Barriers to Uptake of the Green Deal Understanding the Different Types of Tenure/Ownership

Domestic GDA Training – 9. Barriers, Fuel Poverty, Tenures… 1Training Material © Stroma Certification 2014 | Version 1.3

ABBE Level 3 Diploma in Domestic Green Deal Advice9. Barriers, Fuel Poverty, Tenures, and Reasons to Act

① Barriers to Uptake of the Green Deal

② Understanding the Different Types of Tenure/Ownership

③ Affordable Warmth/Fuel Poverty

④ Reasons to Act

Presented by


Barriers to uptake of the Green Deal


Psychological Barriers

• Norms• Inertia• Cost• Hassle• Beliefs about outcomes• Salience• Energy literacy• Ego

‘Neither sermons nor silence’



NormsMany people don’t want to be first adopters or ‘guinea pigs’ in taking up new energy schemes and technologies.

InertiaPeople discount the future, preferring a smaller reward today than a larger reward over a longer period of time. So offering small savings on energy bills over a long period is not a sufficient incentive for many. Research has shown that 66% of consumers are not fully confident that their home is as energy efficient as it could be and 47% are unaware how thick their loft insulation is. However 70% don’t plan to improve the energy efficiency of their home in the next 3 years.



Cost‘Pay as you save’ pilots experienced drop out due to concerns about entering into long term financial commitments. 20% of people see uncertainty about costs on their energy bill as one of the “less attractive” features of the Green Deal.

HassleHouseholders face burdensome actions, such as clearing their lofts. Even practical help cannot entirely overcome this which is one of the reasons many ‘pay as you save’ pilot homes dropped out. 31% of people see the hassle and disruption of making improvements as one of the “less attractive” features of the Green Deal.



Beliefs about outcomes36% of respondents to a survey had not installed energy efficiency measures due to concern they might be less comfortable in their homes.

SalienceEnergy efficiency improvements are not high on most people’s priority list when thinking about how to spend money, even though it would save them money. 31% of people in one evaluation didn’t take up solid wall insulation, as they simply didn’t know it existed or didn’t see it as relevant to their lives. Making energy saving personally relevant is seen as a “primary challenge” of smart meter roll-out, as people are not aware of their energy consumption day to day.



Energy literacyLess than 50% of homeowners thought about running costs when making a purchasing decision.

EgoPeople across almost all segmentation groups, particularly higher earners, choose not to install energy efficiency measures due to concern that it will alter the look of their homes.


Affordability

Research shows that people are unable to act to implement energy efficiency measures because they cannot afford the upfront costs or they are unsure whether they can trust the quality of work.

Previous Government schemes have been too ‘top-down’ to take account of what consumers actually want - Not so with Green Deal


The Workmanship

The customer is also concerned about the work itself.

The Green Deal establishes a robust system stretching from the adviser who does a bespoke property assessment, to the measures recommended, to the installer who installs them and the Green Deal plan which establishes the finance repayments alongside appropriate customer service guarantees.

Each of these links in the chain is backed up by accreditation to give the customer the peace of mind.

In particular, all Green Deal participants will need to carry a Quality Mark so that customers can see they are accredited to the standards of the Green Deal Scheme.


Awareness

Finally and crucially, many people are simply not aware of the options. They do not know what could be done to their property or what difference energy efficiency could make to their bills.

Advertising campaigns have struggled to raise awareness effectively. However, the Green Deal changes the landscape. It enables consumers to choose suppliers which can be held to the standards of the authorisation schemes and to fund work using a new source of finance.


Understanding Opportunities

Opportunities for improvements include:

• Heating system replacement• Property renovation• Re-plastering• Extension• Moving house• Work associated with change of use• Accidental damage (water leak, wind damage)


Consequential Improvements

What are they?Consequential Improvements are energy efficiency improvements required by Regulation 17D of the Building Regulations 2000 Approved Document – L1B Conservation of Fuel and Power in existing buildings other than dwellings (2006 edition).

In short, they are improvement works which are required to be carried out in addition to the ‘Principal Works’, which means the work necessary to achieve the Client’s purposes in extending the building and/or increasing the installed capacity of any fixed building services.


Consequential Improvements


Example


Understanding the Different Types of Tenure/Ownership


Tenures

• Types of tenure.• The power of freeholders, leaseholders, commonholders and

tenants to make improvements.• The impact of renting.• Persuading the landlord to act.• The Landlords Energy Saving Allowance.• Compensation for improvements.


