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Energy efficiency mandates proposed for Victorian rentals

By Staff Reporter
04 June 2024 | 9 minute read
Melbourne suburbs new reb

The Real Estate Institute of Victoria (REIV) will participate in the consultation in hopes of ensuring any new regulations don’t push investors out of the market.

Victoria launched the consultation process to bring in minimum energy efficiency standards just as the coldest months of the year get underway.

Up for consideration are several proposals to allow Victorian rental homes to be heated and cooled efficiently, minimising the costs to renters at a time when energy prices are soaring.

The state is currently proposing that rental providers should be obligated to:

- Install ceiling installation, draught sealing and weather seals on all external doors.
- Replace hot water and heating systems with energy-efficient electric appliances when their current appliance reaches end of life.
- Install four-star shower heads in all showers.
- Install three-star cooling systems in the main living area.

The state is now soliciting feedback from stakeholders on the plan that is ultimately intended to drive down costs for renters, while also ensuring that rentals are comfortable during the coldest and warmest months.

The REIV confirmed that it would take part in the process, hoping to strike a balance between improving energy efficiency without “placing further financial strain on rental providers”.

Jacob Caine, president of the REIV, said that he would ask the government to consider the financial capacity of Victorian rental providers when rolling out any new requirements.

“While we recognise these changes are needed to help realise the state’s net zero targets, the new requirements also come at a time when many rental providers may not be able to afford to make them. The costs of retaining an investment property have risen very sharply in recent times,” Caine said.

“We’re asking the government to be mindful that any further financial burden on rental providers could see them sell those homes, placing more strain on an already depleted rental property ecosystem.”

The state currently intends to phase in any new requirements, with compliance to begin on 30 October 2025.

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