The Welsh Government should consider tax incentives to support improvements to the energy efficiency of private rented housing, according to a new report from Members of the Welsh Parliament, known as the Senedd.

In its report on decarbonising private housing, the Senedd’s Climate Change Committee argues that ministers in Wales should look at how to use council tax and the Land Transaction Tax – the Welsh version of stamp duty – “to incentivise energy efficiency retrofit as a priority.”

The report concludes that accelerating energy efficiency improvements in the privately owned housing stock will require a combination of both “incentives and regulatory standards.”

The National Residential Landlords Association says the UK government has failed to provide clarity about the energy efficiency standards that will be expected of the sector. This is despite a consultation closing on the issue over two years ago. 

The Welsh report warns that: “While the UK government continues to drag its feet over whether to increase standards in the private rented sector, the sector remains in limbo.”

 Recognising the important role that the private rented sector plays in meeting Wales’ housing needs, the committee warns that any changes to energy efficiency standards need to avoid having an “impact on the availability of affordable, private rental properties.”

Ben Beadle, NRLA chief executive, says: “The NRLA welcomes today’s report. Whilst we all want to see properties as energy efficient as possible, this needs to be backed up by a sensible financial package to support such work.

“The committee is right to call on the Welsh Government to look at how to use the devolved tax powers it has to support energy efficiency improvements. We also share the committee’s concerns that new regulations should avoid hitting the supply of much needed homes to rent in Wales.

“We urge the Welsh Government to consider the reports recommendations with the seriousness that they deserve.”