Types of Tenure

Tenure describes the legal status under which people have the right to occupy their home. The most common forms of tenure are:

•Home-ownership:• Leasehold (flats).• Freehold (mainly houses).• Commonhold.• Shared ownership.

•Renting: • Social rented housing • Private rented housing


Statistics on Tenure

In 2007 (in England):

14.7 million households owned their homes (of whom approximately 2 million are leaseholders).

3.8 million households lived in social rented housing.

2.7 million lived in private rented housing.


Regional Differences

There are regional differences in tenure across England.

London and the North East have the highest proportion of households living in social rented housing across all regions (24%).

•The South East has the lowest level (13%). However, across London less than half of households are now owner-occupied (49.5%). The capital also saw the largest regional fall in owner-occupation levels over the decade 2001-2011 from 56.5% to 49.5%. In Hackney, only one-in-four (26%) of households were owner-occupied. (Changes to housing tenure - evidence from Census 2011)


Average Energy Savings by Tenure

Source: English Housing Survey, Housing Stock Report 2008, CLG

The average SAP for private rented housing has overtaken that forowner occupied housing in recent years.


Tenancy

A tenancy is a contract between a landlord and a tenant that allows the tenant to live in a property as long as they pay rent and follow the rules.

Tenants rights include the right to live in a property in a good state of repair – the landlord should make repairs and maintain the property.

However the tenant does not have the right to ask the landlord to make improvements.

The landlord could be a Housing Association or a Council (social rented housing) or an individual or company (private rented housing).


Individual Tenure

Landlord’s Consent

If a property that is rented, written permission will be needed from the landlord giving consent to attach a Green Deal charge to the electricity meter.

The landlord’s written consent may also be needed prior to installation of the measures. Tenancy agreements should be checked to confirm what consents are required to make changes to the property.

In the private rented sector, from April 2016 private residential landlords will be unable to refuse a tenant's reasonable request for consent to energy efficiency improvements where a finance package, such as the Green Deal and/or the Energy Company Obligation (ECO).

Additionally it is unlawful to rent out a residential or business premise that from April 2018 does not reach a minimum energy standard (proposedto be set at EPC rating 'E').


Housing Act 1988

This is the law which governs the private rented sector. It covers the statutory rights and legal responsibilities for both landlords and tenants.

It is not the same as a tenancy agreement which is a legal contract between landlord and tenant stipulating conditions of the tenancy e.g. contract length.

The Housing Act stipulates what the conditions can and can’t be in the tenancy agreement.

It is important for both landlord and tenant to be familiar with the Housing Act because it stipulates their legal rights, which is extremely important to ensure both parties are treated fairly.

As an assessor you don’t need to remember each law, but it is important to remember the Housing Act exists so you can refer to it when needed.


The Impact of Renting…

Has split incentives between those who pay and those who benefit.

The landlord has little incentive to ensure building fabric or installed appliances and equipment are energy efficient, as they do not pay the bills.

Occupiers have limited incentive to invest in a building that they do not own (and need the landlord’s consent to do so).

Neither is sure of receiving a payback on their investment.

Private sector tenants are more likely to be in fuel poverty than those who own their own property or are in social rented housing, although the average energy rating for private renters is now higher than that of owner occupiers.


Fuel Poverty by Tenure


Persuading a landlord to act

The confidence the tenant feels about asking a landlord to make improvements to the energy efficiency of a property will depend on:

• How secure they feel about their tenancy.• The length of the tenancy.• The tenant’s relationship with the landlord.


It may help both the tenant and the landlord if they know about the LESA. This is a tax allowance available to landlords who undertake property improvements.

Individual landlords are eligible if they pay income tax on their earnings from a let.

Landlords with a registered company paying corporation tax on lettings profits can also claim.

The allowance is worth up to £1,500 and can be claimed if money has been spent on cavity or solid wall insulation, insulating the floor or hot water system, lagging the roof or draught-proofing the property.

The scheme runs to 2015.

Landlord’s Energy Saving Allowance


And If the Landlord Won’t Act?

The Health and Housing Safety Rating System (HHSRS) gives the local authority power to act if “Excess Cold” is identified as an issue.

A home without a fixed heating system (or only on-peak electric heaters) and no insulation is likely to come into this category.

A SAP energy rating of less than 35 is sometimes used as an indicator for this.

