Sunak scraps Energy Performance Certificate (EPC) targets

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Landlords will be celebrating after the government announced it will scrap the energy performance certificate (EPC) targets for homes.

Prime Minister Rishi Sunak unveiled the plan – along with a ban on binning gas boilers – during a televised press conference from Downing Street.

View Full Article: Sunak scraps Energy Performance Certificate (EPC) targets

REVEALED: Full details of Rishi’s U-turn on boiler ban and EPC rules

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Rishi Sunak has made a speech rowing back on several key green policies that were to cost landlords thousands but that were part of his key Net Zero pledges.

Announcing a ‘new approach’ to one of the biggest challenges faced by the UK – climate change – saying “we must reduce our emissions” and that politicians need to “look people in the eye and explain what’s really involved”.

He said this includes being honest about the real-life implicaitons of previous measures to reduce carbon emissions including banning gas boilers even though many properites are not suitable for a heat pump and mandatory EPC Band C upgrades in just a few years’ time.

Sunak also said that although many people, despite wanting to do their bit to reduce carbon emissions, should not have measures forced on them by politicians, espeically “those who are already struggling to make ends meet”.

He said without a national debate on carbon emissions reduction, the backing of the people for change would be lost, saying a more pragmatic approach is needed despite the need for ‘hard choices’ and a commitment to meet the UK’s existing Net Zero ambitions.

This includes giving property owners ‘far more time to move to heat pumps’ and ‘not forcing anyone to rip out existing gas boilers’ and only requiring property including landords to replace them with heat pumps once they have worn out and even then not until 2035. An existing boiler upgrade scheme will be raised by 50% to £7,500.

Sunak also referenced minimum EPC levels for properties, mentioning that the huge costs of upgrading homes is likely to be passed on as higher rents to tenants. The looming EPC changes due to go live for existing tenancies in 2028 are now to be scrapped, with more Government money instead being offered as a carrot to landlords and home owners to upgrade their properties.

Therefore fines for landlords who do not upgrade their properties to a minimum Band C by the 2025 and 2028 deadlines are therefore not off the table.

A survey out today highlights why the Government has rowed back – just one in five property owners told boiler repiar firm Fair Fix they supported the planned ban on gas boilers, with 94% believing it should be their decision as to what type of energy powers their home.

Earlier today Foreign Secretary Sue Braverman took to the radio and TV studios to defend the row back, telling both Times Radio and the BBC’s Breakfast Show that she applauded Sunak for making a “difficult decision” that showed “pragmatism and proportionality” saying “we’re not going to save the planet by bankrupting the British people”.

“We need to ensure that we take into account economic growth, household budgets and the cost of living,” she told Radio 4’s Today programme.

Former housing secretary Simon Clarke has said this morning: “I am very clear: The delivery of net zero should not be a hair-shirt exercise”.

Denial

But the U-turn on green policies shows there is much internal conflict within the Tory party. While Gove recently said he wanted to ‘soften’ the impact of green upgrades for landlords, a Government minister in the Lords last week denied any changes were in the pipeline.

Zac Goldsmith (pictured), who until recently was a minister in the Government, said: “His short stint as PM will be remembered as the moment the UK turned its back on the world and on future generations. A moment of shame.”

Alok Sharma, who chaired the recent CO26 summit, said it was important that Britain must stay committed to its Net Zero commitments.

Sunak is expected to make his speech this week but may reveal more details today following last night’s leak.

Landlords’ reaction

Responding to the Prime Minister’s speech scrapping proposed energy efficiency targets for households, including rental properties, Ben Beadle (pictured), Chief Executive of the National Residential Landlords Association (NRLA), says: “We want to see all properties as energy efficient as possible.

“But the uncertainty surrounding energy efficiency policy has been hugely damaging to the supply of rented properties.

“Landlords are struggling to make investment decisions without a clear idea of the Government’s direction of travel.

