Landlords are going to play a key role in the Government’s quest to meet its net zero target by 2050 and the hard work starts now. There are a raft of milestone dates that buy-to-let owners need to know, so LandlordBuyer has brought them together in one place.
From money-saving initiatives that are already up-and-running to ambitious future EPC targets, here’s the lowdown:-
2022 Changes for UK Landlords
The Government’s new Boiler Upgrade Scheme opens for installer-generated applications from 23rd May 2022, and it’s due to run until 2025. This timeframe, however, is not indicative of the fund’s limited capacity. The £450 million pot will only stretch to 90,000 homes and it’s operating on a first come, first-served basis. Landlords looking to take advantage will need to act quickly as the fund may run out before 2025.
2025 Changes for UK Landlords
From 1st April 2025, properties where a new, renewing or extending tenancy is starting will need an EPC rating of least a C to be considered legal. This is a two-tier jump up from the current mandatory E rating. Landlords should consider only buying new buy-to-lets with high-rating EPCs or look to sell rental properties with poor eco efficiency.
2026 Changes for UK Landlords
The Government will ban the sale and installation of coal, oil and LPG-fired boilers from 2026. Landlords with off grid properties will need to make preparations to replace any incumbent fossil-fuel boilers that are coming to the end of their lifespan.
2027 Changes for UK Landlords
The Chancellor’s current zero rate of VAT on energy efficient products is only a temporary gesture. Landlords looking to install cut-price solar panels, heat pumps and insulation have until 2027 to do so, as this is when the five-year, VAT-free period ends.
2028 Changes for UK Landlords
A minimum EPC rating of at least a C will become mandatory for all rental properties from 1st April 2028. The Government says “the ‘all tenancies’ trigger date effectively introduces a backstop date, by which all remaining properties will have to be improved to the required EPC rating.”
2030 Changes for UK Landlords
Although not the residential housing sector, landlords should be aware that privately-rented, non-domestic minimum energy efficiency standards will change to a minimum EPC B by 2030. If successful, this may pave the way for an even higher mandatory rating in the PRS.
2035 Changes for UK Landlords
The Government has announced plans to ban all new gas boiler sales and installations from 2035. From this date, landlords who have properties with condemned or unfixable gas boilers will have to look at alternative ways to provide heat and hot water to their tenants. This could be a heat source pump or, hopefully, a hydrogen boiler.
LandlordBuyer is already consulting with investors who feel overwhelmed at the prospect of improving their buy-to-let’s eco efficiency in accordance with the timeline above. Whether you have one property to upgrade or an entire portfolio, selling now may be a more economical way of balancing the books.