Get your skates on! Nearly half of landlords planning to apply for a Green Homes Grant

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The Green Homes Grant is proving a hit with landlords with just under half saying they plan to take up the government’s £5,000 cash offer, according to research by lender Paragon.

But it says landlords need to get their skates on; there are only 650,000 vouchers available to home owners whether they are landlords or not, and the vouchers must be redeemed and the work completed by 31^st March next year.

The popularity of the grant among landlords is not surprising – the Covid-related scheme, which is designed to both generate economic activity and help the government reach its green targets, coincides with the new Mandatory Energy Efficiency Standards (MEES) that went live on April 1^st this year.

Change of tenancy

These now prevent landlords letting properties with an EPC rating of F or G even where there has been no change of tenancy, and they must now improve the property rating to E or register an exemption if they want to continue to let it.

The Green Homes Grant therefore helps landlords bypass a major stumbling block that dogged previous efforts to encourage landlords to upgrade their properties; cost.

That’s because the MEES funding rules prior to Covid capped a landlord’s spend at £3,500 and, if a property could not be brought up to an E rating at that price, then an exemption could be applied for.

The Green Homes Grant pays two-thirds of the cost of improving a property up to £5,000, with the landlords paying the rest.

Richard Rowntree, MD for mortgages at Paragon, says: “Doing this, with the help of government subsidy, benefits the landlords themselves, their tenants and the environment, so it’s a sensible move.”

Read the full updated MEES regulations.
MORE: 15 important dates for landlords this including MEES.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Get your skates on! Nearly half of landlords planning to apply for a Green Homes Grant | LandlordZONE.

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The National Landlord Investment online Super Show – Tuesday 3rd November

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The National Landlord Investment team to host their online Super Show, Tuesday 3rd November with over 1200 minutes of free content! Join the team and over 40 expert speakers and connect with 50+ exhibitors online. Click Here

The team delivered their first online event on 8th October which covered the Midlands and Manchester areas.

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We are now in a completely different operating environment

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In the past, if someone was in a reasonable job, I was willing to risk taking them on without a guarantor. In fact, it seemed rude to ask a professional in their 30s or 40s for one. The worst thing that could happen would be me losing about 6 months rent –

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Exclusive blog: Are we all ready for the green upgrade challenge?

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As the Covid-19 pandemic dominates our lives it’s difficult to look beyond the immediate future. But life and lettings go on including the government’s recent unveiling of dramatic energy efficiency targets for landlords. 

Plans to raise minimum energy efficiency standards for rental homes were revealed last month, to coincide with the launch of the government’s new Green Grants scheme. 

As of this year all rental properties (other than those with valid exemptions) must have an EPC rating of E or higher to be legally rented out. 

The government now plans to raise this level to C – or higher – from April 2025 for new tenancies and from 2028 for existing tenancies.  

The plans include a cost cap of £10,000 per property and a £30,000 fine for non-compliance. 

As a landlord myself I understand the need for improvements across the sector – and the benefits that come from energy efficient homes for landlords, in that they are more attractive to potential tenants, and renters as they mean cheaper bills. 

Older homes 

Landlords are already making improvements. The latest English Housing Survey figures show the number of rental homes with an energy-efficiency rating band of A–C has increased over the 10 years to 2018 from 11.6% to 32.6%. 

But there will be challenges for many, particularly those with older properties particularly pre-1919 homes, or those that are off-grid, or in areas where the cost of upgrades is disproportionate to property values. 

According the English Housing Survey 33% of homes in the PRS were built before 1919 so are likely to have solid walls, making insulation much more difficult. Listed status can also affect landlords’ abilities to make changes. 

More broadly, there is also the issue of ‘moving goalposts’. If the government wants to go ahead with this plan, and make no mistake, it is committed to this direction of travel, there needs to be clear, long-term proposals for the trajectory of change along with a package of funding to support landlords. 

This will help us to plan changes and improvements to our properties over the next 10 -15 years and how to fund them. 

The Government is looking to move to ‘low carbon-heat ready’ in the private rented sector by 2030, which means making as many changes to the fabric of buildings as is possible in anticipation of the phasing out of gas boilers, as has already been announced for new-build homes. 

