Rent reduction: defects versus a poor energy label

Two different mechanisms

Energy label points are part of the regular WWS point count: a label E, F or G deducts points from the total, while a better label yields more points. This effect is structural and applies automatically for as long as the label is valid, regardless of whether the tenant starts a procedure about it.

A rent reduction due to maintenance defects is a different process: the tenant submits a request to the Rent Tribunal to temporarily reduce the rent because the landlord has not resolved serious defects, such as damp, draughts or a broken installation, within a reasonable period.

Why the difference matters for landlords

With a poor energy label, the solution is structural: pursuing sustainability measures to a better label permanently increases the WWS points and therefore the maximum rent. With a defects procedure, resolving the specific defect is the solution, after which the temporary rent reduction in principle lapses again.

Both processes can actually overlap: a home with a poor energy label often also has a higher risk of damp-related defects, so pursuing sustainability measures via insulation can reduce both the label score and the risk of a defects procedure.

• Energy label: structural effect on WWS points and the maximum rent.
• Maintenance defects: separate process at the Rent Tribunal, often temporary in nature.
• Insulation measures can reduce both risks at the same time.