Is the Boiler Upgrade Scheme Worth it For Rental Properties?
Estate agent body Propertymark says that letting agents are disappointed with the government’s Boiler Upgrade Scheme. It claims that the process of applying for grants to install green energy supplies is too complicated and that the level of funding is not generous enough.
However, the scheme is one of the government’s flagship green policies and also offers the possibility of reducing energy bills for tenants at a time when the price of gas will lead to some people having to choose between heating and eating this winter.
So, what is the Boiler Upgrade Scheme and why are many letting agents and landlords disappointed by it? This article explains more.
The Boiler Upgrade Scheme Details
The idea of the Boiler Upgrade Scheme is that it helps decarbonise the way we heat our homes and that includes properties that landlords rent out. This involves providing grants to property owners through installers for a range of green heating solutions.
The government has put forward £450 million in grants to distribute between this year and 2025. Available grants are for:
£5000 taken off the cost and installation of an air source heat pump
£5000 taken off the cost and installation of a biomass boiler
£6000 taken off the cost and installation of a ground source heat pump or water source heat pump
Ofgem claims that the scheme is designed to “minimise the amount of work property owners need to do” by putting the onus on installers to make the application. However, many letting agents and landlords suggest that it hasn’t worked out this way.
Why Are Landlords and Letting Agents Unhappy?
Propertymark found that there were a number of issues preventing landlords from applying for the grant. The research showed that:
25% of Propertymark letting agent members said that landlords had found the application process was too lengthy and complicated. This is particularly because they thought that the grant they would receive was not large enough to be worth the effort.
29% said the current grant didn’t cover enough of the cost of installing devices, but they would apply if it was more generous.
73% claimed landlords did not apply because the amount of funding available did not cover a significant enough proportion of the cost of retrofitting a rented property.
Ideas to Improve the Boiler Upgrade Scheme
Propertymark has developed some suggestions for improving the Boiler Upgrade Scheme. These include:
Providing a more generous grant
Funding a wider range of green heating solutions
Better national marketing for the scheme
Grants offered at a level determined by the energy efficiency of the individual property
Sustainability in the Home
Air source heat pumps are a sustainable heating option for landlords. They can reduce an annual property energy bill by up to 60%. However, there are other options for making a home more sustainable for landlords not willing to apply for the scheme.
Increasing the amount of insulation in loft spaces is an effective cost cutting measure. As it cavity wall insulation and ensuring that there are no gaps in door and window frames. Even replacing an old, inefficient gas boiler with a brand new, efficient model reduces the amount of fuel that the household uses.
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