Comment: how will the turmoil in the finance and energy markets affect buy-to-let landlords?

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The fallout from Kwasi Kwarteng’s mini-budget sent the money markets into blind panic and few short weeks ago, and the knock on effect was felt right than across the buy-to-let mortgage marketplace.

The episode was a short lived panic following the “mini” budget announcement. But now, around a month later, with a new Chancellor and a new Prime Minister, although the money markets are still reeling from the fall out, there are signs the mortgage market is beginning to stabilise.

A world economic problem

Of course, a hike in interest rates was already on the cards before Kwarteng made his appearance, mainly led by the American central bank’s policy of steadily raising interest rates to combat inflation, which is raging at around 10 per cent in most Western countries. The unfortunate consequence of this, the consensus of expert opinion suggests, is that economies will slow down and go into a recession.

The Bank of England Base Rate has been following suit with steady rate rises and more to come, but the mini budget, with it’s promise of big tax cuts and huge unfunded spending commitments, had the effect of sucking the confidence out of the UK money market. The result was a rapid rise in the SWAP rates upon which fixed-rate mortgages and pension funds are pegged.

With the appointment of a new Prime Minister, both his and the Chancellor’s plans for the economy have brought some confidence back into the UK market, which in turn has meant the rise in SWAP rates seen after the mini-budget has been largely reversed. In consequence there’s a good chance we will see fixed-rate mortgages pricing drift lower again.

However, don’t raise your hopes too high, we’re unlikely to see the lows in mortgage rates that we’ve become accustomed to in recent years. As economies continue to battle inflation and a cost of living crisis we won’t see these low rates any time soon. But there are nevertheless some signs that rent-to-interest (RTI) calculations will soften again with a more settled fixed rate mortgage market environment.

Challenging times ahead for landlords

It’s abundantly clear that landlords and property investors are in for a tough ride over the coming months and perhaps years ahead. Not only will they endure volatile money markets – the cost of living explosion will put pressure on tenants’ incomes and therefore rent payments – but there’s an ever-changing political and fiscal backdrop – new legislation is coming along to challenge even the hardiest small-scale landlord.

Yes, the tail end of 2022 will be a challenging. Bbut then opportunities will arise for those enterprising landlords who are ready and prepared to take advantage. There’s a huge shortage of suitable reasonably priced accommodation for tenants in many parts of the country. The demand is there. This will underpin the investment risk for a buy-to-let investment, and should still give a competitive return compared to alternative investments types, when properly managed.

Rents continue to surge

It’s fair to say that most landlords – contrary to popular belief – don’t increase rents during the tenancy term or even over the lifetime of a tenancy in some cases, and some even fail to increase when re-letting, but safe to say average market rents have risen steadily, reflecting the shortage.

New-build numbers are still well below government targets and it will likely take years for build-to-rent developments to fill the void and even out the supply-demand imbalance.

Landlords leaving the sector

With income and regulatory pressures causing some landlords to leave the sector, and the flow of new rentals coming to market well below the long-term trend, there are real signs of a looming housing market crisis facing Government – something this new Government team should take urgent notice of.

The regulatory challenge

Putting aside the challenges posed by the Renters Reform Bill: the banning of section 21 and fixed term tenancies, one of the biggest financial challenges and causes of concern for the future of buy-to-let is the changes being introduced to the Energy Performance Certificate (EPC) requirements, governed by the Minimum Energy Efficiency Standard (MEES) regulations.

This is the set a minimum energy efficiency standards of EPC ratings currently set at “E” for domestic as well as commercial private rented properties in England and Wales. But the government has committed to upgrade as many private rented sector (PRS) homes as possible to Energy Performance Certificate (EPC) Band “C” by 2030, where this is practical, cost-effective and affordable, and this could be introduced sooner rather than later.

Raising the energy performance standard to Energy Performance Certificate (EPC) rating “C” will not be easy in many of those cases of traditional build (solid wall) older properties, and consequently will be expensive.

