Financial support should be given to Welsh homeowners to encourage retrofitting of energy-saving features such as heat pumps instead of boilers, upgraded insulation and improved ventilation.
So says the Welsh Parliament’s Climate Change, Environment, and Infrastructure Committee in a report on Decarbonising the private housing sector.
Public funding has been used to retrofit housing but so far, this has predominantly targeted social housing and households at risk of fuel poverty, according to the report. But this policy has left the majority of the 1.1m privately-owned homes in Wales without financial help to decarbonise.
Research by the Welsh School of Architecture estimates that the cost of a retrofit to reach Energy Performance Certificate ‘A’ standard would cost the average household between £17k and £66.8k; depending on the property type.
Reforming Council Tax and Land Transaction Tax should be part of a package of incentives to get homeowners to make their properties more energy efficient, according to the Senedd Committee.
The Committee is calling on the Welsh Government to look at using its tax-varying powers to incentivise homeowners to retrofit their properties to make them greener and – if implemented – this could see more energy-efficient homes paying less tax than those using more energy.
As any tax changes are likely to take years to come into being, the Committee is asking the government to begin its preparations urgently.
‘It’s long overdue for the Welsh Government to get to grips with the challenge of making houses in Wales more energy efficient’, said chairman of the CCEI committee.
‘Greener houses would not only be better for the environment but would also better insulate people against sky-rocketing energy prices. The focus on retrofitting households in poverty should be applauded, but if the Welsh Government is serious about reducing carbon emissions – and energy bills – they cannot continue to ignore the 80 per cent of houses which are privately-owned.
‘We know that financial support such as low or zero interest loans would encourage people to retrofit their properties. Welsh houses would emit less carbon and the taxpayer wouldn’t lose out in the long run either – a rare win-win’.
The National Landlords Association has been quick to give its support to the CCEI recommendations, saying that it is in line with its own concerns that the UK Government has failed to provide clarity about the energy efficiency standards that will be expected of the sector.
Recognising the important role that the private rented sector plays in meeting Welsh housing needs, the committee has warned that any changes to energy efficiency standards need to avoid having an impact on the availability of affordable, private rental properties, NRLA pointed out.
‘The NRLA welcomes today’s report. Whilst we all want to see properties as energy efficient as possible, this needs to be backed up by a sensible financial package to support such work’, said chief executive Ben Beadle.
‘The committee is right to call on the Welsh Government to look at how to use the devolved tax powers it has to support energy efficiency improvements. We also share the Committee’s concerns that new regulations should avoid hitting the supply of much needed homes to rent in Wales.
‘We urge the Welsh Government to consider the report’s recommendations with the seriousness it deserve’.
