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A recent BBC news story detailed plans in England and Wales requiring landlords in Wales and England to give tenants summaries of the energy efficiency and carbon emissions of rental properties. Energy Performance Certificates evaluate a range of factors, including everything from drafty windows, the quality of insulation, and HVAC performance. Awarding a score from A to G (with most buildings currently in the D range), the system givers potential renters a quick overview of efficiency and expenses, and allows them to factor energy costs into the decision making process along with rent and subjective considerations such as location.
Officials in the Communities Ministry hope that this regulation will serve as a form of moral suasion. While the regulation included a fine for noncompliance, the threat of renters turning up their noses at poorly rated properties has the potential to force landlords to either reduce rents or allow apartments and houses to stand empty, providing a financial prod to participate in the program. The National Landlords Association agrees, stating that the threat of empty properties will encourage owners apply for certificates and begin upgrades quickly. Fortunately, the assessment process includes suggestions for improvement and an analysis of costs and low-term financial effects of improving energy efficiency.
The rental property rating program stands as part of a larger program to encourage efficiency and sustainability in architecture and household management. Similar regulations require anyone wishing to sell a home to provide information on energy efficiency, and beginning in October 2008 all new buildings must participate in the program. and a plan to mandate the evaluation system for all new construction.