A revised phased process for achieving these improvements for new tenancies from 2025 and all tenancies from 2028 is the latest indicator the Government has proposed, taking into consideration issues of financing, enforcement, measuring energy performance and exemptions.

The Government’s aims for improving the energy performance of privately rented homes include:

• Cutting bills for low income and vulnerable tenants
• Lower energy bills for tenants in general, providing warmer homes
• Boosting the quality, value and appeal of landlords’ assets
• Providing improved energy national security through lower energy demand on the grid and reduced fuel imports

In support of this the preferred policy scenario would follow these four key principles:

• Raise the energy performance standard from EPC from “E” to “B” and “C”
• Phase-in improvements for new tenancies from 2025, and for all tenancies from 2028
• Increase the maximum investment requirement for landlords from £3,500 to £10,000
• Introduce a tackle ‘fabric first’ approach to energy performance improvements.

These are some obvious practical ways that landlords can improve the energy efficiency of their properties:

– Upgrade loft insulation – perhaps the most effective energy saver, preventing heat loss through the ceiling and roof

– Add cavity wall insulation or where the walls are solid, insulate the walls – perhaps the second most effective way to preserve warmth in the home

– Add double glazing – to reduce heat loss and noise pollution

– Upgrade heating boilers – will improve heating efficiency, create a warm home, reduce condensation and damp and reduce bills

– Upgrade draught proofing – to minimise the loss of heat by preventing warm air escaping and cold air streams coming in the home

– Fit LED lighting – it’s more energy efficient and cuts electricity costs

– Add smart heating controls and meters – aids to energy conservation and monitoring

Energy efficiency and mortgage applications

Mortgage lenders are now much more aware of the importance of energy efficiency ratings to the marketability of rental properties. Mortgage companies are increasingly adding EPC ratings to their lending criteria.

This is because, if they need to re-possess a rental property they want to be in a position to achieve the best possible price when they put the property on the market, or more likely auction it off. Some lenders are now stipulating less favourable mortgage rates for rentals with EPC rating below “C”, and in other cases loans have been refused altogether.

View Full Article: Comment: how will the turmoil in the finance and energy markets affect buy-to-let landlords?

Firms involved in £2.4 million property investment scam are shut down

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A group of companies involved in ‘substantial’ property investment scams has been wound up by the High Court and an official received appointed to liquidate the four firms involved.

These are Sentor Solutions Commercial Ltd, Fabcourt Developments Ltd, Sentor Solutions Advisory Ltd and Sentor Solutions Ltd, all of which are part of the Sentor group.

Sentor Solutions Advisory Ltd and Sentor Solutions Ltd recently changed their names and were trading as Hall Contracting Services Ltd and Clarkson Murphy Partners Ltd respectively.

Investors were lured in by promotional material (pictured) via Fabcourt, which claimed that Sentor Solutions Commercial and Clarkson Murphy Partners were the Security Trustee for the investment scheme, which promised fixed rate 8% return investment products known as ‘convertible loan notes’ with high monthly or quarterly interest rates for a duration of two to three years. Investors were asked for a minimum of £50,000.

Assets

The claims of returns and trustworthiness were false – and an investigation by The Mirror newspaper earlier this year found that many claims about Fabcourt on its website were made up, including fake names and stolen photographs provided as its ‘directors’ along with claims it had assets totalling £140m.

In March last year the Financial Conduct Authority (FCA) warned that Fabcourt ‘may be providing financial services or products in the UK without our authorisation’.

Also, investors were not made aware that Fabcourt was the successor to Sampson Property Developments Ltd, previously known as Texmoore Limited, which had operated the same scam until it entered into compulsory liquidation on 23 March 2022 following a creditors petition.

£2.4 million

The two scams combined attracted some £2.4 million, and in both cases the companies told investors the loan notes involved were ‘government-backed and that the investments were covered by the Financial Services Compensation Scheme, neither of which was true.

The Insolvency Service investigation into the companies established that the Sampson Property Developments and Fabcourt Developments schemes were part of an investment fraud collectively operated by the companies.

