With rising prices of energy and essentials set to see the majority of the UK tightening their belts, and the Office of Budgetary Responsibility (OBR) predicting the largest fall in living standards for more than seventy years, landlords face increased EPC requirements with little help coming from the spring budget.
With the country seemingly at the centre of several converging financial crises, there was a lot of expectation for Sunak’s spring statement to provide help for the nation to get through the latest in an ever-lengthening line of turbulent moments in global finance. As energy bills climb, and potential grain shortages caused by the war in Ukraine look likely to increase prices and exacerbate shortages caused by Brexit, the country really could have used a budget that alleviated some of the pressure. Sadly, it didn’t get it.
Cuts to VAT on green products, for example, will help a little; but, as landlords across the UK look to improve the energy efficiency of millions of properties to reach increased EPC requirements, there are still likely to be financial constraints on the ability of landlords to make those improvements – and further issues caused by availability.
The Director of Energy Efficiency Consultants Murton & Co, Jonathan Murton, for example, has stated that the rise in energy prices had already increased demand for products and added:
In addition, many landlords that have already seen tenants accruing rent arrears (partially as a result of the pandemic and central government’s inaction when asked to provide grants to help with resulting financial problems – like many countries have done), are also facing a year and possibly multiple years where their tenants will face spiralling financial difficulties.
In this regard, the Chief Executive of the National Residential Landlords Association, Ben Beadle, stated:
In what should be an eye-opening moment for the Chancellor, Generation Rent and the NRLA appear to be on the same side of this issue, as Baroness Alicia Kennedy, Director of Generation Rent, commented:
Responding to this week’s Spring Statement, Baroness Alicia Kennedy – director of Generation Rent – says:
What this means for Wirral landlords
Unfortunately, there seems to be a growing demand for private landlords to solve the problems of central government. While they are asking for homes for Ukrainian families, which many landlords would love to offer, they are continuing to neglect the social housing sector, or the legislation impacting landlords making such a choice, meaning that landlords face the problem of choosing between struggling families from the UK and Ukraine while both are being failed by the state.
As things stand, there are positives for landlords, but there is a growing raft of issues that could cause problems – which landlords will need to address with their MPs before they become intractable.
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