Push for landlords to improve property energy efficiency

 

New regulations are set to be introduced which will require more landlords to improve energy efficiency in their properties.

Since April, owners of properties with the worst energy efficiency rates – bands F and G – have been required to carry out work that would push the property into band E. Failure to do so would mean they would be barred from agreeing new tenancies.

The initial measures proposed that any landlords facing a bill of over £2,500 to make the required improvements would be exempt from having to do so. But the government now intends to lift that figure to £3,500 in 2019, meaning fewer landlords will be exempt and more will have to make their properties warmer and less draughty for their tenants.

Savings for tenants

The government estimates that for a landlord to carry out works including insulating lofts, cavity walls and upgrading boilers would set them back £1,200 on average. The measures, which could also include low energy lighting and underfloor heating, would save tenants an average of £180 per year.

David Smith, Policy Director for the Residential Landlords Association, felt the government could have gone further, stating,

“The proportion of private rented homes with the worst energy efficiency ratings or F or G has fallen from 39% in 1996 to 7% in 2016. Whilst good news, we should seek to ensure every private rented property is as energy efficient as possible.

“To help achieve this, the RLA produced recommendations for the Budget, which were ignored, that any work a landlord carries out that is recommended on an Energy Performance Certificate should be tax deductible. It is bizarre that, for example, that replacing a broken boiler is classed as a tax-deductible repair, but this is not the case if a landlord wants to replace an old boiler with one that is more energy efficient.”

Housing Minister Heather Wheeler MP said the move was part of a wider effort to improve standards, and said, “This builds on our on-going work to crack down on the small minority of rogue landlords and drive up standards in the Private Rented Sector, including through our reviews of health and safety standards and carbon monoxide alarm requirements in the home.”

The government has a Clean Growth Strategy that aims to bring as many homes up to band C by 2035. Energy giant Eon is developing a Green Mortgage with BNP Paribas Financial Services, which would extend a mortgage to include a loan that would be spent specifically on improving a home’s energy efficiency.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Graphic showing energy efficiency ratings

Push for landlords to improve property energy efficiency

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.