And having received funds from would-be investors in the Sampson Property Developments and Fabcourt Developments schemes, the companies made a handful of monthly interest payments to the investors before going silent, leaving many substantially out of pocket.

The properties set out in promotional materials were found to be owned by unrelated entities, and videos promoting the investment schemes had been cloned.

Culpable parties

Edna Okhiria, Chief Investigator at the Insolvency Service, says: It is undeniably in the public interest for these companies to be prevented from continuing to trade, which will enable the Official Receiver to carry out further investigations into the activities of the Companies to establish the extent of its liabilities, the position as regards any assets, the whereabouts and conduct of the directors and any other culpable parties.

“These companies operated a fraudulent scheme whereby they mislead the public, falsely claiming that the Texmoore and Fabcourt investment schemes were regulated to provide the veneer that funds invested were protected when in fact they were not.

“These claims induced investors to invest substantial sums. The companies then failed to make more than a few monthly interest payments, leaving investors substantially out of pocket.

“The Insolvency Service, alongside our partner agencies, continues to investigate schemes such as these and to pursue enforcement against those responsible for facilitating them.”

View Full Article: Firms involved in £2.4 million property investment scam are shut down

LATEST: New Housing Minister is a landlord as Gove clears out Truss appointees

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Landlords might have found themselves an ally in the newest minister at the Department for Levelling Up, Housing and Communities.

Lucy Frazer – the latest MP to join returning boss Michael Gove – is a landlord who rents out a property in London and also defended the government’s decision to stand down eviction protections for residential tenants after the pandemic.

She told BBC Question Time in 2021 that tenants had been “protected for a long period of time”, adding “it is important that landlords can take control where necessary”.

A fan of Rishi Sunak, Frazer publicly backed the new prime minister, tweeting this week: “I am confident that our principled and tremendously capable PM will lead us effectively through these economically challenging times.”#

Brief spell

The Conservative MP for South-East Cambridgeshire since 2015, she had a brief spell as transport minister during Liz Truss’s premiership and was previously treasury minister and a minister in the Ministry of Justice. She has also been solicitor general and before becoming an MP was a practising barrister.

Although Frazer’s specific responsibility has yet to be announced, she will join other senior colleagues in the department: Dehenna Davison, minister for levelling up, Baroness Scott of Bybrook, minister for communities, and Lee Rowley, who last month was announced as the MP replacing Eddie Hughes, taking up the housing brief.

Only this morning, former ministers Paul Scully and Andrew Stephenson were quietly removed from the department’s website.

View Full Article: LATEST: New Housing Minister is a landlord as Gove clears out Truss appointees

Landlord fined £22,000 over ‘squalid’ block of flats in London

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The landlord of a block of flats which left leaseholders and tenants living in squalid and unsafe conditions for years has been fined £22,000.

Islington-based Proposed Company Limited failed to fix problems including a leaking roof, damp, mould, and a pigeon infestation – some of which had been reported more than a decade ago. Barkingside Magistrates Court heard that it had also ignored multiple abatement notices from Barking and Dagenham Council.

Housing officers received complaints from residents in shops on the ground floor and maisonette flats on the first and second floor in Whalebone Lane South, Dagenham (pictured).

Pigeon problems

They issued two abatement notices – one for a pigeon infestation in the roof and the other for the leaking roof – however Proposed Company, which bought the building in 1993, ignored the notices and failed to carry out any maintenance. Along with the £22,000 fine, it was also ordered to pay £150 costs and a £190 victim surcharge.

Councillor Syed Ghani (pictured), cabinet member for enforcement and community safety, says: “The building owners showed a flagrant disregard not just for the law, but also for the health and safety of the people forced to live in squalid and unsafe conditions caused by their greed.”

He adds: “We hope this sends a strong message to anyone who hopes to prioritise profit over people that we will take action when necessary.”

View Full Article: Landlord fined £22,000 over ‘squalid’ block of flats in London

Michael Gove – A name to chill a landlord’s spine

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Looks like Hallowe’en has come early for landlords with the announcement that Michael Gove has returned to the Government fold.

