AN OVERVIEW OF THE CURRENT SITUATION
As energy costs continue to head upwards, many of us consider making changes to our lifestyle, and are looking into ways that would help save money while improving the energy efficiency of their home amongst others.
To ensure that the UK is on course to fulfil its CCC 2050 net zero objective and an 80% reduction in greenhouse gas emissions by 2050, nearly 19 million houses will need to be made more energy efficient before 2035.
Domestic gas prices rose by 96% between September 2021 and September 2022, while domestic electricity costs rose by 54%.
IMPACT ON HOUSEHOLDS
Numerous households have claimed that their finances have been impacted and that they have had to make some cuts as a result of the rising cost of energy and the inflation that accompanied it.
When surveyed in November 2021 by the OPN (Office for National Statistics – Opinions and Lifestyle Survey), 82% of individuals indicated they were spending more on utility costs.
GOVERNMENTAL ACTIONS
- The Prime Minister declared on September 8 that a new Energy Price Guarantee (EPG) would be implemented starting on October 1. This was initially intended to last two years and was set at £2,500 year for average levels of consumption. Beginning in April 2022, the government provided qualifying homes with a non-repayable payment of £150 for winter heating.
- As part of the Energy Bills Support Scheme, an additional £400 non-repayable discount will be made available to qualified homes starting in October 2022.According to the government, this will benefit about 29 million homes across Great Britain.
- To aid approximately 3 million low-income households, the Warm Home Discount has also been increased. Those who qualify will get a one-time payment of £150 instead of the customary £140.
WHAT LANDLORDS CAN DO:
Energy Performance Certificates (EPCs), which can be useful for both landlords and tenants, help to better understand a home’s energy performance and identify areas for improvement. An EPC rates a building’s energy efficiency on a scale of A (the best) to G. (the least efficient).
Every ten years, landlords must obtain a new EPC, and it is their duty to give tenants an up-to-date EPC.
A strong EPC rating can result in cheaper energy costs for tenants and a smaller carbon footprint for the home. This can increase the comfort, affordability, and appeal of your rental home for both potential and current tenants. When a renter moves in, they must be given a copy of the property’s EPC.
Verify that yours is up to date. If your EPC is expired, you might incur fines of up to £30,000.
In the United Kingdom, an EPC is required for every rental property with some exceptions such as:
- Temporary buildings that will be used for less than two years
- Stand-alone buildings (less than 50 square metres of floor-space)
- Holiday accommodation rented out for less than four months per year
- Residential buildings intended to be used less than four months a year, etc.
A minimum EPC grade of “E” or above is needed for all homes that are currently being sold or rented in England and Wales. All current and new tenancies must adhere to these minimum energy efficiency standards.
All rental homes would need to have an EPC rating of “C” or above by 2025 for new tenancies and 2028 for all existing tenancies, according to amendments to the Minimum Energy Efficiency Standards for England and Wales proposed by the UK government.
There are several ways to determine whether your home could benefit from energy-saving upgrades.
Upgrading the energy efficiency levels of your house would increase the appeal and attract more renters who are looking for a new place to call home.
- SETTING UP A SMART METER
This could significantly help in monitoring and better managing the household’s energy usage. Smart meters track household energy consumption almost instantly and display it on a useful in-home display.
You may see your energy consumption in pounds, pence and kWh. This can make it clearer to both tenants and landlords why the bills are increasing. In order to save money and minimise their energy use, homeowners might make modifications. Our research shows that tenants feel a smart meter will help them control their energy costs, resulting in less anxiety when the bills arrive.
- FIT IN THERMOSTATS ON RADIATORS
The thermostats on radiators, if you haven’t already installed them, can enable tenants just heat the places they need or increase the regions they are living in the most.
In rooms that are used very little, this will maintain some heat.
I have these, and they’re my go-to method for keeping the various rooms I use at various times cosy and for reducing my utility costs.
- INSTALL INSULATION IF YOU’RE REPAIRING OR IMPROVING A PROPERTY.
Making sure the walls, floors, and roof spaces are all well-insulated is a fantastic method to help tenants keep costs down by reducing the amount of heating that is needed to keep a property warm. Around 25% of heat loss occurs through the roof, but professional insulation installation should result in savings for 40 years, making this a highly cost-effective option to assist tenants now and in the future (or yourself if you are the bill payer).
Other improvements that can greatly improve the rating:
- Heating systems, such as an energy efficient boiler.
- Draught-proofing gaps and cracks.
- Double glazed windows or energy efficient doors.
- Renewable energy systems, such as solar panels or heat pumps.
- Upgrading to LED light bulbs.
At Kings, we always strive to make sure that properties we manage are up-to-date and comply with the latest regulations. We monitor each property and maintain a close report with our landlords, all to ensure legal responsibilities are met and the property is maintained to the highest standards.
KINGS LETTINGS, 103 HIGH STREET, MAIDENHEAD, BERKSHIRE, SL6 1JX
Lettings and property management offices in London, Reading, Maidenhead, Staines & Windsor.
T: +44 (0)16 2863 2188 | E: MAIDENHEAD@KINGS-LETTINGS.CO.UK
