Energy price cap hike to hit least efficient homes hardest

Energy price cap hike to hit least efficient homes hardest

0:07 AM, 29th August 2024, About 4 months ago 6

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The energy price cap is set to rise by 10% from 1st October, leading to significant increases in energy bills for UK households, Rightmove says.

The property website warns that the least energy-efficient homes rated as G will be hit the hardest, with bills potentially rising by as much as £558 per year.

For homes with the highest energy efficiency rating (A), average annual bills could increase by £56.

Rightmove’s survey of more than 14,000 people found that nearly three-quarters (72%) would be willing to adjust their daily routines to save money on energy bills.

That follows a suggestion by the regulator that it will consider potential changes to the price cap, including a more dynamic system that varies prices based on the time of day.

Renters to closely consider their total monthly outgoings

Tim Bannister, Rightmove’s property expert, said: “The rising price of energy in recent years means that renters and homeowners are likely having to closely consider their total monthly outgoings when choosing their next home.

“We know that lower bills are one of the biggest motivators for people to go greener, so we expect over time people will increasingly seek out more energy efficient properties in order to keep bills down over the long-term.

“Our research suggests that if something like a dynamic price cap, where energy is cheaper at less popular times of day, was to be introduced, the majority would welcome it if it meant lower bills.”

Help landlords with EPC incentives

Propertymark’s chief executive, Nathan Emerson, said: “Homes in the UK are amongst the least energy efficient in Europe and this is unlikely to change without the UK government providing landlords and homeowners with incentives and access to sustained funding.

“Not only will efficiency targets for the private rented sector be unachievable, ultimately impacting tenants, but in order to limit homeowners’ energy bills and fundamentally reduce emissions across the property sector, future rules and requirements must be realistic and attainable with appropriate infrastructure in place.”


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Cider Drinker

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8:11 AM, 29th August 2024, About 4 months ago

The least efficient homes will be impacted more by the energy price hike. Who’d have thought?

If a property owner spends £10k getting from EPC Rating G to C (it could cost much more) they could save around £500 per year in energy costs (according to the article). The same owner could invest their £10k at 5% and they’d earn £500 per year to help them pay their energy bills. They’d also still have £10k.

If a private landlord spends £10k on a property, the rent will rise to cover the cost of the investment.

The need to even out demand for energy at peak times is because we don’t have the generating capacity to supply the country. I don’t suppose building 1.5 million new homes to (directly or indirectly) house economic migrants helps either.

The U.K. has considerably more older properties than most other countries in Europe. Many terraced houses were built before 1919 to house workers. Built cheaply, these homes should be demolished and replaced with more modern homes

dismayed landlord

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10:38 AM, 29th August 2024, About 4 months ago

Reply to the comment left by Cider Drinker at 29/08/2024 - 08:11
Wow. I would never have come to that conclusion on my own.

DAMIEN RAFFERTY

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12:06 PM, 29th August 2024, About 4 months ago

Cinder drinker
My lovely victorian terraced house has EPC band C which is the best I can achieve.
With modern fire safe double glazing, energy efficient gas combi boiler and lots of cavity wall and loft Insulation I am doing the best I can for my tenants.
Low watt LED lighting and good floor insulation help keep my tenants bills low.
Having another property either side also helps ! Happy tenants who have been in for 2 years and signed a new contract.
Retro fitting energy measures in older properties is much more environmentally friendly than knocking down and building Tiny boxes

Cider Drinker

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12:55 PM, 29th August 2024, About 4 months ago

Reply to the comment left by DAMIEN RAFFERTY at 29/08/2024 - 12:06
There will be exceptions to every rule.

Many terraced houses in my area are poorly built, have small rooms and no outside space. Bathrooms are often downstairs.

Owner-occupiers don’t want to live them so they’re turned over to the PRS landlord - many of whom don’t care that they are housing drug addicts and other dregs of society. The streets be one ghettoes.

Cider Drinker

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13:04 PM, 29th August 2024, About 4 months ago

Reply to the comment left by DAMIEN RAFFERTY at 29/08/2024 - 12:06I only have two properties that are not rated C.
One is a semi-detached 1930 property that will be a C before I sell it (currently undergoing expensive refurbishment after a bad tenant trashed it).
The other can only meet a C rating by installing solar PV. Why should I when much of our energy is forecast to be ‘green’? I paid £75 k for it 7 years ago and let it at £400 per month. One of the cheapest 3 bed properties in the U.K. perhaps? If I am forced to fit Solar PV, the rent will rise to LHA levels (£550 per month).

Reluctant Landlord

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13:25 PM, 29th August 2024, About 4 months ago

it makes not a shred of difference if the tenant refuses to put the heating on regardless because its a bill they don't want to/can't pay.

Some of my benefit tenants still complain when there is no use and they still get billed for the s/c.

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