---

Energy Bill [HL]

I shall speak also to Amendments 71 to 75, 77 to 79 and 84, and the comments I make will also be pertinent to Amendments 81 to 83, which are in the name of the noble Lord, Lord Best; they also have my name to them. When I saw this Bill, I was delighted to see that the private rented sector was to be included. As time has gone on, I am not quite so delighted with how far we have got on the private rented sector. What I aimed to do in Committee and reiterate here is to have greater certainty about what sort of regulation we are going to have and when it might come in, and to bring the timetable forward. The amendments bring forward to 2020 the Government’s measures for local authorities to issue notices to landlords requiring relevant energy efficiency improvements, and make it a duty rather than a power. They remove its conditionality on the outcome of the review in Clause 36. Landlords receiving a notice from a local authority will be required to improve that property at least to a minimum energy efficiency level of EPC band E, and this level will be increased before 2020. The maximum penalty for non-compliance is increased to £10,000 per tenancy, and local authorities are given the option to carry out the improvements themselves and then impose a charge to recover the costs. From 2016, a minimum energy efficiency standard is introduced whereby it becomes an offence to let or market a domestic private rented property which falls below EPC band E—that means those in F and G—until it is improved to band E, and the minimum standard must be raised again before 2020. A fine of £10,000 can be imposed for marketing or letting a property which does not meet the minimum standard. There has been a lot of discussion about this. Some landlords, the British Property Federation and the RLA have produced briefings that claim that lots of properties would be taken off the market. Given the situation in the housing sector at the moment, I think that is highly unlikely. The latest edition of Landlord & Buy-to-Let Magazine states: "““Landlords are faced with excellent levels of tenant demand, strong pricing power … and improving buy-to-let mortgage conditions and are looking towards 2011 with confidence””," so I think that is one thing that can be knocked on its head. It is important to look at the details surrounding this sector. According to the Government’s figures, properties rented from a landlord or a letting agency are most likely to be the worst insulated, and 42 per cent of tenants in the coldest rented homes are unable to afford to heat them properly and are defined as being in fuel poverty. New research by the Energy Saving Trust reported today shows that the average cost of improving the coldest rented homes is £2,535 and that 30 per cent could be improved for less than £900 through rather cheaper measures such as loft and cavity wall insulation. Only 5 per cent would cost more than £7,500. A poll by Friends of the Earth found that tenants renting from a landlord or through a letting agency faced the worst during the freezing snowy weather this winter, with half saying that they were uncomfortably cold in their home and a third turning off their heating because they were concerned that they could not pay the bill. There are 754,000 F and G-rated—that is, below E —private rented properties in Britain. They could all be improved for less than £2 million. The average cost would be about £2,500. The annual fuel bill reduction would be something like £370 million and the average fuel bill reduction could be a little under £500. The annual report by the Chief Medical Officer, Sir Liam Donaldson, for 2009, which was published in March last year, showed that people living in poorly heated housing live in great danger. Old, badly insulated properties offer significantly less protection against the risk of cold than more modern buildings. The annual cost to the NHS of treating winter-related disease due to cold in private housing is £859 million, although that is all private housing, not just the private rented sector. This issue has been around for a long time. There is an issue about when and when not to regulate but, as I said in Committee, we are looking at the worst of rented properties. Most would not cost a lot to bring up to a proper level. A large percentage of people living in those properties are in fuel poverty, and this is one case when I really think we need to bring in some sort of regulation. We have been talking about trying to improve them for years, but nothing has happened. My final point is that many people living in these properties are being paid for by taxpayers, who are paying huge amounts of housing benefit. Given where we are at the moment, I do not think we can go on doing that much longer. All the time I have been in Parliament, I have been trying to make sure that we have fewer people living in cold homes in the winter and fewer excess winter deaths. Even if the Minister cannot do anything today, I hope that he will promise that by the end of the passage of the Bill we will have more certainty that we are really going to do something about the private rented sector. I beg to move.