Energy Efficiency Minimum Standards for Rentals

VCOSS Submission on Energy Efficiency Minimum Standards for Rental Properties and Rooming Houses

VCOSS strongly supports the Victorian Government’s proposal to introduce new minimum energy efficiency standards in rental properties.
The proposed standards for ceiling insulation, draught sealing, water heating, and heating and cooling are a good start for comprehensive minimum standards for energy efficiency in Victorian rental properties. Safety standards for securing blind cords, and the introduction of a heating standard for rooming houses, are crucial and timely measures.
VCOSS recommends strong implementation measures that will ensure the efficacy of the current suite of proposed standards. We also note some improvements that are required now and in future rounds of reform.
Energy efficient homes are critical for people’s health and wellbeing, their wallets, and the planet. They are more comfortable to live in, cost less to heat and cool, and help reduce greenhouse gas emissions.
In terms of thermal performance and energy efficiency, the rental sector currently serves up some of the worst quality homes in Victoria. More Victorians are renting, the impacts of climate change are increasing, and energy costs are consistently high. Improving the quality, comfort and safety of rental homes to a basic, liveable standard is critical to mitigate the impact of these factors on renters. Benefits include reductions in the rates of chronic illness like asthma, reduced depression and anxiety, and even prevention of suicide.

Recommendations

  • As a matter of urgency, introduce the proposed minimum standards for energy efficiency in Victorian rental properties for ceiling insulation, draught sealing, water heating, heating and cooling, heating in rooming houses, and blind cord anchors.
    Implementation:
  • Adequately fund community housing providers and other not for profit housing providers to retrofit the housing stock they manage.
  • Protect renters from unreasonable rent increases or eviction due to compliance with minimum standards.
  • Take measures to improve rental providers’ and property managers’ understanding of minimum standards and their obligations under the Residential Tenancies Act and establish training requirements for rental property managers.
  • Mandate provision of a certificate of compliance to prospective tenants at the point of inspection.
    Enforcement:
  • Establish an external and independent audit process to ensure rental properties comply with minimum standards before they are leased.
  • Sufficiently resource and empower CAV to proactively investigate and penalise rental providers who do not comply with minimum standards.
  • Sufficiently resource VCAT to provide timely dispute resolution, and work with the social and community sector to scope the new Rental Dispute Resolution body.
    Ceiling insulation:
  • Minimum standards should require that ceiling insulation at an R5 value be installed in rental properties which currently have no insulation.
  • Include top-up insulation to R5 value on all properties with ceiling insulation below R2, and require insulation to adequately cover the entire ceiling space.
    Draught sealing:
  • Mandate draught sealing of cracks, gaps, and leaks in Victorian rental homes through minimum standards, based on Option Three as laid out in the RIS.
    Water heating:
  • Minimum standards should facilitate a shift to efficient electric heat pumps for water heating at the end-of-service-life of existing units.
    Heating and cooling:
  • Mandate heating and cooling in Victorian rental homes through minimum standards, based on Option Three as laid out in the RIS.
  • Mandate heating in Victorian rooming houses through minimum standards, based on Option Two as laid out in the RIS.
    Blind cord anchors:
  • All rental properties should have curtain and blind cord anchors installed by October 30th, 2025.
    Additional minimum standards:
  • Improve the minimum standard for ventilation.
  • Include cheap and common-sense technology that improves the safety and comfort of rental properties in minimum standards.
    Future direction of minimum standards:
  • Articulate a clear phase-out date for gas appliances in rentals.
  • Phase out gas stoves and replace them with induction cooktops.
  • Shift Victorian minimum energy efficiency standards for rentals from features-based standards to a holistic performance-based standard.

VCOSS is the peak body for Victoria’s social and community sector, and the state’s premier social advocacy body. We work towards a Victoria free from poverty and disadvantage, where every person and community experiences genuine wellbeing. Read more.

We welcome the opportunity to provide this input.

This work is authorised by VCOSS CEO Juanita Pope.

PRIMARY AUTHOR

Rory Anderson

VCOSS acknowledges the Traditional Owners of Country, and we pay respect to Elders and Ancestors. Our business is conducted on sovereign, unceded Aboriginal land. The VCOSS offices are located on Wurundjeri Woiwurrung land in central Naarm.