And, for me at least, that’s a huge shame.

Because while Gove has a strong reputation for getting things done – he is poised to undo the private rental sector.

View Full Article: Michael Gove – A name to chill a landlord’s spine

Tenant demand hits new all-time high

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The proportion of landlords who are reporting increasing tenant demand has hit an all-time high – for the second time this year.

The findings from Paragon Bank found that a net increase in tenant demand during the past three months was seen by 65% of respondents.

View Full Article: Tenant demand hits new all-time high

Foot-dragging on Renters Reform Bill ‘damaging PRS’, says big property firm

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The seemingly endless delays to the Renters Reform Bill are prompting landlords to leave the market due to uncertainty around potential changes, says one property expert.

Despite former Housing Minister Simon Clarke recently assuring Parliament that the Bill would be introduced in the next parliamentary session, in practice this means any time before spring 2024, according to Joanne Millward (pictured), divisional lettings coordinator at property consultancy Fisher German, who believes this is creating anxiety in the sector.

The white paper, A Fairer Rented Private Sector, aims to reform rules around the rental sector and includes a commitment to replace Section 21 evictions, the adoption of a Decent Homes Standard and appointing a new ombudsman – but still has no definite date.

Press ahead

Millward is urging the government to press ahead with putting the Bill through Parliament as she says that although the proposed reforms will not be entirely helpful to landlords, the delay is causing harm.

“The industry is essentially stuck in limbo until we know the details of what will appear in the legislation,” she says.

“While the white paper improves rights for tenants, some of the proposals in it will make becoming a landlord more difficult and will give current landlords more problems to deal with.”

It’s yet another reason for many to sell up, reducing rental stock across the country, adds Millward. “The supply of rental housing is already under strain in the UK, and this delay is only making it worse by discouraging landlords to keep going.”

Read more about renting reform.

View Full Article: Foot-dragging on Renters Reform Bill ‘damaging PRS’, says big property firm

Landlord vents anger at councils who tell bad tenants to ignore eviction notices

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A concerned landlord has shared his frustration at the way councils manage problem tenants facing eviction by telling them to stay put while they are found alternative accommodation, informing the tenants that they will be making themselves ‘intentionally homeless’ if they move out.

His “tenant from hell” was physically violent, had mental health issues and threatened neighbours, while wrecking his house – but he ended up having to bear the burden.

After he served a Section 21, she found another property, but became violent before moving in and the new landlord refused to give her a tenancy. However, the council insisted that she move back to her original home because she had a six-month tenancy.

“I tried to persuade officers that it would have been more sensible to get a court to grant possession, as there was a strong likelihood of the tenant being homeless very soon, requiring me to incur unnecessary and substantial costs,” he tells LandlordZONE. It refused.

Insult to injury

To add insult to injury, despite having provided evidence to Universal Credit, including a statement from the prospective landlord and council that she didn’t move in, it refused to reinstate benefits to his property as she’d told them she had moved.

While advising tenants to remain until bailiffs arrive or a court order is produced, councils don’t warn tenants about the possible consequences of such an action, says the landlord.

Bailiffs or High Court Enforcement Officers can turn up without notice so tenants have an hour to vacate, putting their belongings at risk, while the landlord can then get an order for costs and a County Court Judgement against them, which affects their credit record and might also dissuade prospective landlords from offering accommodation.

“It seems this policy of advising tenants not to move happens, not because it is the right thing to do but because it is the easiest option given the problems, cost and officer time associated with the alternatives,” he says.

Read more about evictions.

View Full Article: Landlord vents anger at councils who tell bad tenants to ignore eviction notices

TOM ENTWISTLE: ‘Preparing a boiler for winter in rental properties’

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As winter approaches landlords’ thoughts turn to frozen pipes, water leaks, damp and condensation in rental properties.

And Boilers provide the heat that will prevent all of this so they need your special attention.

