• Better Renting executive director Joel Dignam.
    Better Renting executive director Joel Dignam.
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Tougher regulations need to be introduced to improve insulation and the energy performance of residential buildings in Australia, according to tenant advocacy group Better Renting.

The organisation’s executive director, Joel Dignam, said the problem has been exacerbated by rising energy costs.

The latest federal government budget outlook warns energy costs are predicted to rise precipitously in coming years; it includes predictions of a 20 per cent increase in late 2022, followed by a 20-30 per cent increase in 2023-2024. 2

Better Renting is tracking temperatures in 75 rentals across Australia to see how far they exceeded the recommended safe limit of 25C for more than nine hours a day.

Dignam said renters were recording temperatures of up to 70C in their roofs, with the heat travelling down and keeping the rooms above 30C for long periods of time.

Many of the hottest homes are those of people living in social housing, with some residents forced to go into debt to buy air conditioners, or hose down their houses to stay cool.

Better Renting has released a report entitled The cost of complacency which attempts to quantify the high cost of living in a poorly insulated home.

“In this paper we attempt to quantify the dollar value of this benefit to highlight what renters in inefficient homes in NSW are missing out on. We estimate that NSW has over 700,000 rental homes with poor energy efficiency, and that improving the efficiency of these properties would achieve benefits worth $1.199 billion, or $1683 per property,” the report said.

“Driving energy efficiency retrofits of rental housing will bring about energy benefits worth a total of $1.199 billion, and $2717 per household that is currently at or below 0.5 stars energy efficiency,” the report said.

“Such retrofits could be achieved through the introduction of minimum energy efficiency standards for rental properties, which could mandate weather-proofing features such as ceiling insulation, draught-sealing, and window treatments.”

The report said such a standard would reduce living costs, while also contributing to better household wellbeing, improved public health, and lower climate pollution.

“Australia is a mild-climate country that has generally taken a ‘she’ll be right’ approach to the energy performance of our housing stock. The downside of this is there are now millions of people renting in NSW whose homes offer little protection from the elements and saddle them with avoidably high energy costs,” the report said.

“The upside of this is that there’s still a lot of low-hanging fruit left to pick. There’s ample opportunity for government regulation to drive the uptake of simple efficiency measures that can make a huge positive difference for the growing number of people renting their homes.”

In conclusion the report found that better insulation and a more energy efficient home equals greater thermal comfort.

Energy rating

Late last year federal, state and territory building ministers agreed to raise the minimum energy efficiency standards for new homes by updating the National Construction Code (NCC).

The minimum energy efficiency requirements for new houses and apartments are increasing from the Nationwide House Energy Rating Scheme (NatHERS) equivalent of 6 to 7 stars.

A new Whole of Home annual energy use budget applicable to the home’s heating and cooling equipment, hot water systems, lighting, swimming pool and spa pumps, and onsite renewable energy systems will also be introduced.

The NCC will come into effect on 1 October 2023 but may vary by state and territory.

While this is good news for new housing it is the old housing stock that is in need of immediate attention.