If you are a landlord in West Hampstead, we are here to ensure you make informed decisions that are right for your business.
There is still significant demand for rental property, but it is crucial landlords consider the challenges. In winter, energy efficiency is always a hot topic, but this is one issue of property ownership landlords must be aware of.
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
There are indications the Government will follow this guidance, so professionals in the letting sector should be ready for this. However, as you’d expect, there is some level of opposition to the changes which will be needed to meet these targets.
Not everyone agrees with the expected changes
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”.
One green energy supplier has priced up removing a gas boiler and replacing it with a heat pump to cost £9,900. However, with added installation costs, the total price of the work can reach £13,000.
Landlords looking to mitigate the cost of work should consider the Green Homes Grant. This is available for landlords, but beware the grant is only available up to £5,000.
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.”
We know these changes are often expensive. While many landlords can look at the long-term impact of these changes, it isn’t always possible. However, all landlords should devote time to examining how feasible these changes are for them.
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 West Hampstead today for all your housing and letting needs.