These issues are what landlords’ nightmares are made of. They all have the potential to wreck your property and can cost you a fortune to put things right if there’s a massive water leak, not to mention the rental income you’re likely to miss in the meantime. Insurance might cover some, or all of the cost if you’re lucky, but that doesn’t cover the anguish it causes you and your tenants.

The thing is, all of this is avoidable given the right kind of attention played out by you and your tenants. But you as a landlord can only do so much.

It needs attention given to the issues by your tenants to prevent these problems, especially preventing frozen pipes which lead to busts. It also needs basic education in many cases – tenants are not always aware of what’s needed, especially if they’re young and have never managed a home before.

Importance of the boiler

Central heating boilers, which also supply hot water, are usually of the combination type and ubiquitous in rentals. At an average cost of around £2,000 plus fitting they are perhaps the most expensive item in the rental. They require regular servicing, and mandatory checks by a Gas Safe engineer if they run on gas.

Boilers also pose a potential risk of producing deadly carbon monoxide (CO) gas if they are not properly serviced, so it’s important to have a CO monitor in close proximity to the device. Occupants also need a certain amount of knowledge to make sure the controls and settings are optimised, that the system remains pressurised at the correct level and that any air in the system is bled out from the radiators from time to time, to maintain efficient operation.  

What can the landlord do?

My preference is to explain to my tenants exactly what they need to do as winter approaches. Total landlord’s guide to boilers and heating contains lots of useful information, from how to bleed radiators to top heating tips for tenants. First off, boiler controls. Explain how they work and how to set the thermostats in rooms and those fitted to radiators, how to set timers and monitor the system pressure.

Most tenants should be capable of bleeding the radiators if necessary, but they need to know that after bleeding the system it will need to be repressurised correctly, at the boiler. If the system pressure should drop repeatedly then there is most likely a fault with the boiler or a leak in the system, so the landlord should be informed.

I believe that keeping the house on a low heat when you are out or away from your home for a short time is vital to prevent pipes freezing up. And in the long run it is more economical than having to re-heat your home from cold every time you come in.

Prevening condensation in the home is also key – by venting steam at its sources, such as when cooking or bathing. Using the extractor fans, which should be provided, is the answer. I also warn about the results of drying clothes indoors and on radiators – this will cause a lot of condensation.

In addition to explaining these issues very clearly to tenants I provide written guidance as well, a winter letter if you like, that explains about the precautions that tenants need to take. For example, in this case study on call out charges for boiler repair, mydeposits explain the importance of tenants reporting any issues at the time they occur.

Most rental properties with central heating these days have a boiler of some kind, be that gas, oil or in some country areas liquefied petroleum gas (LPG).

These boilers need to be serviced and it’s a good idea to schedule your annual gas checks and gas boiler service to coincide with the start of winter so you know it’s safe and in good working order to last trouble-free throughout the winter – if it’s a really cold winter then your boiler is going to be working 24/7.

Condensation debate

Condensation, damp and mould occur when tenants don’t have enough heating on, letting the temperature fall so low that there are lots of cold surfaces where water will condense. Secondly, because it’s so cold, tenants will keep all the windows tightly shut and therefore any steam generated by cooking, washing and drying clothes is trapped inside, simply condensing on all the cold surfaces.

I’ve even seen tenants block up extractor fans. It’s a vicious cycle that gradually results in harmful black mould appearing everywhere. Total Landlord has produced a very useful tenant checklist for landlords to print off and give to their tenants, to help them recognise damp and including tips to keep the property free from condensation and mildew.

You can download it here. You can also read Total Landlord’s ultimate guide to identifying and preventing damp, mould and condensation for more information and listen to their podcast[1]  on this topic, which is packed with advice for landlords and agents, featuring guests from mydeposits and HF Assist.

Automatic extraction

There a few things you can do in addition to trying to educate your tenants. One is to fit automatic extractor fans in the kitchen and bathroom. These are normally closed to prevent cold drafts, and only operate when the humidity reaches a certain level, but they are highly effective.

