2021 will be a year of challenges. Some of these challenges are well known, and you will be familiar with them already. However, if you are a landlord, you will likely have other obstacles to over.
At Hunters Stoke Newington, we aim to provide you with as much support as we can. If you’re a local landlord looking for guidance, get in touch, and we will be more than happy to assist you.
Get ready to make some changes
The Committee on Climate Change (CCC) says if the UK aims to reach their target of net zero emissions by 2050, the following two steps should be taken:
- Gas boilers shouldn’t be sold beyond 2033
- Electricity production should be zero carbon by 2035
It does appear the Government will follow this guidance, so it is worth your while reading up on the matter. However, there will likely be some opposition, to this.
Myles Robinson is the director of supplier and installation company Boiler Central, and he has said; “The job is definitely going to be an expensive one. Making greener homes doesn't come cheap, especially when you're considering ripping out old boilers. I think many landlords are going to struggle to keep up with the growing costs. With the Green Home Grant deadline quickly approaching, understanding how much you'll make and lose from investing in greener tech should become a priority”.
Replacing a boiler can be costly
One green energy supplier has said removing a gas boiler and replacing it with a heat pump will cost a landlord around £9,900. However, with added installation costs, the total price of the work can reach £13,000, which is a fee that will alarm many landlords and letting industry professionals.
Landlords looking to mitigate the cost of work should consider the Green Homes Grant. This is available for landlords, but there are two key concerns:
- The grant is only available for up to £5,000
- The deadline to claim this grant is March 2021
And George Holmes of Aurora Capital, which is a financial broker with links to the domestic energy sector, said; “With the Green Home Grant expiring in March, there is a lot of worry landlords won't get the work done in time. With only £5,000 being available, many won't be able to afford to keep up with the proposed changes put forward by the government.”
It should be noted that these changes will make a big long-term difference to rental property, the upfront costs are prohibitive for many landlords.
George Holmes said; “If landlords are struggling with funding despite the government's best efforts, there are still other finance options available. Development finance could be used to aid with gas boiler renovation. However, it'll be interesting to see whether landlords are willing to take out further loans to keep up with the PM's ambitious targets.”
If you need any help or guidance regarding property matters, please get in touch. As your local housing market specialists, we will do what we can to ensure you make your next house move in style. Contact Hunters Stoke Newington today for all your housing and letting needs.