As there are so many regulations and rule changes, a lot of landlords feel overwhelmed with the process, and the fact that new energy upgrade regulations are coming soon will not please many landlords.
There is no denying that these regulations are updated in good faith and with an intent to improve the rental sector. More needs to be done to assist tenants, and if rogue landlords are removed from the industry, everyone will benefit. However, in the short-term, many landlords have found their role has become more difficult.
Landlords need to provide a better standard of accommodation
Landlords are required to provide their tenants with warmer housing. Landlords are also expected to offer more affordable accommodation for tenants, which is news that will please tenants. Landlords will hopefully see the benefits of upgrading their rental housing. However, as upgrades usually equate to an increase in costs, it is easy to see why many landlords don’t welcome change.
Many landlords are still dealing with MEES, or the Minimum Energy Efficiency Standards, which were introduced in April of 2018. However, there are new proposals to MEES that will impact on landlords. Letting professionals could face spending up to £3,500 of their own money to improve the energy efficiency rating of their rental accommodation.
Landlords may have to pay to make improvements
This change has occurred because the Government is keen to ensure landlords are obliged to carry out energy efficiency improvements. Initially, landlords didn’t have to carry out energy efficiency improvements if it left them out of pocket. This situation is no longer the case.
On the 5th of November 2019, an announcement was made that said the cap of landlord expenditure for home improvements would be £3,500. This sum would be inclusive of VAT. While many landlord groups stated their opposition to this cap, the Government responded by saying many people recommended a cap of £5,000.
There is no denying that home improvements can benefit a landlord through:
· The rental home increasing in value
· Higher rental fees being charged for the property
· A better class of tenants being attracted to the rental property
· Lower energy bills
So far, there has been no announcement for when this change will come into effect. The 1st of April 2019 was the proposed date, but this will not happen. There will be a formal announcement of the date, but savvy landlords will review their property soon and determine if changes are required.
Landlords have a lot to consider, and added fees and bills will never be welcomed. While these changes will bring benefits if the long-term, it is understandable, many landlords are not happy in the short-term.
If you are a landlord looking for help in caring for your property or keeping up to date with regulations, we can help. At Holmes Estate Agents, we are here to assist you, so please get in touch.