The only drawback to the automatic extractors is they are removing warm air from the house which will only be replaced by colder air seeping in through gaps – it’s expensive to throw away warm air when you’ve paid to heat it up.

The next stage up is a full house ventilation system which recycles the warm air. Fitted in the attic space, an air pump circulates air around the house. These mechanical ventilation systems with heat recovery (MVHR) are a whole house ventilation system that both supplies and extracts air throughout a property. Heat recovery is used to reduce the heating and cooling demands of buildings.

They typically recover about 73–95% of the heat in exhausted air and will significantly improve the energy efficiency of a house.

Going to the expense of such a system would make most landlords pause and think, but if it can result in the prevention of a bad case of condensation and black mould and make the lives of your tenants better, then it may well be worth it.

These systems are best fitted when you are doing a full renovation or building a new house rather than a retrofit, but if you consider this is appropriate, it will help you meet the more stringent energy efficiency targets coming down the line – EPC level “C” is likely to be the next target set by the Government.

What can the tenants do?

Tenants should follow the advice given, maintain a low heat at all times especially when the weather is very cold, and if they go away, say at Christmas. They should vent steam at source and avoid wet clothes drying indoors. They need to familiarise themselves with the boiler and thermostat controls and inform the landlord immediately if things go wrong.

Replacing boilers

Boilers have a lifespan, so you should budget for their replacement after a reasonable time. The life expectancy of a boiler will depend on the type of boiler you have. On average, a standard gas combination or stand alone boiler will last for 10 to 15 years and if you’re lucky a good quality boiler might function normally for over 20 years, that’s providing it is well maintained and serviced annually. 

The advantage of replacing a central heating and hot water boiler is that technology moves on quickly. A 10 year old boiler may be well out of date and difficult to get spare parts for, plus you will probably find that its replacement is not only smaller, but much more energy efficient. A modern condensing boiler that is capable of collecting gas generated by burning fuels, like gas and oil, and used to heat water entering the system, saves a lot of money and reduces carbon emissions in the process.

Repairing boilers when they break down, if they are above a certain age, can be uneconomic. It’s also the case that spare parts become more difficult to source and there may be a long wait, which your tenants won’t thank you for.

Service contracts

If you want to reduce the hassle if a boiler does break down, you may have considered using a breakdown service such as those provided by British Gas or Homeserve, or you may know a local heating engineer who attends quickly. The main problem is, these things generally break down when everyone needs an engineer, so unless you have some influence with local engineers, a breakdown service is worth considering.

Replacing the boiler

Replacing a stand alone boiler – which usually takes up a lot of space – with a modern combination boiler, which is much smaller, gives you great flexibility as to where you place the boiler. It means that water tanks, say in a cupboard or in the attic space, along with pipework, are no longer needed, and this may release even more space.

General property maintenance and repairs, such as replacing an ageing boiler, are genuine items that HMRC says you can claim for against your income for tax purposes, but you cannot claim for improvements. Though your new boiler may well be a technical improvement over the old one that breaks down, it is still a replacement and an allowable expense.

Working on or replacing boilers and heating systems should cause little disruption, so no need to start moving tenants out. In the meantime, if you need a source of heat when a boiler breaks down you should have a standby portable heater or heaters, but make absolutely sure these are serviced and safe to use in short-term emergencies. In any event you should be looking to have a broken down heating boiler up and running within two or three days at the outside and preferably sooner, to be fair to your tenants.

Insulation

You can have the latest energy efficient boiler available, but if most of the heat is being lost through an uninsulated home, then not only is it going to cost a fortune to keep the place warm, but your tenants are more likely to skimp on heating because of cost, causing condensation, black mould, health risks and long-term damage to your property.

As a responsible landlord you need to get your priorities right in these times of sky high energy prices. Properly insulating your rental homes makes economic sense, so don’t wait until you are forced to do it. It’s likely that all newly rented properties will require an EPC of at least Band “C” when the Minimum Energy Performance of Buildings (No. 2) Bill becomes law.