“It is welcome that landlords will not be required to invest substantial sums of money during a cost-of-living crisis when many are themselves struggling financially.

However, ministers need to use the space they are creating to develop a full plan that supports the rental market to make the energy efficiency improvements we all want to see.

“This must include appropriate financial support and reform of the tax system which currently fails to support investment in energy efficiency measures.”

View Full Article: REVEALED: Full details of Rishi’s U-turn on boiler ban and EPC rules

UPDATED: Full details of Rishi’s U-turn on boiler ban and EPC rules revealed

admin    Uncategorized     agents

Rishi Sunak has made a speech rowing back on several key green policies that were to cost landlords thousands but that were part of his key Net Zero pledges.

Announcing a ‘new approach’ to one of the biggest challenges faced by the UK – climate change – saying “we must reduce our emissions” and that politicians need to “look people in the eye and explain what’s really involved”.

He said this includes being honest about the real-life implicaitons of previous measures to reduce carbon emissions including banning gas boilers even though many properites are not suitable for a heat pump and mandatory EPC Band C upgrades in just a few years’ time.

Sunak also said that although many people, despite wanting to do their bit to reduce carbon emissions, should not have measures forced on them by politicians, espeically “those who are already struggling to make ends meet”.

He said without a national debate on carbon emissions reduction, the backing of the people for change would be lost, saying a more pragmatic approach is needed despite the need for ‘hard choices’ and a commitment to meet the UK’s existing Net Zero ambitions.

This includes giving property owners ‘far more time to move to heat pumps’ and ‘not forcing anyone to rip out existing gas boilers’ and only requiring property including landords to replace them with heat pumps once they have worn out and even then not until 2035. An existing boiler upgrade scheme will be raised by 50% to £7,500.

Sunak also referenced minimum EPC levels for properties, mentioning that the huge costs of upgrading homes is likely to be passed on as higher rents to tenants. The looming EPC changes due to go live for existing tenancies in 2028 are now to be scrapped, with more Government money instead being offered as a carrot to landlords and home owners to upgrade their properties.

Therefore fines for landlords who do not upgrade their properties to a minimum Band C by the 2025 and 2028 deadlines are therefore not off the table.

A survey out today highlights why the Government has rowed back – just one in five property owners told boiler repiar firm Fair Fix they supported the planned ban on gas boilers, with 94% believing it should be their decision as to what type of energy powers their home.

Earlier today Foreign Secretary Sue Braverman took to the radio and TV studios to defend the row back, telling both Times Radio and the BBC’s Breakfast Show that she applauded Sunak for making a “difficult decision” that showed “pragmatism and proportionality” saying “we’re not going to save the planet by bankrupting the British people”.

“We need to ensure that we take into account economic growth, household budgets and the cost of living,” she told Radio 4’s Today programme.

Former housing secretary Simon Clarke has said this morning: “I am very clear: The delivery of net zero should not be a hair-shirt exercise”.

Denial

But the U-turn on green policies shows there is much internal conflict within the Tory party. While Gove recently said he wanted to ‘soften’ the impact of green upgrades for landlords, a Government minister in the Lords last week denied any changes were in the pipeline.

Zac Goldsmith (pictured), who until recently was a minister in the Government, said: “His short stint as PM will be remembered as the moment the UK turned its back on the world and on future generations. A moment of shame.”

Alok Sharma, who chaired the recent CO26 summit, said it was important that Britain must stay committed to its Net Zero commitments.

Sunak is expected to make his speech this week but may reveal more details today following last night’s leak.

View Full Article: UPDATED: Full details of Rishi’s U-turn on boiler ban and EPC rules revealed

‘Landlords due millions of pounds in returned stamp duty overpayments’

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Scores of landlords could be owed thousands of pounds in stamp duty overpayments, according to a specialist tax firm.

Cornerstone Tax has returned £30 million to its clients as reclaimed stamp duty fees from HMRC during the past three years and points to some commonly overlooked stamp duty reliefs, exemptions and misconceptions that could result in a refund.