In all the Government has committed £9.2 billion in its manifesto to energy efficiency measures and we will continue our ongoing campaign to ensure a share of that is used towards support for the private rented sector. 

My colleagues in our policy department are now working on our response to the consultation, which closes on December 30. 

This means it is unlikely any new laws will be passed until next March at the earliest. 

Green Homes Grants  

The Green Homes Grants are the first move by the Government to incentivise energy efficiency improvements in rental homes. 

Through the scheme the Government will provide vouchers that will cover up to two thirds (67%) of the cost of qualifying improvements up to £5,000.   

Split into primary and secondary, you must qualify for primary measures before you can apply for secondary measures and the installer will receive payment from the government for the costs covered by the voucher.  

But if you want to take advantage of this funding – which is available in England only – you will need to move fast. 

Not only is the time period set by Government tight – ending on March 31, 2021 – by which time work needs to be completed – there are could also additional issues finding accredited tradespeople people to do the work, with more and more areas entering Tier 2 and 3 coronavirus measures, meaning greater restrictions. 

The system may seem confusing – but it is not often government cash is made available in this way and it is worth remembering that although there is a cost to you as a landlord the improvements will still need to be made at some point when the funding is gone. 

For help in navigating the process our website now includes a step-by-step guide to accessing the grants for members. We also held a webinar on the issue, which can be accessed by members here.  

We will be holding a second webinar on the issue on December 9. To register keep an eye on our webinar pages here. 

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Exclusive blog: Are we all ready for the green upgrade challenge? | LandlordZONE.

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Join us! Watch exclusive LandlordZONE/NRLA Covid update webinar

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LandlordZONE has teamed up with the UK’s largest landlord trade body the NRLA to jointly host a webinar on Tuesday 1^st December that will give landlords a lowdown on Covid and its impact on the housing market and legislation.

Both organisations have worked with renowned industry trainer Susie Crolla from the Guild of Letting and Management to create the webinar, which will begin at 10am.

It will be hosted by the irrepressible Paul Shamplina of Landlord Action and Channel 5’s ‘Nightmare Tenants, Slum Landlords’ TV show.

“This three hour course will be presented in a practical format to help you navigate your responsibilities as a landlord during the coronavirus crisis,” he says.

Susie and Paul will be joined by Ben Beadle, chief executive of the NRLA.

Topics to be covered will include:

• An overview of the impact of COVID-19 on landlords including the changes to eviction notice periods.
• Understanding your legal and compliance responsibilities such as gas and electrical safety, tenant fees and more.
• How to use resources to make the running of your property business easier including how to choose the ideal letting agent.
• An update from the NRLA on the lobbying and financial support currently being worked on including the Renters’ Reform Bill.

“In such unprecedented times we wanted to give back to landlords with a comprehensive webinar that updates and informs them about the Covid crisis from a practical, political, business and property management point of view,” adds Shamplina.

The Being a professional landlord during COVID – legal and compliance update webinar costs £25+VAT. > Click here to book. <

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Join us! Watch exclusive LandlordZONE/NRLA Covid update webinar | LandlordZONE.

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Are These Auction Property Deals Worth it?

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In this video we have a property auction review of some of the best property investment deals coming at auctions Allsop, Acuitus Auction House and Auction House London by myself, Rod Turner, Jay Howard and Piotr Rusinek.

In this episode

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Housing minister dashes hopes of a stamp duty holiday extension

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Landlords banking on the Chancellor to extend his stamp duty holiday and help them either buy or sell properties have had their hopes dashed.

Housing minister Christopher Pincher (pictured) has told parliament that the “government does not plan to extend this relief and will continue to monitor the property market”.

Pincher made the comments in answer to shadow Justice minister Peter Kyle (pictured, below) who was wondering if leaseholders trapped by ongoing cladding scandal would be given more time to sell their homes via the stamp duty ‘nil rate’ band.

But the housing minister went further and said that the stamp duty holiday, which is due to run out on 31^st March next year, was only designed to give the housing market a shot in the arm following the initial Covid lockdown.

