Dáil Éireann Debate, Wednesday - 21 November 2018
208. Deputy Timmy Dooley asked the Minister for Communications, Climate Action and Environment the actions taken to date to address the divergence of incentives in the uptake of retrofits in rental housing between landlords and tenants; the actions planned; and if he will make a statement on the matter. [48539/18]
View answerRental properties present a particular challenge in terms of energy efficiency upgrades owing to the split incentive issue. A split incentive occurs where landlords meet the cost of improvements, while tenants would reap the benefit, so neither party is motivated to upgrade the dwelling. This is why there is currently under-investment in improving the energy performance of rental properties.
Grants for energy efficiency, funded by my Department and administered by the Sustainable Energy Authority of Ireland (SEAI), are already available to landlords. Improving the energy efficiency of rental properties, both residential and commercial, will deliver multiple benefits, including improved living conditions and health outcomes, enhanced asset value and reduced energy bills. However, in identifying the appropriate policy interventions the priority has also been to ensure that the approach taken to address energy poverty will also not adversely impact the housing supply situation.
To find a way forward that supports action in the two critical policy areas of energy poverty and housing supply, options for improving energy efficiency in the rental sector will be proposed by an advisory Group composed of my Department, the Department of Housing, Planning and Local Government and SEAI. These options will be consulted on early in 2019 as part of developing the next Long Term Renovation Strategy.