Landlords nearing retirement often transfer investment properties in and out of companies and family trusts, but Small Self-Administered Schemes (SSASs) and Self-Invested Personal Pensions (SIPPs) appear to have been a major source of errors, according to the firm.

A SIPP scheme allows someone to invest profits into their pension funds and pay stamp duty before the funds are deposited. 

When transferring a commercial property into a SIPP or SSAS pension, it’s likely that all the property owners will also be members of the pension scheme, so the total discount against the stamp duty amount normally due on the transfer of the property is 100%.

“Some solicitors and advisors may have advised their clients that stamp duty needed to be paid when it was not – meaning up to 75,000 people could be owed compensation of up to a staggering £80,000 each,” says group chairman David Hannah (pictured).

Overpaid

Cornerstone Tax adds that many homeowners may have overpaid on stamp duty due to errors in their properties’ status; you can claim relief when buying more than one property if a transaction, or a number of linked transactions, includes freehold or leasehold interests in more than one of them. 

It adds that when buying abandoned or uninhabitable properties, buyers might be eligible to pay a lower rate of stamp duty or qualify for a tax refund.

“Initiating a review promptly allows you to rectify the situation, gather evidence, and pursue appropriate actions to claim a refund or make adjustments as required,” says Hannah.

View Full Article: ‘Landlords due millions of pounds in returned stamp duty overpayments’

UPDATED: A few simple tricks can prevent your property being sold off under your nose

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The Land Registry titles register has been a target for criminal gangs for some time and literally millions of pounds are at risk if your home or rental property is wholly owned and mortgage free.

According to official figures, something like 99pc of property owners have failed to signed up to vital safeguards at the Land Registry, a simple measure that is sure to protect you from this type of crime. There are numerous variations on this crime theme and these clever scams have multiplied recently and during the pandemic property boom.

It’s a free protection process

For those who take advantage of the Land Registry’s free alert service a notification will be sent to you by email and the post when any local authority searches are made. A search is a red flag that a conveyancer is preparing your property for sale.

Setting up the service on the Land Registry website is a task that takes just a few minutes, but unfortunately only a minority of people actually take the time to do this, either because they don’t know about it, or they just can’t be bothered.

The Land Registry says that just around one quarter million of Britain’s 29 million homes have been set up on the Land Registry’s anti-fraud “property alert service” which has been available free since 2014.

The Daily Telegraph reported the case of a Luton man who returned home from working away to find his house had been sold by scammer criminals and all his furniture had been removed from the house. When he arrive home after neighbours had called him he was greeted by the new “owner” of the house, the illusive scammers having syphoned off all the sale proceeds.

This is not an isolated incident. It’s been happening for years, with hundred of people being affected, and it’s been getting worse as time goes on. Last year The Land Registry was forced to pay compensation of £3.5m to owners of properties who fell victim to the scams, a figure which is over 60% up on the previous year.

Fortunately owners have state protection, a state guarantee through a special indemnity fund for financial crime that will usually compensate owners, but this nowhere near compensates for the stress and upheaval, let alone the consequential losses suffered.

Title fraud and registration fraud

Title fraud is where a criminal steals a property owner’s identity and changes the property title from the owner’s name to their own. They will do this through the Land Registry website, making an application without your knowledge by registering a forged transfer or mortgage. The criminals then apply for loans using the property as collateral.

During the Covid period people had been self-isolating in their own homes and many had a business property that was unoccupied. Business premises were not safe either from fraudsters who had been taking advantage of the pandemic to make more money in this way. Now the pandemic’s over, this does not remove the threat.

Even when you live in the property, this won’t stop fraudsters from perpetrating their clever tricks.

Those most at risk

Most at risk from these types of fraud are people who own their properties outright, without the encumbrance of a mortgage. Secondly, an empty or tenanted property is more at risk.

