Targeting lower income landlords to retrofit rental properties would be the best use of the government’s Warm Homes Fund, according to the Committee on Fuel Poverty.

Up to £600 million will be used to support low-income households in the push to creating more low carbon homes, but the independent expert advisory body warns that handing it to owner occupiers in fuel poverty would not be money well spent.

Ministers are still considering whether funding should be grants, loans or both, who should be eligible and how the fund can help deliver future EPC standards.

In its response to a government consultation, the committee says finding the right groups is key and that targeting lower income landlords so they can reach Minimum Energy Efficiency Standards would enable retrofit work to be completed that may not otherwise have been possible.

Work

“Specific work should be undertaken to make it properly focused, well targeted and made accessible to the right landlord groups - such as those with lower incomes, who may need support accessing finance - if it is to have a meaningful end state impact for fuel poor tenants,” the committee explains.

It believes the fund should consider allocating resources to encourage private landlord engagement and look to develop targeted, bespoke incentives. “The private landlord audience is a fragmented one, and simplicity and clarity are key to cutting through.”

The committee believes that the fund is unlikely to have a significant impact on owner occupiers in fuel poverty, and that there could be adverse consequences if it were to be actively targeted at them. “Fuel poor homes already underheat their homes and typically take the benefit of improved energy efficiency in increased comfort, supporting better physical and mental health. This demographic is not well placed to take on additional debt or repayment commitments, and it is difficult to see how any traction or scale could be achieved in this sector.”

Its comments follow the NRLA’s response to the consultation, in which the landlord group says landlords would need support as well as funding to hit ambitious EPC C targets. It suggests lenders should be encouraged to develop products created specifically for properties with lower EPC ratings, while finance models are needed that combine private investment with grants and tax incentives.

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