our fuel consumption and the technologies we use to build and run our homes. Yet even the most superficial glance back 42 years is enough to remind us that interplanetary space travel, mobile telephones, the internet, and even heart transplants were then yet to be achieved. The question underlying this Report is whether the Government can encourage millions of individuals and families, be they in rented flats or homes of their own, to rise to the challenge; but it is, indeed, unimaginable to say that we cannot make substantial change. (Paragraph 103)


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2008
Prepared 2 April 2008