UK households are set to face eye-watering energy price increases this year and there has been plenty media attention covering the topic. There’s much speculation that energy prices could rise by 54% from 1st April 2022 with more increases in store later this year!
There are a number of factors at play which are ramping up prices. These are:
- Supply and demand on the global wholesale market has pushed up prices gas & electricity providers have to pay. In turn, these prices are then passed onto consumers.
- Europe experienced a cold winter putting pressure on supplies resulting in lower stored gas levels. Conversely, hot weather in Asia has resulted in the consumption of more energy for air-conditioning; and most recently
- The uncertainty and turmoil caused by the conflict in Ukraine has also had an impact on prices.
What does this mean for UK landlords?
For those landlords who rent their properties as a single let E.G. rented to a family, there is no impact because these tenants are usually responsible for managing their own energy costs.
For House in Multiple Occupancy (HMO) landlords who rent individual rooms, the cost of utilities (IE. Gas, electricity, water, internet & Council Tax) is included within the rent therefore, the onus rests on the landlord to manage and pay these running costs.
Pundits say that it is highly likely that prices are likely to increase later in the year and possibly into 2023 therefore, landlords need to prepare themselves now.
What impact could there be on tenants?
For tenants who typically rent a room in a HMO property, there is a likely chance that their rent could be increased to offset these significant price rises as landlords will be left with no option but to pass these costs on to their tenants.
What you can do to manage energy price increases
- Check your energy tariff to see that the amount you are paying is competitively priced. There are energy comparison websites you can visit that offer free and helpful advice. There are reported to be over 30 energy tariffs on the market to compare prices. Unfortunately, there is limited choice for gas customers but it is still worth checking if only to be satisfied that your tariff is competitively priced.
- Check the settings on boilers and thermostats. Some boilers may already have the hot water and central heating settings too high. 50 degrees Celsius is an ideal setting for hot water. It prevents scalding and can keep diseases at bay. Settings higher than 50 degrees can result in unnecessary and expensive energy bills.
- Switching off lights in rooms that are not occupied can save money. Consider installing motion sensors which switch off lights in rooms where no movement has been detected for a while.
- Provide energy efficient appliances. Modern white goods have display their energy efficiency. Only appliances that offer good energy efficiency should be used.
- Time to update the boiler? Research energy-efficient boilers as the money they are likely to save will offset the cost of their purchase.
- Consider using smart energy technology which allows you to moderate times of the day where hot water is heated / radiators are switched on. These devices can be used remotely and offer the user real time energy consumption at the property which can be adjusted at the press of a button.
- Monitor energy consumption inside your property with the use of a SMART meter. Energy providers usually offer SMART meters without charge and these are an effective way for tenants and landlords to monitor energy consumption and their carbon footprint.
- Talk to tenants and explain to them the importance of considered energy consumption as the rewards are great for the planet and their budget.
- For landlords who own student properties. Consider using bill-splitting companies who specialise in offering all-inclusive utilities packages at affordable prices making budgeting easy for students to manage. At Nicholas Humphreys (Sheffield), we introduce students to our trusted friends at UniHomes who provide an excellent package and service for students on competitive terms.
- Make sure your property is well insulated, Investing in insulation not only reduces the need for high energy consumption but also demonstrates your commitment to a greener environment and puts your property in good stead for improved Energy Performance Certificate criteria. Well insulated houses are attractive on the property market when the time comes to sell.
Are you a HMO landlord in Sheffield looking for help with managing your rental property? Whether you are looking for energy performance & saving advice, compliance, HMO licencing requirements or any aspect relating to rental management, call Nicholas Humphreys (Sheffield – Broomhill & Crookes) on 0114 470 4715 or e-mail at sheffieldwest@nicholashumphreys.com
Our office is open 7 days a week from 8am to 8pm.