It is usually Environmental Health departments in local authorities that enforce it.

It applies to all tenures but it is generally in the private rented sector where it is used to require landlords to install central heating (or insulation).


Summary

The most common type of tenure in the UK is freehold. Freeholders have the greatest powers and incentives to make improvements to their property.

Those with leasehold have to get the landlord’s consent to make improvements but will gain the benefit.

Tenants need the landlord’s consent to make improvements but may experience little benefit due to the length of the tenancy.

Landlords have LESA incentive and they are not the ones paying the bills.

The local authority can take action to force a landlord to take action if ‘Excess Cold’ has been identified as an issue.

Tenants should have greater rights to request the landlord to install energy efficiency measures from 2016 onwards through the Green Deal.


Fuel Poverty/Affordable Warmth


Fuel Poverty

Definition of fuel poverty and affordable warmth:

• Incidence of fuel poverty.• Causes of fuel poverty.• The effect of fuel poverty.• Indicators of fuel poverty.


Fuel Poverty

Low Income High Cost (LIHC) indicator, offers an accurate measure of the problem of fuel poverty. Under this definition a household is considered to be fuel poor where:

• They have required fuel costs that are above average (the national median level)

• Were they to spend that amount, they would be left with a residual income below the official poverty line


Fuel Poverty


Affordable Warmth

Affordable warmth means a household is able to afford to heat their home to the level required for their comfort and health.

The lack of affordable warmth is known as ‘fuel poverty’.

Affordable warmth is the solution to fuel poverty.


Incidence of Fuel Poverty


Fuel Poverty by Region


Fuel Poverty – The Concerns


Fuel Poverty & Low Income


Expensive Fuel

There are approximately 4.3 million customers living in rural areas who are not on the gas network.

Estimates from 2008 suggest that households off the gas network typically had energy bills in the region of £1,700 per annum, compared to £1,000 for those with gas mains connections.

The problem is exacerbated by the fact that domestic heating oil and LPG suppliers often have minimum delivery amounts which necessitate large lump-sum payments. Yet paying for bulk deliveries in advance can be impossible for those on low incomes.


Fuel Poverty: Rural Areas


Fuel Poverty: Single Person Households


Housing Disrepair

A home that is inadequately heated is likely to suffer from condensation, dampness and mould growth.

It is harder to heat a damp home, meaning more needs to be spent on fuel exacerbating the problem.

A household in fuel poverty may not have the means to pay for repairs – or have a landlord who is unwilling to take remedial action.


Fuel Poverty: Effect on Health

Cold Person:• Coughing• Allergies• Asthma• Depression• Strokes• Heart Attack• Respiratory Illness• Hypothermia

Cold Home:• Condensation• Mould• Mites• Damp


Temperature and Health

Indoor temperatures 18-24C (64-75F): no threat to health

Below 16C (61F): reduced resistance to respiratory infection

Below 12C (54F): increase in blood pressure and blood viscosity

Below 9C (48F): after 2 or more hours, deep body temperature fails


Fuel Poverty – Observable Indicators

• Asthma or wheezing• Home too cold/draughty/damp/only partial heating• Damp smells• Evidence only parts of house in use• Housing in poor condition/mould/rot• Occupants unhappy – depression, fatigue• Occupants wearing lots of clothes indoors• Use of supplementary heating• Curtains closed in day time


Fuel Poverty – Observable Indicators

• Pre-payment meter• Fuel bills seem high• Heating in disrepair/dangerous• Lack of draught-proofing or improvised (gaps stuffed with rags,

paper)• Ventilation blocked• Damp patches or mould on walls, ceilings, around windows • No fixed heating


Fuel Poverty Help

In Wales:• NEST will be the Fuel Poverty scheme, which will commence from the

2013-14 financial year• Until then EST and Carbon Trust will handle grant arrangements• Wales will have different support mechanisms- which are to be confirmed

Scotland:• The Energy Efficiency Package offers help to qualifying private sector

households (owner occupiers, private rental tenants) to cover the cost of home insulation and central heating. The EEP is managed by the Energy Saving Trust in Scotland and replaced earlier programmes known as Warm Deal and the Central Heating Programme

http://www.energysavingtrust.org.uk/scotland/Take-action/Grants-and-offers/Home-Energy-Scotland/Energy-Assistance-Package





Fuel Poverty Help


Summary

Fuel poverty is a serious issue affecting 4.5m households across the UK 2008).

