In
November 2024 the Consumer
Policy Research Centre
(CPRC) in
partnership with Anika
Legal
and Consumer
Action Law Centre
(CALC) released a 23-page report entitled "Too
Hot, Too Cold, Too Costly: Victorian Renters Pay the Price for
Energy-Inefficient Homes".
Although
this report is principally based on small group research conducted in
one Australia state, the housing circumstances it describes are
common to many towns and villages across the country, both in
metropolitan and regional areas.
It
should be noted that although the report appears to address private
rental situations, it is not unknown for renters in government
subsidised social housing to experience health & safety issues
relating to a lack of energy efficiency built into dwellings they
rent and/or experience delays in receiving needed repairs to the
rental property.
The
following excepts are drawn from the first 15 pages of the report.
How
can we make it easier for people who rent to keep their home warm in
winter and cool in summer? How can we make sure that the cost of
energy isn’t excessive for people who rent?
All
renters deserve to live in a safe, healthy and energy efficient home.
Recent quantitative research has highlighted how rental homes with
poor energy efficiency cause harm.
Up
to 40% of households renting in Australia experience energy hardship,
threatening their financial
stability, health and housing security.
A
national survey by Better Renting found that three
in four renters in Australia are cutting back on heating and cooling
to reduce energy costs. Only 22% of renters in Victoria have adequate
ceiling insulation in their home, and 38% described their home as
being too cold "almost all the time" in winter.
This
report looks closely at the experiences of a group of renters in
Victoria. Anika Legal, in partnership with Consumer Action Law Centre
(CALC), provided financial counselling and legal advice to renters.
This research investigated the experiences of these clients in terms
of energy inefficiency in their rental properties, as well as the
impacts on health and financial wellbeing resulting
from inefficient energy use. The research also examined renters’
understanding of their rights, knowledge of complaints pathways, and
experiences of dispute resolution.
Consumer
Policy Research Centre (CPRC) provided an independent analysis of
findings, jointly reported here, in collaboration with Anika Legal.
Overall, the results tell a targeted story of the challenges people
face enforcing their rights as renters. There is a clear link between
energy efficient homes and decreasing cost of energy use. However,
the incentives for a landlord to make a home energy efficient do not
go far enough to adequately protect renters. As one of our renters
posited, a car needs a roadworthy. Why doesn’t a house?.....
Our
renters reported living in energy inefficient and faulty homes
Most
of our renters told us that the energy efficiency of their homes was
‘poor’ or ‘very poor’.
They
cited critical structural faults hindering the overall energy
efficiency, examples included holes in the roof, gaps in floorboards,
single pane windows, and draughty doors.
Additionally,
several renters found major faults within their air conditioning
units, electric water heaters, gas pipes and/or plumbing system. Some
renters reported damage to key facilities in their home including a
broken toilet valve, shower screen and fence. One renter said that
their home had numerous faults and even lacked necessities including
a front door lock,
security gate/screen, kitchen exhaust fan and smoke alarm....
Our
renters believed that the poor energy efficiency of their homes,
combined with unrepaired faults, directly contributed to the increase
in their energy and water bills. Our renters were concerned about
their ability to clear existing debts and cover any future increase
in energy and water prices.
Our
renters and their households experienced significant negative impacts
due to poor energy efficiency and faults in their homes
Our
renters reported that poor energy efficiency resulted in a range of
negative impacts on their
household. Of these impacts, financial costs and health and safety
concerns were the most significant.
Our
renters often felt that they had to choose between turning on the
heating during colder weather or enduring the cold to save money.
When our renters did turn on their heating, they often felt stressed
about how they would cover the additional cost to their energy bills.
This resulted in these renters experiencing a lower sense of
wellbeing and feeling disempowered and insecure in their current
living situation. When our renters did not turn on their heating,
they reported feeling concerned about the physical and mental health
impacts associated with being cold all the time....
In
addition, our renters were concerned about the health and safety
risks posed by faults including leaky water and sewerage pipes. For
instance, several of our renters were worried about the presence of
mould in their homes and others identified the safety risk of puddles
around water leakages. One renter even recounted an experience where
their young son was hospitalised
after slipping in a puddle of water that had leaked from a bathroom
tap. These risks caused renters to feel anxious over the health and
safety of their household.
Further,
another renter reported experiencing negative impacts including
stress, anxiety, relationship tension and less time to enjoy leisure
activities. These impacts occurred after the renter had endured major
gas leaks for several months....
Our
renters are picking up the slack when landlords don’t act
Our
renters often prefer to fix the problem themselves
When
encountering a problem with their home, our renters tend to contact
their friends, family, community workers, or often find a way to fix
the problem themselves. Our renters take it upon themselves to
purchase repair materials, appliances and other household products to
regulate temperatures inside their homes, incurring out of pocket
expenses for these
improvements.
For
example, several of our renters opted to purchase cheap standing
heaters, fans, new blinds, and/or electric blankets. In other cases,
one renter chose to seal gaps to prevent cold draughts, while another
decided to patch holes in the roof....
Our
renters are concerned about rent increases
Many
of our renters are concerned that even basic improvements made to a
property might lead to an increase in rent. One renter shared an
experience where a neighbour’s rent was increased despite the
landlord having already received a reimbursement for the property to
be improved in line with minimum standards....
Our
renters are aware of power imbalances, and this can influence their
actions
Our
renters recognised the power imbalance between themselves and their
landlords, understanding that landlords control both rent prices and
the security of their tenancy. This precarious dynamic often left
renters feeling powerless and influenced the extent to which renters
were willing to engage with their landlords. One renter expressed
that they did not want
to draw attention to themselves or remind their landlord of their
presence. This sentiment was echoed by another renter who preferred
to manage any repairs themselves to avoid potential retribution from
their landlord.....
The
full report can be read and downloaded at
https://anika-clerk.s3.amazonaws.com/documents/Too_Hot_Too_Cold_Too_Costly_-_December_2024.pdf