The scale of the issue
With six million UK households struggling to afford to heat their homes this winter, fuel poverty is a growing crisis that threatens both tenants and homeowners. Propertymark has long advocated for incentives and realistic, tenure-blind funding for property upgrades to see more energy-efficient homes, lower bills, and reduced emissions across the property sector. Therefore, we welcome the Executive’s long-term commitment to addressing fuel poverty, aligning it with decarbonisation goals under the Climate Change Act (Northern Ireland) 2022.
Northern Ireland differs from the rest of the UK because it is part of a different energy market (shared with the Republic of Ireland), and most homes use oil heating. Figures collected by National Energy Action in 2023 suggest that 41% of households are in fuel poverty. 56% of people living in the private rented sector say that the health and wellbeing of someone in their household has been impacted by rising energy prices and the cost of living.
Balance ambition with pragmatism
Propertymark urges the Executive to adopt a realistic and fair timeline for implementing Minimum Energy Efficiency Standards (MEES) in Northern Ireland’s private rented sector. Lessons must be learned from England and Wales, where landlords have had more time to meet MEES obligations.
Additionally, financial support must be provided to landlords to meet new standards. The UK Government is considering raising the cost cap for landlords to meet new EPC targets from £3,500 to £15,000 in England and Wales, a figure that may be prohibitive in Northern Ireland, where average house prices are significantly lower. Propertymark urges the Executive to introduce a cost cap that reflects local property values.
Similarly, whilst we are open to increasing levies on electricity and gas bills to fund energy efficiency schemes, these must be set at a level that does not disproportionately impact low-income households.
Targeting the least energy-efficient homes first
Homes with the lowest EPC ratings (D to G) should be prioritised when allocating funding, so the focus is on improving the worst-performing homes first rather than basing eligibility solely on income, which could raise privacy concerns and discourage participation.
We agree that insulation and energy efficiency improvements to the structure of buildings should be prioritised before installing heating systems or renewable technologies. Ensuring homes retain heat efficiently is the most effective long-term solution to reducing fuel poverty.
Supporting vulnerable tenants and landlords
Fuel poverty is a major concern for the private rented sector. Tenants struggling with energy bills can fall into rent arrears, putting their housing security and landlords' investments at risk. Propertymark strongly supports measures that ensure vulnerable tenants receive assistance, reducing the likelihood of eviction and ensuring stable rental markets.
While the consultation suggests landlords should take out loans to fund improvements, Propertymark recommends that grant funding be the priority for the worst-performing properties, particularly those housing vulnerable tenants. A model like Scotland’s Private Rented Sector Landlord Loan Scheme, which offers interest-free loans, should be considered.
Rural and off-grid properties need special attention
36% of Northern Ireland’s population lives in rural areas, where research shows that homes are more likely to have poor insulation and be more difficult and expensive to retrofit.
It is vitally important that new measures do not lead to homes being abandoned because they are too inefficient. The Executive should consider a ring-fenced scheme to ensure rural homes receive targeted support.
Energy efficiency
The UK housing stock is amongst the least energy efficient in Europe and the Committee on Climate Change says that energy use in homes accounts for about 14 per cent of UK greenhouse gas emissions. Non-domestic buildings account for around one-third of UK emissions from the building stock.
Collaboration is the way forward
Propertymark supports the Executive’s proposal to build partnerships between government, local authorities, health professionals, and community organisations to help identify and support those in fuel poverty. A Fuel Poverty Advisory Group could also help ensure ongoing engagement and evaluation of policies.
Decisive and well-structured action is needed to ensure that homes are warm, tenants are protected, and property owners can invest in sustainable energy efficiency solutions. We will continue to engage with policymakers to ensure that the right balance is struck between affordability, energy efficiency, and fairness for all stakeholders.
