New report spurs on energy saving measures for leaseholders

Greater collaboration between leaseholders and local authorities, and exploration of potential legal changes, could help residents in leasehold flats save money on energy bills, according to new guidance.

London has the most leaseholder properties in the country, with 36% of all homes and 62% of flats owned by leaseholders.

Making London’s homes more energy efficient is a key ambition for London boroughs. However, local authorities and residents wanting to make their homes greener and warmer are facing significant challenges.

The report, 'Retrofitting Leasehold Properties: Guidance for local authorities' looks at how best to make leasehold properties more energy efficient but acknowledges that financial costs and legal complexities are making it difficult for leaseholders and council tenants living within the same housing blocks to receive help. It is also putting a significant strain on council’s budgets.

Improvements to make these homes warmer and greener often include installing new insulation across a whole building or replacing fossil fuel heating with renewable sources. This can be technically complex and costly.

This new report includes step-by-step guidance to support councils with resident engagement, the legal landscape, and support around costs. It also includes recommendations for wider policy reforms.

Recommended policy reforms include:

  • A clearer framework for freeholder and leaseholder collaboration, to streamline the process of recovering costs and minimise financial pressure on leaseholders.
  • Better guidance on leaseholder caps as London boroughs often receive conflicting legal advice.
  • An adjustment to funding schemes so work on leasehold homes will be more successful. Current funding schemes do not give councils sufficient time to go through the leasehold consultation processes, despite it being required by law.
  • Legal timelines to be a top consideration for government when allocating funding, giving local authorities the time needed to meet their obligations while accessing available funds.

    Download Retrofitting Leasehold Properties: Guidance for local authorities
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“Making it easier for leaseholders to carry out improvements to their homes is an important issue for London - more than a third of all homes in the city are owned by leaseholders, including 62% of flats. 

“We also have 379,000 households living in fuel poverty in London, partly due to the number of cold and poorly insulated homes in the capital. This is damaging people’s health and eating into people’s incomes. 

“With 31% of London’s carbon emissions coming from domestic buildings, not only will these improvements lower energy bills, but they will play a vital role in achieving our goal to reduce carbon emissions across the capital.”

Cllr Kieron Williams
London Councils Executive Member for Climate, Transport and Environment
Open window overlooking neighboring brick apartments.