Alternative forms of heating

Electric heating, either with electric boilers or individual heaters, was always considered to be more expensive than oil and gas, but times have changed and some modern systems can actually work out cheaper, depending on your own situation and taking the average cost over the seasons.

Modern electric heaters are highly controllable, some come with an App control on a smartphone, and they are designed to be energy efficient, meaning you can actually save more energy and cut down heating costs, especially if you can combine this form of heating with solar panels.

Gas or oil heating requires an annual service and gas needs an annual check by a Gas Safe engineer, which can be a hassle when trying to tie down tenants to appointment times, and there’s the annual cost. With electric heating you’ll never have to do this. There’s no flue pipework or the risk of carbon monoxide leaks, giving you some peace of mind.

It’s much easier to control how your home is heated with modern electric heaters and the cost of electricity has come down over the years. Separate zone heating solutions fitted with digital thermostats mean that you can control these heaters on a room-by-room basis. It’s something worth considering, so do your own research.

Heat pumps

Last year the Government introduced a scheme to encourage people to install more environmentally-friendly heating systems, with grants made available to existing homes and non-domestic buildings in England and Wales.

There are two types of heat pump, the simplest one being air-source which is slightly less effective. Ground-source is more effective but much more expensive to install.

Heat pumps only suit houses that are very well insulated, and they must have room for a large water tank, plus increased (double) radiator sizes. Underfloor heating is best. The scheme is not available for social housing or a new-build property, but private rented accommodation is eligible.

To be eligible for the scheme the property must have an EPC issued in the last 10 years, and the certificate must have no outstanding recommendations, such as installing loft or cavity wall insulation. Otherwise, you can insulate before you apply. Your private rented accommodation is eligible but the decision to install has to be taken by you, the landlord.

Under the scheme, the Government is providing £5,000 for households to install air source heat pumps which should cover 50 to 75% of the cost. £6,000 can be extended for a ground-source heat pump or even a water-source heat pump which is likely to cover between 30 to 50% of the cost of the installation. There is to be no VAT on heat pumps for five years in England, Scotland and Wales.

Proving inadequate

My view is that you need to be cautious about fitting heat pumps in rental properties. There have been many instances of installations providing inadequate heat and they need careful control. The house must be suited to the installation by being ultra well-insulated and having space for the necessary equipment.

The other important consideration is that heat pumps don’t necessarily save on heating bills. They simply transfer the cost from gas or oil onto the electricity bill because they consume a considerable amount of electricity.

See this video from ‘Skill Builder – Worcester Bosch’ which gives in my opinion an accurate expert view of some of the latest developments in heating systems, namely hydrogen boilers and heat pumps. It also gives some idea of the many problems you can encounter when you retro-fit a heat pump installation where a standard gas or oil system was used before.

Hydrogen burning boilers

Another form of heating which holds out some promise for the future is boilers using hydrogen gas. Currently, hydrogen has several drawbacks, not least that it costs as much if not more in energy to produce it as it gives back. But by using off-peak or surplus green energy, such as wind and solar, hydrogen acts like a battery, a form of energy storage. Green hydrogen is produced in this way and is transportable energy.

Blended hydrogen gas boiler trials for domestic properties, using the existing gas infrastructure, as mentioned in the video, are ongoing and could become viable in the near future.

Total Landlord’s ultimate guide to having an eco-friendly property contains lots of useful advice on what you need to do to make sure your property complies with the law, both now and in the near future, and that it’s as eco friendly as possible.

And for more information on how to provide your tenants with a safe, comfortable home, which includes a decent heating system, this winter, read Total Landlord’s ultimate guide to preparing your tenants’ boiler and heating system for winter.

Mass appropriation of rental properties for asylum seekers?

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So, what do landlords think of this latest initiative?

https://www.serco.com/uk/sites/serco-aasc/landlords

On the one-hand, the government are berating landlords for the rent levels which are linked to shortages in supply (read – failure by Govt to build)

View Full Article: Mass appropriation of rental properties for asylum seekers?