As fuel prices rise, more households are affected by fuel poverty.

Fuel poverty can have a serious effect not only the fabric of the building (e.g. damp) but on health and quality of life.

It is a complex issue but improving the energy efficiency of the home (through schemes such as Warm Front) can make a major difference.


Reasons to Act


Condensation is a problem which causes damage to the inside of our homes and can cause ill-health problems in some people. Houses with condensation are difficult to keep warm. This is because when building materials are wet they lose heat faster.

Condensation


What is Condensation?

Activity Water Vapour

Breathing (asleep) 0.3 kg

Breathing (awake) 0.85 kg

Cooking 3 kg

Personal Washing 1.0 kg

Washing and Drying Clothes 5.5 kg

All air contains an amount of water vapour. The higher the air temperature, the more water vapour it can hold.

So when air carrying water vapour comes into contact with a cold surface and cools, it now has to lose some of the water vapour as droplets on the cold surface.


1. Rising damp2. Condensation dampness3. Rainwater penetration4. Plumbing problems

Damp in the Home


This type of dampness occurs at ground level where water is being soaked up the wall. It is usually defined by a tide mark across the wall containing salts.

To fix the problem of rising damp you should install a damp proof course (DPC).

A DPC is a physical measure often made from rubber, lead, bitumen or chemical solution.

Rising Damp


Rising Damp


Rising Damp


Rising Damp


Rising Damp


Condensation tends to occur in rooms where large amounts of moisture are produced such as kitchens, and on cold surfaces in other rooms.

This type of damp does not form well-defined patches like other forms of damp, and the problem will generally get worse during cold spells.

Condensation Dampness


Condensation


Condensation


Condensation


Rainwater Penetration

Rainwater penetration occurs when there is a problem with the external skin of the building either in the walls or roof. This could to due to poor pointing, cracked render, blocked gutters and problems with the roof. In the case of cracked render you will see well-defined patches which may be located some way from the source due to the water travelling.








Plumbing Problems

Dampness caused by plumbers can be caused over a period of time due to a small leak or very suddenly due to a burst pipe.

In most cases it will give rise to localised areas of damp close to the source, but as water can travel it is not always the case.


Where does Condensation Occur?

• Cold surfaces such as single glazed windows.

• Kitchens and bathrooms.

• Walls of unheated rooms.

• Cold corners of rooms where two outside walls meet.

• Wardrobes, cupboards, behind furniture and against outside walls.


To avoid condensation:• Reduce the amount of moisture produced in the home.• Provide appropriate ventilation.• Increase the internal temperature of the dwelling. • Insulate the home to warm up cold surfaces and retain heat.

Condensation Avoidance


Inadequate ventilation will mean that moist air cannot escape and condensation will occur.

A suitable level of ventilation without causing draughts and making the room cold is hard to achieve, but achievable through the correct measures such as:

•Air bricks•Trickle vents•Ventilation systems

Ventilation


Condensation is most likely to be a problem in homes which are not heated to an adequate temperature.

This could be due to the inability of the space heating to provide adequate heat, or it could be due to the cost of the heating.

Adequate heating is important as it warms up the air allowing it to hold more moisture and it warms up the internal surfaces of the walls.

Space Heating


Insulation is important when it comes to condensation as it will:

• Warm up the surface temperatures of walls, ceiling and windows.• Retain heat within the home.• Reduce occupiers’ fuel bills, enabling the home to be heated to a suitable level without the cost implications.

Improving Insulation


A dehumidifier is an electrical device which is designed to reduce the amount of water vapour in the air.

It does this by passing the air over a cold metal coil in doing so the air condenses and the water drips into a collector.

They are not ideal for use in homes which are poorly heated, which makes them less than ideal as most homes with condensation are poorly heated.

Dehumidifiers


Dehumidifiers

• Residential sized dehumidifier £130.

• Moisture absorbers utilise silicone granules which absorb moisture.

• mini absorbers are noiseless and require no electricity or batteries. £5 - £15.


Whole house ventilation is a system which ventilates the house in a continuous cycle.

Air is removed from the loft space, filtered and then introduced back into the house at low levels.

Mechanical ventilation systems can reduce moisture levels to a point that assists in the reduction of condensation and dampness.

Mechanical Ventilation


Questions?


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Contacts

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Barriers to Uptake of the Green Deal Understanding the Different Types of Tenure/Ownership

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