The Irish Property Owners’ Association (IPOA) has raised concerns following today’s report from the Economic and Social Research Institute (ESRI) on energy efficiency in the rental, and the upgrades required under the National Residential Retrofit Plan. Commissioned by the Department of Housing, Local Government and Heritage, the report highlights the substantial costs involved in retrofitting rental properties to achieve a Building Energy Rating (BER) of B2 or higher, estimating a total investment requirement of up to €8 billion.
According to CSO data, 8.9% of RTB-registered rental properties have a BER of F or G, compared to 15% of Irish owner-occupied homes. This suggests that private landlords are already making efforts to improve energy efficiency yet are being disproportionately targeted by restrictive policies.
The IPOA warns that at a time when Ireland is experiencing a severe housing crisis, these stringent requirements will act as a deterrent to prospective landlords considering placing property on the rental market, which will in turn place further strain on an already fragile rental market. While the IPOA acknowledges the policy aims to enhance the energy efficiency of rental properties, it fails to facilitate landlords to temporarily withdraw a property from the market for essential upgrades, a fundamental flaw given the scale of work required.
According to the IPOA, BER certification relies on often inaccurate assumptions. For instance, the system does not distinguish between kWh consumption and actual CO2 emissions, meaning a storage heater in Dublin powered by renewable wind energy from Donegal receives no improved BER rating. Furthermore, the report does not sufficiently consider the feasibility of retrofitting properties with flat roofs or buildings constructed before the introduction of mandatory planning permission under the Planning & Development Act 1963, many of which would require prohibitively costly upgrades.
The IPOA is calling on Government to reconsider and implement a more practical and balanced solution that protects both tenants and landlords. Key measures should include adequate financial supports, and flexibility for landlords to undertake necessary works without undue regulatory pressure. Without urgent action, these proposals risk further reducing the supply of rental accommodation at a critical time.
Mary Conway, Chairperson of the IPOA, commented: “Landlords are being asked to shoulder the burden of costly retrofitting measures without meaningful support from the Government.
The reality is that many simply cannot afford these upgrades, and the lack of flexibility in the policy will only serve to force more landlords out of the market. If the Government is serious about improving energy efficiency, it must introduce practical solutions that work for both landlords and tenants, rather than measures that introduce an additional regulatory burden.”
Although the ESRI report acknowledges landlords’ financial constraints, it fails to address the actual risk of properties being removed from the rental market. Tenants’ fate remains uncertain if landlords cannot afford to pay for the estimated €60,000 work and so are legally unable to let. Meanwhile, tenants will gain the financial advantage of lower energy bills, while landlords may only see a return upon selling the property. This dynamic discourages investment and could exacerbate the ongoing exodus of landlords.