Tenant Survey pt.2: Energy bills and efficiency
Introduction
The second part of the tenant survey conducted in July and August of 2022 takes a deeper look at utility bills, government support and energy efficiency.
An independent market research company (Dynata) undertook the market research, the NRLA drafted the survey. Over 2,000 tenants took part all of whom were tenants in the PRS.
A select few were lodgers, whilst a handful were living with friends or family. Most however rented from one of three groups:
- An independent landlord (or couple).
- The corporate or company sector.
- Rented through a letting agency.
The first post from the survey can be found here.
Utility bills and government support
Rising costs and utility bills is a cause of major concern for both landlords and tenants with energy prices predicted to remain sky high for the foreseeable future. Despite the price cap set by the government, energy prices have doubled over the past year.
The government announced a £400 energy bill rebate which began to be rolled out in October. This would be granted to individuals who are named as the bill payer. At the time of the survey there was no specification stating landlords would be legally required to pass this discount on to tenants who have bills included in their rent.
What about those tenants who have bills included in their rent?
Whilst at the time of the survey there was no specification stating tenants would legally be entitled to receive this discount, the government has since set out plans to ensure it is mandatory for landlords to pass on the £400 discount onto to tenants who have bills included in rent.
Of the total number of tenants surveyed, 15% had at least one of gas and electricity included in their rent. This group were asked about the energy discount.
- More than 54% of tenants in this group had not had any discussions with their landlords at the time of the fieldwork (the survey was undertaken in August) about whether they would receive any of the £400 discount.
Among those that had spoken to their landlord:
- Almost two-thirds (64%) have been told they would receive at least some of the money either as cash or a rent discount.
- Just 10% of tenants (ie a handful) who fall into this group and have discussed concerns about their forthcoming bills were told by their landlord they would not receive any of this rebate.
Have tenants been discussing concerns about rising utility bills with their landlords?
All tenants, including those responsible for their own bills were asked whether they had contacted their landlord regarding concerns about their ability to meet gas and electricity costs.
- Most tenants - 70% - stated they had not had any discussions so far.
- Just 9% of tenants had had discussions with 18% stating they were planning to discuss “in the near future”.
- Another 2% of tenants stated their landlord had approached them for a discussion. That
Tenants who had spoken with their landlord were asked about what measures or support were made by the landlord. The most commonly agreed interventions were:
- Offer to improve the energy efficiency of the property.
- Temporary rent reduction.
- An offer to help meet the financial cost of the bill.
- The landlord agreeing to a switch either to or from a pre-paid meter.
Almost one-in-five tenants (19.3%) of tenants had arranged to discuss potential support later in the year.
(Note: multiple responses were allowed for this question)
A handful number of tenants (just three) reported that they were told that their rent would be increased following these discussions. That this number is so low illustrates that most landlords who have had a conversation with tenants are trying to sustain tenancies. This may be through either mitigation, or else more simply by absorbing at least some of the costs.
Energy efficiency
Against the backdrop of the government’s commitment to reach net-zero by 2050, energy efficiency and housing is rising up the political agenda. From the perspective of tenants, those who have energy inefficient properties will bear a more onerous financial burden.
Tenants were asked how satisfied they were with the energy efficiency of their rented property.
57% stated they were satisfied with the energy efficiency of their property
Would tenants be willing to pay a higher rent for a more energy efficient home?
Demand for energy efficiency improvements among tenants who rent privately is low.
Only a small proportion of tenants surveyed (22%) reported asking their landlord to make improvements to the energy efficiency of the property. When requests are made, tenants generally find landlords responding positively; only in a handful of instances did tenants report negativity.
Summary
The findings demonstrate that when conversations have been had regarding tenants’ ability to meet rising utility bills, landlords have been willing to engage and look for positive solutions.
Too few tenants have engaged with their landlords on energy efficiency. Where they have landlords have generally been positive in trying to find a solution. Tenants concerned about energy bills really should speak with their landlord to discuss options
As Winter 2022-23 approaches, it is likely that concern over rising utility bills and tenants’ ability to mee them will rise. In contrast to how landlords are often presented in the media, they are showing themselves to be flexible and offering support to tenants. But with interest rates and costs rising, it would be a stretch to say this provides a sustainable solution.
