Botched insulation scandal warning ahead of new energy efficiency rules

With more than 30,000 households the victim of sub-standard insultation work carried out under government-funded schemes, NRLA chief innovation officer and Safe2 founder James Kent is warning ministers need to go back to the drawing board when it comes to new minimum energy efficiency standards (MEES) plans.  

Botched insultation is putting tens of thousands of UK homes at risk of damp and mould, it has been reported.  

An audit report of 60,000 homes that have had insulation fitted under the Government’s ECO4 and Great British Insulation Scheme (GBIS) found the insulation had not been fitted to the correct standard in half of the properties, potentially putting residents at risk.  

This comes after it was revealed back in January that 39 businesses had been suspended from installing new solid wall insulation in homes after work failed routine TrustMark checks.  

While there has been no breakdown as to how many of these 30,000 properties are owner-occupied and how many are rented, the insulation scandal is bad news across the board.  

And with the Government expected to come back with the results of its consultation into new minimum energy efficiency standards (MEES) in the coming months, it serves as a grim warning.  

To recap, the Government is proposing that all homes in the private rented sector need an EPC rating of C or above to be legally rented out, with a deadline of 2028 for new tenancies and 2030 for existing ones.   

We have already raised serious concerns about the plans – specifically as we believe the timetable is far too tight, with an estimated 2.5 million homes currently rated below a C and needing improvements. 

This is already compounded by the dire shortage of qualified tradespeople available to carry out the works, with an estimated 160,000 shortfall, expected to rise to 250,000 by 2030.  

Now, looking at the scale of the insulation scandal, it seems that even if you can find what you think is a trusted firm – Government approved at that – there is still no guarantee that the work will be carried out to the appropriate standard.  

It could even make things worse.  

In addition to this, as well as the expected spike in demand as the MEES deadline approaches, remedial work will be needed to be carried out to fix the 30,000 homes where insulation installation has been botched, putting even more pressure on landlords looking for a trusted tradesperson to carry out works.  

In short, we believe the MEES proposals as laid out earlier this year, are unworkable, and the Government needs to go back to the drawing board now, before it is too late.  

We are calling for the introduction of the new rules to be pushed back to 2030 across the board, to give landlords time to timetable the works, and source the funding – with landlords expected to fork out up to £15,000 a property for improvements (something we are challenging, with alternative proposals for a graduated cap.  

Without this we risk compounding the existing supply crisis in the private rented sector, as homes are taking off the rental market, with a potentially devasting impact on both tenant choice and rent levels.  

More information 

• I have concerns, what should I do? Anyone with concerns about the standards of insulation installed under ECO4 or GBIS should contact energy regulator Ofgem in the first instance, according to the Government, via email at: [email protected] or on freephone 0808 169 4447.  

• For more information on funding streams for energy efficiency improvements click here.  

• You can find a trusted tradesperson using NRLA partner Checkatrade which offers exclusive discounts for members.  

• Safe2, powered by the NRLA, is a platform designed to help landlords order vital inspections and  property certificates with ease. With discounts on all certificates for NRLA members you can find out more here.  

• James Kent will be hosting a hosting a panel on tech and innovation at the NRLA’s UK Housing Conference in November. Book your ticket here.