These regulations are created with good intentions but for professionals in the letting sector, it can be difficult to stay up to date with everything.
Therefore, landlords, are you ready for new energy upgrade regulations?
New rules are set to ensure that landlords offer warmer accommodation that is also more affordable for tenants is great news for tenants. In the long-term, it is also likely to be positive news for many landlords, but as with any new measure or change, there are concerns as to the short-term impact.
Landlords have had to adapt to MEES
The new regulations follow on from the introduction of the Minimum Energy Efficiency Standards, or MEES, in April of this year. Under the new proposals, landlords may have to spend up to £3,500 of their own funds to improve the energy efficiency standards of their homes.
The Government wants to ensure that landlords have an obligation to undertake energy efficiency improvements. It was decided that landlords should contribute to the cost of improving a home’s energy efficiency but that there should be a cap on this expenditure.
Landlords should be prepared to pay for home improvements
The initial proposal suggested a cap of £2,500 per home but on the 5th of November, it was announced that the cap will be £3,500 and this is inclusive of VAT. There will be some landlords unhappy with this cap level but during a consultation period, the Government claims that almost half of the respondents recommended that the cap should have been £5,000; so, it could have been even more expensive for landlords.
In the long-term, home improvements help landlords in many ways:
- A home with a higher value can allow higher rental fees to be charged
- A home with a higher value can be easier to maintain
- A home with a higher value can attract a better class of tenants, who will maintain the home well
- Tenants are happy to find an energy efficient home, as this lowers their heating bills
As of yet, there is no date for these changes to take effect although it is likely to occur in 2019. There was an initial hope that the 1st of April 2019 would be the date, but this is too tight a deadline to occur now. Landlords will be informed of when the change takes place, but it wouldn’t hurt to start planning with the new regulation in mind.
If you are a landlord requiring assistance in staying up to date with regulations or providing your tenants with a high-quality service, get in touch. At Addison Giles, we are committed to supporting our clients as best we can, and we look forward to assisting you soon.