Mandatory disclosure of energy ratings
Most house hunters fail to appreciate the importance of a low star rating, according to the School of Property, Construction and Project Management’s Dr Neville Hurst
This is despite the fact it can have profound impacts on a household’s health and budget.
“In a home with a low star rating, it can be hard and costly to maintain a comfortable temperature and occupants’ health can suffer,” he notes.
However, it’s extremely difficult for house hunters to obtain basic information like energy star ratings in the home rental and ownership markets.
One of the issues is that many real estate agents lack sufficient knowledge of energy efficiency and its impact on the housing market.
“The problems can only be overcome if state and federal governments work together to make it mandatory to disclose the energy efficiency of housing at point of sale,” he says.
This would require home owners to provide information to buyers and renters about the energy star rating, allowing house hunters to easily compare the performance of all homes they are interested in.
Such transparency would also provide more options to owners.
“Mandatory disclosure does influence the housing choices buyers make. Properties with higher energy ratings are often more appealing and potentially fetch higher prices compared to less efficient houses,” he says..
“Mandatory disclosure is no panacea for improving the poor energy performance of Australian housing, particularly the rental properties that would benefit from minimum standards.
“However, it’s an essential element of a suite of policies that governments should implement to drive the transition towards net-zero-carbon, healthy homes.”
Story: Diana Robertson