Jungle Property Blog

I recently blogged about whether landlords need to consider improving the heating systems in their properties (article here)

The British Property Federation (BPF) has criticised government proposals to introduce tougher energy laws for the private rented sector.

The organisation’s comments follow a statement by Energy and Climate Secretary Chris Huhne who recently announced changes at the second reading of the Energy Bill.

He said: “The Government has made it clear that renting out dangerously cold and draughty homes is unacceptable. Landlords will have to improve their properties or face prosecution.”

But the BPF warns there could be ‘significant consequences’ if capacity in the energy efficiency sector is not increased to meet demand.

Proposals in the Bill include:

• From April 2016 landlords will not be able to refuse reasonable requests from tenants, or local authorities acting on behalf of tenants, to improve their propert

• From April 2018 the government will make it unlawful to rent out a house or business premise which has less than an ‘E’ energy efficiency rating, ensuring at least 682,000 properties will have to be improved.

Ian Fletcher, director of policy at the British Property Federation, said: “We welcome the recognition that there simply isn’t the capacity in the energy efficiency supply sector to expect change overnight and hence why the Minister has plumped for 2018.

“This seems reasonable for the private rented sector, but if the capacity does not come on stream or the Green Deal fails there will be significant consequences in terms of reducing housing supply and potentially poor works if there is a last minute rush.

“Previous drafts of the Energy Bill were proposing a more cautious approach which relied on a review in 2013/14 to check progress, and the implications if there was a lack of capacity, before considering how any legislative sticks would be applied. If that is dispensed with, the Secretary of State is obviously pursuing a riskier strategy.

“Some will also query why the Department is placing so much stall on the PRS, when there are far more carbon emissions emanating from the owner-occupied sector?
“Regardless, it is important that landlords start to consider whether they will be caught and have their plans ready for when the Green Deal goes live next year.

The Government has binding climate change commitments and landlords are party to those.

“There are opportunities, however, as well as threats in improving energy efficiency and landlords who start thinking about and acting on the issues will be best placed to handle both.”

Article reproduced from Residential Landlord

On the odd occasion I encounter a rental property with no central heating where the heating in the property is dependent on convector heaters. Invariably the topic of the heating system comes up in conversation with questions like Should I install central heating? What level of rent could I expect if I installed central heating? What would the payback period be? I can never be precise in answering these difficult questions but we may be getting closer to a time that landlords will need to consider installing central heating.

The Energy Bill has just had it’s 2nd reading in the House of Commons. As the bill progresses towards Royal Assent it may be useful for landlords to be mindful of what impact this may have on them. Under the proposed bill we are likely to see regulations that allow tenants to make requests to improve the energy efficiency of a rented property. What if they were to request a more efficient heating system?

In a recent case of Bristol City Council v Aldfrod Two LLP [2011] UKUT 130 (LC) it is clear most EHOs have a strong dislike of convector heating systems and a powerful preference for gas central heating which they see as more energy efficient, environmentally friendly, effective and controllable. This is particularly relevant where the tenant is a benefit claimant with visits from Housing Officers now commonplace and therefore the issue of inefficient heating systems is more likely to come to light.

Whilst none of this is law and we are unlikely to see a ‘central heating law’ The days of leaving your tenants to gather around a candle for warmth may be numbered.

1. Tenancy deposits protection. Most landlords take a tenancy deposit, also
   known as a damage deposit or bond. Since April 2007 landlords have had to protect this deposit in one of the three government authorised tenancy deposit schemes, and serve a notice giving prescribed information on the tenant. The regulations also say that if you have not done this, then any section 21 notice will be invalid. So make sure you have protected your deposit properly and given your tenants the required information before serving your section 21 notice.
2. HMO licensing. Most properties where there are three or more
   unrelated tenants will be classed as an HMO. Some HMOs (but not all) now
   need to have a license from the Local Authority. The regulations set out basic
   requirements for certain types of HMO to be licensed but Local Authorities can
   also require other properties in their area to have a license too. So the best thing
   to do, if you are not sure, is to speak to a Housing Officer at your Local Authority. If you need to be licensed and you are not then any section 21 notice will be invalid.