Blog: Unlocking warmer homes: why PRS MEES is central to fuel poverty reduction

Unlocking warmer homes: why PRS MEES is central to fuel poverty reduction 

For too many people living in the private rented sector (PRS), living in fuel poverty shapes the choices they make and the lives they lead. 

Here at National Energy Action, we regularly hear from private renters who are forced to ration their energy use and who live in cold homes to keep bills affordable. Before National Energy Action’s support, many of our clients in the PRS report cutting back on food (25.9%) and hot water (30.6%) and heating their homes less than they would like (42.9%) just to stay on top of rising energy costs, and consequently endure cold, damp and unsafe living conditions.  

Private renters face challenges when it comes to addressing these issues. They have little control over the energy efficiency of their property, heating systems, or the improvements needed for warm homes. Many tenants are also reluctant to raise concerns with landlords or request energy efficiency upgrades, fearing rent increases, eviction, or other negative repercussions. 

The consequences can be severe. More than a quarter of private renter households are living in fuel poverty, the highest rate of any housing tenure. Cold homes are linked to respiratory and cardiovascular illnesses, while damp and mould can have serious consequences for both physical and mental health. For children, fuel poverty can affect educational attainment, concentration, development, confidence and childhoods. For older tenants, living in cold homes increase the risk of illness and accidents such as falls. 

Against this backdrop, the government’s commitment to new minimum energy efficiency standards in the private rented sector (PRS MEES) is encouraging. It marks an important victory for us as a fuel poverty charity calling for warmer, healthier and more affordable homes for private renters. Additionally, PRS MEES is intended to deliver a significant share of progress towards the fuel poverty target, with an estimated 420,000 households expected to move out of fuel poverty by 2030. 

While the commitment is welcome, renters cannot afford further delays or unintended consequences. The Energy Independence Bill, which is expected to include key PRS MEES legislation, presents a critical opportunity to establish the legislative framework for PRS MEES. As the largest and most impactful measure for fuel poor households within the Warm Homes Plan, PRS MEES has the potential to transform living standards for millions of renters. Our test of success will be whether the necessary legislation is delivered swiftly and translates into tangible improvements in the homes and energy bills of fuel poor households. 

To achieve the best outcomes for fuel poor renters, the following conditions should be in place. 

1. The swift passage of PRS MEES legislation through primary and secondary legislation

Firstly, the government must now turn ambition into action by progressing the necessary primary and secondary legislation. While the Energy Independence Bill is expected to establish the enforcement framework, the secondary legislation setting the new standards must be laid swiftly to deliver the protections that private renters have long awaited. As the largest and most impactful measure for fuel poor households within the Warm Homes Plan, PRS MEES has the potential to transform living standards for millions of renters, making swift passage of the legislation vital.  

2. Renters must be supported by robust protections and support

PRS MEES must support tenants’ ability to keep their homes warm, safe and affordable to live in, while avoiding unintended consequences that could weaken these benefits. As the most important lever for meeting fuel poverty targets, it is vital that the policy delivers material reductions in fuel poverty, including warmer and safer homes. 

Key risks and unintended consequences include the potential for rent increases or ‘renovictions’, and disruptive or poor-quality installations. Analysis of First Tier Tribunal decisions (the mechanism which allows private renters to challenge rent increases), shows there is a clear relationship between a property’s energy efficiency rating and the discount the tribunal will apply to the market rent. Robust safeguards are needed to ensure that tenants are not left worse off because of the transition, and ensure that these risks are mitigated. Renters should have clear mechanisms to challenge unfair rent increases and access to effective consumer protection frameworks. Equally important is the provision of clear guidance and support for both landlords and tenants, helping to ensure that rights, responsibilities and good practice are understood and upheld across the sector. 

3. Local authorities must be supported to undertake robust enforcement

Strong standards will only swiftly make a difference in delivering warmer, safer homes for fuel poor tenants if they are reliably enforced by local authorities. To understand how PRS MEES enforcement is currently working on the ground, we recently surveyed 29 local authorities and followed up with two in-depth conversations with respondents (full report here). 

Our findings indicate that staff capacity and access to data are critical enablers of proactive PRS MEES enforcement by local authorities.  Local authorities with a dedicated, funded PRS MEES officer were significantly more likely to take a proactive approach to enforcement.  

Access to data was also seen as crucial, helping local authorities identify landlords and properties and build a more complete picture of the sector. We also found that local authorities generally viewed engagement with landlords as key to encouraging compliance, often helping to resolve issues before formal enforcement action became necessary. 

Consequently, to ensure PRS MEES delivers warmer homes in practice, robust enforcement is essential. As a result, local authorities should be provided with dedicated funding for PRS MEES enforcement, with enforcement duties clearly prioritised to support both reactive and proactive activity. Local authorities should also be supported through the creation of a PRS register, which would enable more effective and intelligence-led enforcement. The Warm Homes Agency could further play an important role in raising awareness of PRS MEES among both tenants and landlords, fostering compliance. 

What does success look like? 

The success of the Energy Independence Bill in reducing fuel poverty will depend in large part on the effective delivery of PRS MEES. As the single most significant intervention for fuel poor households within the Warm Homes Plan, PRS MEES has the potential to transform living standards across the private rented sector. However, realising these benefits depends on effective implementation and enforcement. We are therefore keen to see the policy fully actualised: where renters are protected from any adverse consequences and local authorities given the resources and tools they need to support compliance, with the aim that fuel poor households can benefit from warmer, healthier, and more energy efficient homes.