Clause 40 - Power to make domestic energy efficiency regulations: England and Wales

Part of Energy Bill [Lords] – in a Public Bill Committee am 12:30 pm ar 14 Mehefin 2011.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Graham Jones Graham Jones Opposition Assistant Whip (Commons) 12:30, 14 Mehefin 2011

I rise to echo the arguments made by my hon. Friend the Member for Liverpool, Wavertree. There are three key points in the amendment—one of the most progressive this Committee has dealt with—namely, information, cost to local authorities and consumer empowerment. On information, it is clear that a register of landlords will give the Government a huge advantage in pushing the green deal. I note the Secretary of State’s comments:

The Green Deal will be a revolution… The most ambitious energy-saving plan ever put forward.”

If he is to achieve that, he needs to reach out to those in the private rented sector and empower them. There is no better way to do that than to have a database of landlords, so that landlords can be aware of the benefits of the golden rule, the advantages that the scheme will give their properties and the advantages of the ECO. As things change and develop, if the Government have a register of landlords they will be in a far better position to meet their own target of work on 14 million properties completed by 2020. I read that figure somewhere; I will stand corrected if that is not the case.

At local level, a register would allow local authorities to deal with landlords in a progressive and positive way, and it would help them to roll out the Government’s programme. Local authorities will be key to the proposals, but they may be swamped by complaints or by having to deal with the worst cases that come through their doors. If we do not accept the amendment, we may be dumping a huge cost on local authorities, which will have to trace landlords in such cases. As someone who has worked in local government, I can tell the Committee that officers spend hours and hours trying to find out who a landlord is and trying to deal with the tenant at the same time. The landlord often cannot be found, because the property has gone through a letting agent or a management company; it is really difficult to trace some landlords. Without a register of landlords, the cost to the local authority will grow.

I am concerned, because it is fair to say that some local authorities in areas where there is a large private rented sector are facing some of the biggest cuts. Where  will the resources they need come from? A local register of landlords would be a cost saving to local council tax payers by enabling their authorities to deal effectively with private landlords and tenants who approach those landlords seeking assurances or pursuing complaints about the green deal. It would be an important step forward.

The third reason is consumer empowerment. There is an opportunity for local authorities to receive a commercial charge. I have mentioned organisations such as NetMovers and others, which are shameless promoters; they would be willing to pay local authorities for access to a register and database. I should have expected the Government to be on the side of consumers and to welcome consumer empowerment. If such information were made publicly available, consumers would have a much better choice as the private sector steps in to provide information about rented properties to potential tenants.

There is a clear consumer-driven argument why we should have a local or national register. I am sure that the private sector would be willing to step in to provide such information. At the moment, local authorities keep a lot of information on the private rented sector as well as registers of landlords, but such information is not holistic. It might contain just those who have been accredited, or who have been subject to enforcement action elsewhere. There are different lists with several silos of activities in which local authorities are engaged. The bringing together of such a register for the purposes of the green deal would allow local authorities to provide a better service and enable them to provide information to consumers. I have set out the three main reasons for such a proposal.

In E.ON’s submission to members of the Committee, it states that a key challenge for the private rented sector is

“to increase the market value of energy efficiency”,

so by empowering consumers, landlords will be put in a position whereby they must improve and approach a green deal provider and assessor. They will be put on the back foot when trying to compete in a market, so such a measure will increase consumer choice, as well as drive up standards and increase the energy value within the market value of a property. E.ON says that a register will

“provide additional incentives for landlords to make improvements to their properties”.

Although energy performance certificates do help, E.ON continues:

“the information provided is often not interpreted as financial savings by potential tenants”.

We get round that. This information would add to the market value and consumer choice. I expect the Government to be on the side of consumers, on the side of choice, on the side of private enterprise and on the side of the free market, so the third point, on marketisation and information to the general public, is the key.