Tenants to lose rent allowance for ‘non-green’ properties

TENANTS living in rented accommodation which does not meet new energy efficiency standards are to lose their rent allowance.

Energy Minister Eamon Ryan insisted the regulations to be introduced before the end of the year will force landlords into upgrading their properties into warmer and cleaner homes.

Under the plan, leased flats and houses that do not meet set standards on the Building Energy Rating system will no longer be eligible for relief.

The move is one of 90 measures in the National Energy Efficiency Action Plan, published yesterday, designed to significantly cut Ireland’s energy use by 2020.

Rent allowance was paid to more than 74,000 people last year, up 15,000 on the previous year. The projected cost for the scheme for 2009 is €461 million.

Mr Ryan insisted by targeting the tenant allowance, landlords will be pressured into carrying out the work, such as retro-fitting insulation.

“The rent allowance is very significant, several hundred million euro the State is giving out every year. So it is right that we should insist that we are going to have a good standard of accommodation with it.

“We are going to require those landlords to improve their buildings, cut back the fuel bills and cut back our overall use of fossil fuels and our emissions.”

Tenants can claim as much as €1,600 a year in rent relief, and under the new regulations, will only be able to claim this if the property is deemed energy efficient.

Mr Ryan said his department will be finalising the details over the coming months to allow building energy assessors to test properties registered for rent relief.

There are several hundred thousand properties that have no insulation or proper energy efficiency measures, he said.

The minister accepted there were slum properties most in need of improvements, which may not be registered for relief, but said the Government would act immediately on registered properties.

The energy efficiency plan is designed to significantly cut Ireland’s energy use by 2020. Its targets include:

nA 20% reduction in energy use in private properties.

nA 33% savings in all public buildings, including schools, hospitals, Garda stations, state and government buildings, over the next 11 years.

Mr Ryan said the scheme will create 4,500 jobs over the coming years and ultimately save the economy €1.6 billion every year from 2020 onwards.

International energy efficiency expert Amory Lovins, chairman and chief scientist of the Rocky Mountain Institute, who co-launched the plan, said it would give Ireland a leading role among other countries in driving efficiency. “I would say with this plan you are near the front of the pack in setting the right framework.”

Mr Lovins said further measures could be added, such as a car fuel-efficiency fees and rebates system similar to France, that could make it even more successful.