By now all buy-to-let landlords in the UK should be aware of the change in regulations that means they need to ensure any rented properties meet minimum energy efficiency standards.
London Loves Business recently reiterated the need for landlords to make energy efficiency a priority across their property portfolios though. All properties being rented on a new tenancy now need to reach at least an E rating on the energy efficiency scale.
And from 2020, all existing tenancies will have to be brought up to this standard as well. From a landlord’s perspective, it’s essential to ensure any necessary work is carried out, because there is a £5,000 fine per property for non-compliance.
But for tenants this can make a big difference financially too, with the news provider noting that average annual energy bills for an E rated property can be over £1,000 lower than for a G rated property.
This can fall by a further £1,000 for A or B rated properties, which is a significant saving. For any landlords that include bills in the cost of the rent, it’s clear to see why they could benefit from investing in new boilers, better quality glazing and other energy efficiency measures.
Even for those who don’t include bills with the rent, there can still be financial benefits, such as higher rental returns because of the lower living costs associated with renting an energy efficient home.
It isn’t only about installing these energy efficiency measures, but maintaining them too. We recently pointed out that now is the perfect time to organise a boiler service in Essex, because it gives you plenty of time to fix any issues before winter comes around again.