Saving anyone buying a property under £500,000 some £15,000 on average, the holiday does not include the additional 3% duty that landlords and second-home owners pay.

Conveyancing delays

Calls for the Chancellor to extend or modify the scheme have been growing lounder in recent weeks as conveyancers have struggled to handle the huge number of property sales that flooded the housing market after the Covid lockdown, and which is still working its way through the system.

This led the Conveyancing Association to warn that any sales agreed after the end of September were unlikely to progress to completion before the cut-off, stranding some 365,000 sales.

Leading industry figures to call on the Chancellor to enable sales agreed to be included within the cut-off date or taper the system to avoid a ‘cliff edge’.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: ‘The loss of so many transactions caused by the ending of the stamp duty holiday could have a devastating effect, not just on the property market but the wider economy”.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Housing minister dashes hopes of a stamp duty holiday extension | LandlordZONE.

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Nowhere to hide? Data to shed light on Airbnb and other short lets for first time

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A new monthly analysis of serviced apartments, short-term rentals and hotels is to launch soon that will provide vital details about performance in the sectors and enable government and local authorities to understand what is going on.

The UK Short Term Accommodation Association (STAA) has teamed up with data analytics firm STR to launch a tracking study to measure the three sectors simultaneously.

It will produce monthly and year-to-date performance metrics on occupancy, average daily rate and revenue per available room for hotels, short-term rentals and serviced apartments, as well as information on the average length of stay and cleaning fee per stay of short-term rentals.

STAA chair Merilee Karr (left) says it’s further evidence of the association’s commitment to help the short-term rentals sector grow responsibly and sustainably.

“The data that STR will share with us will give a cross-industry insight that has never been seen before,” says Karr.

“It will allow our members and industry commentators to get a measurable and credible picture on how our sector is growing and on how the different sectors within the industry compare.”

She adds that it will then use this evidence in conversations with Government and local authorities to help with evidenced-based discussions on the sector.

Several of London’s biggest short-term rental operators such as Guest Ready, Seven, Urban Stay and UnderTheDoormat have already been recruited to take part in a pilot in London this month.

Visit the UK Short Term Accommodation Association (STAA)
Read more about the STAA.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Nowhere to hide? Data to shed light on Airbnb and other short lets for first time | LandlordZONE.

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Calls for rent controls intensify as tenants’ union launches manifesto for Scottish election

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Scotland’s tenants’ union is calling for widespread rent controls to level the housing playing field ahead of the country’s May general election.

Living Rent says it’s is a vital opportunity to rebuild a fair, just, affordable housing system for tenants in the wake of the pandemic which has exposed pre-existing fractures.

The group’s new manifesto suggests a points-based system of rent controls linked to the quality and amenities of a property, rather than just market rates.

Its manifesto advocates that rent controls should be tied to the property, rather than the lease, adding: “This would stop landlords being able to hike rents between tenancies and continue to push up market rates.”

Living Rent believes this would incentivise housing providers to maintain and improve their property, while keeping an overall cap on rents.

An independent Scottish Living Rent Commission could then act as mediator while a new Scottish Rent Affordability Index could peg maximum rents at affordable levels for tenants to ensure affordable rents for all.

It says the current measures in place to limit rent increases have failed.

“Stipulations in the legislation mean that three years since rent pressure zones were introduced, no council has been able to implement them,” it adds.

“Even if they were to be introduced, there is no evidence they would be sufficient in tackling the hardship faced by tenants.”

Other suggestions in the manifesto include giving local registered social landlords first refusal on making an offer to buy properties that were privately acquired under right to buy legislation.

Visit Living Rent.
Read more about the existing proposals for rent caps in Scotland currently being scrutinised by its MSPs.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Calls for rent controls intensify as tenants’ union launches manifesto for Scottish election | LandlordZONE.

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New 30 day CGT reporting and split commercial/residential property?

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Can anyone clarify the new rules? UK residents must now declare any Capital Gains due on a residential property within 30 days of completion.

According to the HMRC website, the rules do not apply to Commercial property. My solicitor has said that if any part of a property is rated Commercial then the whole property is deemed Commercial.

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