Tag Archives: energy
Property markets in US West could be cooling, new analysis suggests
Summer activity has boosted quarterly regional residential real estate growth in the Midwest and South of the United States while a drop in quarterly performance in the West has fuelled speculation of a cooling market. According to the latest analysis report nationally, quarterly growth continues to be steady, increasing slightly by 0.1% month on last […] The post Property markets in US West could be cooling, new analysis suggests appeared first on PropertyWire . Continue reading
Third of UK tenants fund energy improvements instead of landlords
A new report reveals that a third of tenants in the UK have paid for energy efficiency improvements despite recent Government legislation that requires landlords to do so. Currently landlords are required to bring their property up to the minimum Energy Performance Certificate (EPC) rating E. Under the legislation, which came into force on 01 April 2016, if a tenant requests a more efficient home and the landlord fails to comply, the landlord could ultimately be forced to pay a penalty notice. However, the study conducted by online letting agent PropertyLetByUs, shows that one in six tenants have paid for roof insulation, 7% have paid for double glazing and 92% have paid for draft excluders for windows and doors. A further 71% have paid for their boiler to be repaired. The research also shows that 88% of tenants want their landlord to install a more fuel efficient boiler, while 78% want their draughty front door replaced, 72% want more loft insurance and 48% want double glazed windows fitted. Properties with EPC ratings of F and G will be progressively banned from the market, starting with rental homes with new tenancies. That will become the legal minimum for private rented properties when new regulations come into force in England and Wales from 2018. The Residential Landlords Association estimates that a total of 330,000 rental homes in England and Wales are likely to be affected. Though Government officials have estimated it could cost landlords between £1,800 and £5,000 to bring energy-inefficient properties up to an E rating, according to PropertyLetByUs it could be tenants that have to fund the improvements. ‘Our research shows that is falling on tenants to pay for energy improvements to their rented properties which is simply unacceptable. Many tenants are finding that their landlords are refusing to make improvements to the property, leaving tenants no choice but to dip into their own pockets,’ said a spokesman. ‘Tenants should not have to pay for roof insulation and repairs to old boilers, when it is the landlord’s responsibility. Landlords should comply with the current legislation that requires them to make energy efficiency improvements and they also should start improving their properties, if they have an EPC rating of F or G, so they are brought up to the required standard by 2018,’ the spokesman added. The Government has recently given guidelines on the costs with a typical package of measures for a small semidetached house. Gas central heating and low energy lighting is estimated at £4,000, loft insulation at £300 and cavity wall insulation at about £500. The firm also pointed out that the Government will need to put measures in place to ensure that landlords are compliant or it fears that the financial burden on tenants could be even greater. Continue reading
Landlords in UK should plan ahead for new energy regulations
New Government plans in the UK will require buy to let landlords to spend up to £5,000 to make their rental properties more energy efficient. The new legislation, which kicks in 2018 will require landlords to raise the energy efficiency of their homes to at least Band E for new tenancies by carrying out improvements such as insulation, cavity wall filling and new boilers. It has been suggested by the Residential Landlord’s Association that a total of 330,000 buy to let homes, typically Victorian and Edwardian properties, will be affected and the RLA has warned the new so called ‘green tax’ could push rents even higher. The Government has proposed a £5,000 cap, claiming that most landlords will pay no more than £1,800 but according to Peter Armistead of Armistead Property, the Government should be providing alternative support, now the Green Deal has ended, to help fund energy efficiency improvements. ‘Landlords have been bombarded with new tax measures over the last 12 months and this is yet another cost that some landlords will have to face. Landlords can’t be expected to absorb all these new taxation measures and just stand back and watch their profits being eroded. Unfortunately, it will be tenants that will have to bear the brunt of these costs through higher rents,’ he said. ‘While it is a good move to improve the quality of rented accommodation, there should be another scheme to help landlords make the improvements. The Green Deal gave loans to improve energy efficiency and these loans were then repaid by tenants, who as a result of the works were paying lower bills,’ he explained. To help spread the improvement costs, landlords should start upgrading their properties, before it becomes mandatory in 2018 for new tenants. Buy to let mortgage providers will require borrowers to comply with the regulations and valuers are likely to amend their criteria in the run up to 2018, making buy to let mortgage applications more difficult. ‘Most insurance policies require landlords to comply with all relevant statutory requirements. This may mean that it could be more difficult to get insurance unless landlords comply with the forthcoming regulations. Landlords with F and G rated properties need to manage the upgrading and improving their properties to avoid potential prosecution and fines,’ added Armistead. Continue reading
