Energy Efficiency Rules Could Cost Landlords Thousands
February 9, 2015 |
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From April 2018, the legislation from the Energy Act 2011 will legally require landlords to upgrade their properties to meet the minimum – Band E – levels of energy efficiency. It is expected that many landlords will face costly bills as a result, with one utility supplier estimating a total cost to the lettings sector of £3.4 billion.
Although landlords will be able to access financial support from schemes such as the Green Deal, the amount available is capped, which could result in some landlords footing the bill for more expensive energy efficiency measures.
National Energy Action and the UK Green Building Council have praised government for introducing the measures, describing them as “the single most important piece of green legislation… in the whole of this parliament.”
However, the National Landlords Association (NLA) has warned that the consequences for the sector may not be as friendly as for the environment. According to Chris Norris, the NLA ‘s head of policy, the UK’s private rented stock could shrink by as much as 10% if landlords cannot make improvements before the deadline. Furthermore, the outcome of the election in May could make all the difference.
He said: “Under Labour’s plans there is an expectation that landlords will be able to foot the bills. These bills are easily five figures in many cases.
“When you’ve got a property that may gross £5,000 to £6,000 rent a year, being told you’ve got to spend £12,000 on insulation really doesn’t figure.”