Energy Bill [HL]

My Lords, I am grateful for these amendments, which aim to set a minimum energy efficiency standard for the private rented sector. As a result, Amendments 20R, 20S, 20T and 20V would set a minimum energy efficiency level of EPC band E for the domestic private rented sector. I hope that this deals with one of the questions asked by the noble Baroness, Lady Smith. Amendment 20X would require the Secretary of State to make at least one increase to this minimum standard between 2016 and 2019. The EPC is a key factor in this. First, I can reassure the House that our provisions in Clause 37 already target the worst performing properties. Our intention is similar to that of the amendment—that properties below a band E rating would be targeted under the local authority enforcement powers. Secondly, and most importantly, we are achieving this without setting a minimum standard that could be viewed as a barrier to new landlords entering the market. That is very important. The private rented sector is an increasingly important part of responding to our housing challenge. Yet evidence suggests that there is currently a shortage of supply, which is illustrated by increasing rents. We are trying to plot a pragmatic and sensitive course here. I believe that the provisions are drafted to achieve this balance. Amendment 20YA would remove an important safeguard for property owners. While we do not believe that improving a property’s energy performance will result in a negative impact on its value, it is only right and proper that we provide owners with that reassurance. I agree with my noble friend Lord Dixon-Smith and the noble Baroness, Lady Smith, that it is unlikely. There could be solid wall installations, for example, which do not enhance the value of an old property, but that would be pretty rare. Amendment 20U proposes a national or local register of domestic private rented properties. On 10 June, the Housing Minister stated that the Government have no plans to create a national register of landlords, although he will keep that position under review. I am, however, aware that local authorities are initiating local lists of this type of property where they deem that such lists are of benefit in their areas. My noble friend Lord Dixon-Smith made the good point that some landlords are the local authorities. Amendment 20RA would provide that the Secretary of State must make regulations requiring local authorities to issue a notice to landlords of domestic private rented properties requiring them to make such improvements as are identified in the notice. If regulation is required, it is our intention clearly to set out provisions requiring local authorities to issue a notice to landlords requiring them to make the necessary improvements. Finally, Amendment 20W would appear to create an incorrect cross-reference. It proposes deleting ““subsection (5)”” and inserting ““subsection (6)””. I hope that that acts as an explanation. I was asked about whether it is the landlord who must make improvements to a property. Under Clause 37, the requirement is on the landlord, but tenants can request that the landlord take action. I was asked: what if the property is vacant? That is not covered by a definition. No action is required until the property is re-let, after which the action will take place. In summing up, I would invite my noble friend Lady Maddock to withdraw her amendment. Her amendments are extremely valuable and I am very grateful to her for presenting them to us.