Families up and down the country are having to cope with an economic crisis that has hit the entire world with the same suddenness and voracity of a recent viral pandemic. It has impacted on every household and every business. Landlords and their tenants have not been left untouched.
The average household monthly grocery bill in 2021 came to £400 for a family of 4. By the end of 2022, based on an inflation rate of 10.1%, this had risen to about £440 a month. In December 2022 the rate of inflation was recorded at 10.5% and prices are still rising across the board.
The biggest headaches for tenants though, must come from trying to budget for the skyrocketing costs of gas and electricity. It has been reported than some householders are even having to sacrifice heating their homes altogether so that they can put food on the table.
It is at times like these that some tenants may find it impossible to keep up with their rent payments and may quickly accrue many months of rent arrears, with little or no hope of paying them off. This is therefore a very worrying time for tenants and landlords alike. What practical steps can they take to reduce this burden?
Make sure you are getting all the Government help available
From April 2022, the U.K. Government provided all eligible households with a £150 winter heating cashback, followed in October with a further £400 discount under the Energy Bills Support Scheme. In addition, the Warm Home Discount scheme, offering financial help with the cost of energy during the winter has been expanded. Its purpose is to make things easier for those households struggling on low incomes and pensions. It has been raised from £140 to £150.
How to reduce energy bills.
Turning a combi boiler flow temperature down to 60°C could save up to £100 a year. More savings can be made by turning down the temperature setting on radiators in rooms that are not being used, switching off all appliances and removing the plugs from the sockets, and by closing curtains and blinds at night. Modern washing machines and detergents can clean clothes just as effectively at lower temperatures, so reducing the wash temperature from 40°C to 30°C means being able to process three loads of washing for the same energy as two at the higher temperature.
There are a number of more involved measures such as installing loft insulation, renewing double glazing and old boilers, or even making the jump to solar panels and heat pumps with under floor heating.
However, landlords may not wish to undertake any work that does not provide an obvious benefit to them. Bear in mind, as it is already a legal requirement for privately let properties to have an energy rating of E or above, and that the Government has set a target for homes to achieve a rating of C by 2035, it might well advantageous to upgrade the property earlier rather than later.
It would also be a good idea to investigate what grants and discounts are available at the moment to help with energy efficiency improvements. It must be remembered that tenants are entitled to request such improvements be made to the property, a request which landlords cannot arbitrarily refuse.
Protect your property
With so many people opting to cut down on the heating bills, by turning down thermostats and even turning off their heating altogether, it is essential to plan for potential damage caused by frozen pipes and condensation.
Richard Lunn, Underwriting Manager for specialist landlord insurance provider Just Landlords, comments: “With the cost of living crisis impacting many throughout the UK, we’re reminding homeowners about the importance of checking your property has suitable cover.
“Unfortunately, the rising costs of building materials and labour mean that the rebuild value of your home may change. Our landlord insurance customers benefit from monthly checks to ensure the amount their properties are insured for can still cover the cost of rebuilding, should the worst happen. We encourage all homeowners to check that their policies also provide suitable cover.”
