Energy efficiency is becoming increasingly important in the UK with energy bills rising and with new regulations that are being put into place.
British households can now face a 58% increase in their energy bills due to the price cap being raised beginning in April 2022. This will have a significant impact on both homeowners and tenants that may already have difficulties paying their energy bills.
Investing in energy-efficient homes and practices is not only important in order to combat the raised price cap, there are also other benefits to considering energy efficiency such as ensuring that your business and properties are remaining compliant, and more.
Combating the rise in Energy Bills
Households will face a record energy bill increase of 54% from April after the regulator lifted the cap on default tariffs to £1,971.
The second major increase in energy bills in six months, and the largest on record, is expected to drive millions of households into fuel poverty for the first time.
The regulator Ofgem revealed that the increase to £1,971 a year for their annual energy supply is the result of a jump in global gas prices.
However, the Treasury has offered households a one-off £200 discount on their energy bills that will begin in October, which they would be required to pay back in instalments of £40 a year over the next five years – making it a little easier to manage the sharp increase in their bills.
Investing in energy efficiency in your properties would help to lower the bills for your business (if bills are included in tenancies) or for the tenants themselves if they pay bills separately. Energy-efficient properties will attract more tenants and help you to increase your businesses income and lower void periods.
Reinvesting your energy savings into your company
Energy-efficient properties will save your business money in the long term that can be reinvested into your business.
For example, expanding your property portfolio and being able to accommodate more tenants is one way that your business might reinvest. The expansion of a property portfolio will allow your business to grow and generate more revenue.
Your company might also choose to reinvest in software that can help your business to expand even further. Proptech investments can benefit your lettings agency by utilising a fully integrated system that will streamline your property management, reduce hours of your admin time, increase your financial accuracy and centralise your data.
Meeting EPC Requirements
Energy efficiency can also help your business stay compliant with EPC requirements as The government has made it a requirement for all properties to have an EPC rating of ‘C’ or above by 2025, beginning with the new properties first and the existing ones by 2028.
Although this doesn’t come into effect for the next three years, it would be beneficial to start making changes now. From 2025, there will be a £30,000 penalty for an invalid EPC (raised from £5,000). Property managers would benefit from increased energy efficiency in their properties to raise the EPC ratings.
Gain a competitive advantage
Prioritising energy efficiency means that your agency could gain a competitive advantage. This will set your letting agency apart from others as it serves as a unique selling point (USP).
Your focus and steps toward energy efficiency can also be used in marketing campaigns as it will capture the attention of clients that believe in the future of our planet and the importance of sustainability.
*Disclaimer: please note this blog is only intended as a guide, and is not to be taken as legal advice*