• Those owners not registered with the LR alert service
• absent owners, either abroad, in hospital, in care homes etc
• landlords and those with tenanted properties
• beneficiaries of owners who have died
• long-time owners with more equity in their property
• sole owners
• properties at most risk are
• high value properties
• empty properties

The Land Registry says that combating these types of fraud is priority.

“Our specialist counter fraud teams focus on detection, prevention and education, working with professional conveyancers, such as solicitors, who are required to make checks to prevent fraud and money laundering. We are actively encouraging conveyancers to use digital cryptographic ID checking as a more secure means of identifying people,” a spokesperson has said.

What can you do to stay safe?

Us the Land Registry’s Property Alert service. Simply sign up on the website to receive email alerts from HM Land Registry by setting up a Property Alert account. The Land Registry says you can monitor the property of friends or family and any commercial property you own. If anyone applies to change the register for a property you are monitoring you (and if you so decide, someone else, like your solicitor) will be notified immediately.

Bear in mind, landlords are more at risk than the general population. Make sure HM Land Registry has your up-to-date details, correct name and address and email. Without this you might miss official letters or notices alerting you to a fraudulent application.

View Full Article: UPDATED: A few simple tricks can prevent your property being sold off under your nose

PM’s re-think on emissions targets inspired by EU changes

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An oil boiler ban would prevent all new oil boiler sales to homes in off-the-grid areas – that is homes without access to mains gas – by 2026. It was part of the Government’s plan to speed up its route to net zero emissions by 2050.

The oil boiler ban would force households who cannot use mains gas boilers – primarily those in rural areas – to look to alternatives, mainly those in the Government’s energy efficiency proposals, meaning heat pumps.

Some are arguing that such a ban on oil boilers would cause real hardship for may people and that the ditching of the target would be a pragmatic move, though there is opposition to these changes even among Tory MPs.

It has also recently been announced that fines for landlords who have not upgraded their properties to a minimum rating of “C” by 2025 for existing and 2028 for new tenancy deadlines are not likely to be imposed.

Newspaper reports say that the PM, Rishi Sunak, plans to delay the 2030 ban on new petrol and diesel cars until 2035 and slow the phasing out of gas and oil boilers – but he still plans to hit the Net Zero target by 2050

By scaling back the Government’s green pledges, by delaying the ban on new petrol and diesel cars from 2030 to 2035, and by slowing the phase-out of gas and oil boilers, it is argued, would relieve pressure on both consumers and manufacturers.

Impact on households

Any move such as this is seen as a direct response to concerns about the high cost of the Government’s pledged green initiatives and their impact on households, and of course landlords. There is as yet to be any firm announcements on this or any delays to the Government’s targets on meeting stricter EPC ratings for rental homes.

There is likely to be further news in the PM’s Question time at noon today when it is excepted that PM Rishi Sunak will argue for a more pragmatic approach to achieving net-zero carbon emissions by 2050, but emphasising that this goal can still be met without imposing overly burdensome changes on the public.

Into line with EU

These potential changes would bring into line the UK with the EU’s decision to delay the petrol and diesel ban deadline to 2035 and relax targets for gas boilers and other energy efficiency regulations.

This move will bring political controversy as, while there is some support for suggested these adjustments, there will be vocal support against as others worry they may undermine environmental commitments and economic growth.

German manufacturers influence

The European Union and Germany reached an agreement in March allowing some internal combustion engine (ICE) cars to be sold beyond 2035. A vote on phasing out petrol and diesel cars in the EU by 2030 was delayed due to luxury car manufacturing centre Germany’s intervention.

However, at the time the UK Government said it would maintain its ban on the sale of new ICE cars and vans from 2030, ruling out an expensive e-fuels as an alternative. Some countries, including Poland, Italy, the Czech Republic, and Bulgaria, opposed the ban, while Austria supported Germany’s stance.

