Renters pay $150 more in home energy bills per year than owner-occupiers

“The underlying problem is an economics problem which is if there is more insulation in the roof a renter may not see that and may not be willing to pay higher rent for it and reward the landlord for it,” he said.
“Australia is a country with hot summers and in some areas cold winters. This is an important policy topic for governments around the country as renters face higher bills and more uncomfortable conditions relative to other people.”

Experts say governments should legislate minimum energy standards as well as provide incentives for landlords to upgrade their investment properties.Credit:Stephen McKenzie
PRD chief economist Dr Diaswati Mardiasmo, who researched the benefits of green housing in 2018, said Australia had progressed very little since then.
“Compared to the USA, Canada, New Zealand, and a lot of other countries our government’s push to have energy-efficient homes is lacking…because nothing is legislated,” Mardiasmo said.
She said residential property is the largest asset class in Australia, worth more than $9 trillion, accounting for 57 per cent of all building emissions, and that was only set to rise as more people work from home than ever before.
Mardiasmo said her research found a more energy-efficient home would be more attractive to renters and would re-sell for at least 10 per cent higher price than a home that was not energy efficient.

Renters face higher energy bills than similar households that own their homes.Credit:Peter Rae
“Landlords don’t realise that by having those green elements they are attractive to renters but also improve capital gains when they do sell.”
Joel Dignam, executive director of tenancy group Better Renting, said the current rental crisis prevented tenants from demanding more and allowed landlords to provide the bare minimum.
“Governments need to draw a line and make mandatory minimum requirements so people can pass winter in a rental home without their health being at risk,” he said.
“This intersects with the rental affordability crisis around Australia. There is no market pressure to lift the qualities of their properties.”