Identifying policy solutions for improving the energy efficiency of rental properties

Abstract

World leaders have acknowledged that climate change is one of the biggest challenges we face in the 21st century and have committed to pursuing efforts to limit warming to 1.5 degrees above pre-industrial levels (UNFCCC, 2015). To do this, further efficiencies in energy use are needed across all sectors, many of which still offer considerable potential for improving energy efficiency. Rental properties in particular, have seen very few improvements in energy efficiency due to a range of barriers and market failures including misinformation, split incentives and an uneven power dynamic between renters and landlords. This is important as not only do rental properties account for a significant proportion of housing stock, the high proportion of low income households in rental properties are particularly vulnerable to rising energy prices. This study aimed to identify feasible policy solutions for overcoming the barriers to energy efficiency improvements in rental properties. Renters, landlords and agents were presented with five possible solutions to determine their level of support. Eight key recommendations for overcoming the barriers to energy efficiency improvements in rental properties are provided. These create a foundation for policy makers, councils and businesses to develop and target energy efficiency solutions for rental properties.