The EU’s deal with Germany did not change the existing regulation but allowed cars running exclusively on e-fuels to count toward CO2 targets. Net Zero Watch at the time called on the UK to reconsider its 2030 ICE car ban in light of the EU’s decision.

The EU law will require all new cars sold to have zero CO2 emissions from 2035, and 55% lower CO2 emissions from 2030, versus 2021 levels. The targets are designed to drive the rapid decarbonisation of new car fleets in Europe.

PM plans a speech

Meanwhile, the UK Prime Minister will set out the changes in a speech in which it is said he will recommit to hitting ‘net zero’ carbon emissions by 2050, a target already enshrined in law.

But he will argue that the goal can be met with a more ‘pragmatic’ approach that does not force onerous changes on the public.

A political move?

Government ministers believe the move could transform Tory fortunes as it will assist struggling households during what has been dubbed a cost of living crisis.

Mr Sunak has been quoted as saying that “governments of all stripes have not been honest about costs and trade-offs, Instead they have taken the easy way out, saying we can have it all.”

“This realism doesn’t mean losing our ambition or abandoning our commitments. Far from it. I am proud that Britain is leading the world on climate change. We are committed to net zero by 2050 and the agreements we have made internationally – but doing so in a better, more proportionate way. Our politics must again put the long-term interests of our country before the short-term political needs of the moment,” the PM said.

The Prime Minister has confirmed that he has planned a speech on these issues in which he is expected to argue that further changes will be “realistic and pragmatic”.

View Full Article: PM’s re-think on emissions targets inspired by EU changes

The Telegraph wants to speak to landlords about EPC ratings

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Are you a landlord who has spent money upgrading their properties to an EPC C rating? Then, Alexa Phillips, the personal finance reporter for the Telegraph would like to speak with you.

Alexa would also like to speak to landlords who have sold properties because they were concerned about looming EPC targets.

View Full Article: The Telegraph wants to speak to landlords about EPC ratings

Landlords urge Welsh Government to ditch rent control proposals

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The NRLA has urged the Welsh government to ditch rent control proposals as the worst possible idea for a PRS facing a chronic supply and demand crisis.

Its response to the government’s Fair Rents & Adequate Housing consultation argues that any move to introduce rent controls would have a disastrous impact, with evidence suggesting they can stifle investment and even force overall rents up.

It says landlords are already wrestling with extensive changes under the Renting Homes (Wales) Act – with new deadlines later this year – and that they would benefit from time for these changes to bed in before new rules around letting are introduced.

According to the NRLA, the Act’s implementation has damaged landlord confidence, as evidenced by the high level of possessions that took place in the first quarter of the year – a 253% rise in accelerated possession claims year-on-year.

Rent control measures

The government’s consultation explores four potential rent control measures including a ceiling or freeze, limiting annual rent rises to pre-agreed percentages and only allowing rent rises when a tenant moves out and the property is advertised afresh.

Welsh landlords could also face rent restrictions based on limits to yield using a formula, and a ‘costs plus’ model.

Instead, the NRLA suggests looking at ways to support tenants to pay market rents along with a Welsh Housing Survey to collect data from across the housing sector.

Chief executive Ben Beadle (pictured) reckons it’s difficult to think of any policy measure likely to worsen the current situation more than rent controls.

He says: “If the Welsh government is serious about addressing high rents and a lack of supply, it must take tangible steps to increase housing supply. A good place to start would be to back our calls for pro-growth measures to encourage investment in homes to rent.” 

View Full Article: Landlords urge Welsh Government to ditch rent control proposals

Damp issues in flat – problems with tenants?

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Hello, I have a two bedroomed ground floor flat. The current tenants have been there for four years now. Last year, they began to complain of excessive damp within the property. I had a damp survey done and was advised to have the air bricks repaired and renovated as they had collapsed within the cavity and were no longer effective.

View Full Article: Damp issues in flat – problems with tenants?