2020 has been a difficult year, but we know there will be many challenges in 2021 too. If you are a landlord looking for support, guidance and assistance, Andrew Lees is here to help you.

There will be many unique difficulties landlords must overcome this year, and energy matters will be front and centre.

The UK must make 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:

  1. Gas boilers shouldn’t be sold beyond 2033

  2. 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,

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.

Some help is available for landlords

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.”

While these changes will bring about long-term benefits and savings, it should be noted that the cost of these changes are often prohibitive at first. It is easy to see why many landlords will be apprehensive regarding the cost of investing in their rental property.

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.”

As an experienced letting agent serving the Bridgwater community, and many of the surrounding areas, we are here to help. We promise to stay in touch with the latest technology, helping our clients to achieve more, and we aim to support the local community as best we can. If there is anything, we can assist you with; please contact Andrew Lees Lettings today.