Climate Contract Playbook Edition 3
177
[Toryn’s clause]
The Origin Story
Child’s name
Toryn’s clause
Full name
Green Assured Shorthold Tenancy (AST) clauses
Practice Area / Sector
Real Estate
Tenants are not incentivised to occupy their rental property in a sustainable way and landlords have no ability to install renewable energy solutions whilst the property is occupied by virtue of the protections afforded to tenants under ASTs. Include the Green AST clauses in all ASTs to give tenants a modest rental rebate (to be determined by each landlord) for buying renewable energy, recycling and reducing household and water waste and give landlords the ability to invest in renewable energy installations (and take advantage of tariffs or financial support, if available) whilst their rental properties are occupied. According to Generation Rent 95 , 13 million people in the UK rent from a private landlord, equivalent to 20% of the UK’s population. In London, that figure is 29%. The most common form of tenancy is an AST. Most new tenancies are automatically this type 96 . Around 2/3rds of UK households are on standard variable rate energy tariffs, however fixed rate green energy tariffs are generally cheaper and there are several green energy tariffs – offered by suppliers such as Good Energy and Bulb - on the market 97 . Energy bills are a concern for many people. Research by the Energy Saving Trust regularly highlights that large numbers of UK residents are worried about their energy costs and would like to do something about it 98 . However, potential tenants do not always apply the same level of scrutiny to their potential home as buyers and high energy bills in private rental properties, which are more likely than any other tenure to be old and inefficient, could place an unwelcome burden on top of the cost of the rent 99 . By utilising the Green AST clauses, private landlords can incentivise their tenants to live more sustainably by offering them the “Green Rent Rebate”. The “Green Rent Rebate” encourages tenants to choose a renewable energy tariff at the start of the tenancy and maintain it for their period of occupation. Further, by including the ability to re-enter their properties to investigate, and if possible, undertake the installation of renewable energy solutions, in their AST, private landlords have the option to invest in their properties – for the benefit of themselves (in terms of the properties long-term value, making the property more attractive to tenants, lowering turnover and reducing potential problems such as damp) and their tenant (who will have the opportunity to live in a more energy efficient home which is cheaper to run, thus reducing the risk of fuel poverty) 100 – rather than having to wait until the property is unoccupied to undertake such works at a time when they are not receiving rent.
Issue
Solution
Context
Impact
95 https://www.generationrent.org/about_renting 96 https://www.gov.uk/tenancy-agreements-a-guide-for-landlords/tenancy-types 97 https://www.moneysupermarket.com/gas-and-electricity/green-energy-tariffs/ 98 https://energysavingtrust.org.uk/home-energy-efficiency/financial-support 99 https://energysavingtrust.org.uk/blog/think-energy-efficiency-when-renting-home 100 https://energysavingtrust.org.uk/scotland/businesses-organisations/landlords
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