I propose to take Questions Nos. 536 and 542 together.
The Government's Strategy to Combat Energy Poverty 2016-2019, contains an action to examine the impact of introducing minimum thermal efficiency standards for rental properties. Research indicates that rental properties are twice as likely to be E, F or G rated on the Building Energy Rating (BER) scale. However, rental 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 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 consulted on as part of the new Long Term Renovation Strategy. Ireland must produce a new Long Term Renovation Strategy under the new EU Energy Performance in Buildings Directive and the consultation process for this must start in early 2019.