This article is from the Australian Property Journal archive
THE Victorian government has launched the consultation process for new minimum rental standards, that would include requirements for ceiling insulation, draughtproofing, hot water efficiency and cooling.
Launched by minister for consumer affairs Gabrielle Williams and minister for energy and resources Lily D’Ambrosio, the proposed changes would see landlords required to meet new energy saving standards, including a 3-star cooling rating for systems in the main living area, 4-star shower heads and blind cord anchors.
“The proposed standards will make rental properties safer and more comfortable – giving renters peace of mind for both the winter and summer and driving down costs,” said Williams.
“Everyone deserves to live comfortably – these proposed standards will make rentals more energy efficient and cheaper to run – slashing their bills and making them more climate resilient,” said D’Ambrosio.
The minimum requirement for ceiling insulation, where there is no ceiling insulation already installed, to have draught sealing, including weather seals on all external doors, which has potential to save renters around $567 per year on their bills.
Landlords would also need to replace hot water and heating systems with energy efficient electric appliances when their current appliance reaches end of life, which could have renters $215 per year.
The proposed changes have been welcomed by The No More Gas campaign at Friends of the Earth Melbourne, referring to the current standards as “basically a glorified tent, in terms of insulation.”
“Half of the gas used in Victoria is blown on heating buildings alone so setting higher standards for rental energy efficiency and mandating ceiling insulation will save Victoria from projected gas shortfalls in the winters in coming years,” said Freja Leonard, campaigner at No More Gas.
“Existing tenants won’t need to fear being kicked out by landowners who want to raise rents to cover the costs of mandatory upgrades. Of course, there is downside that this could create a two tier market – those in cheap rentals that are expensive to run and those in more expensive, upgraded properties with lower energy bills.”
These new standards will be introduced in phases to allow landlords time to adjust and comply, with compliance commencing 30 October 2025.
Back in March, the state government announced a new renting taskforce to tackle dodgy landlords and real estate agents to stamp out false advertising, renting out properties that don’t meet minimum standards and not lodging bonds.
The state government has opened up a regulatory impact statement for public consultation, with submissions closing 1 July 2024.
