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TODAY'S OTHER NEWS

How will the gas boiler ban affect BTL landlords?

On 13th March the Chancellor announced that it will be illegal to install gas boilers in new build homes from 2025. The decision was taken after advice from the government’s independent advisory organisation, the Committee on Climate Change (CCC).

The committee found that the UK would not meet its climate change target of reducing greenhouse gas emissions by 80% by 2050 (compared to 1990 levels) unless a big change was made in the way we heat our homes. Approximately 14% of the country’s greenhouse emissions come from our homes, phasing out oil and gas boilers and replacing them with renewable heating systems is essential if we want to stop harming our planet.

What does this mean for landlords?

The announcement only applies to newly built homes; landlords of existing properties aren’t legally obliged to swap a gas or oil boiler for a renewable heating system. However, landlords who plan to build new rental properties after 2025 will need to find an alternative heating system which uses renewable energy.

Generally speaking, this will mean higher upfront installation costs than would be involved in traditional boiler installation, but in the long-term these renewable systems could actually benefit both landlords and tenants, as well as our environment.

Benefits of installing a renewable heating system

Renewable heating systems require very little maintenance and are less prone to breakdowns than boilers, reducing both the hassle and cost of arranging engineer call outs.

Annual servicing is still required in many cases to maintain the manufacturer’s warranty, but landlords won’t need to organise and pay for annual gas safety checks anymore.

Renewable heating systems run (for the most part) on free energy, so tenants can enjoy cheaper heating bills which may be a positive factor when trying to attract tenants.

Things to consider

Renewable heating systems currently cost significantly more to install than a standard boiler (see below for more details).

In order to heat a home effectively and as efficiently as possible, the new build needs to be completed with high levels of insulation. This is because water hot produced renewable systems is not as hot as water from a boiler.  However, with the right insulation, larger radiators or underfloor heating, heat pumps are perfectly providing enough hot water for even large homes.

Here are some of the renewable alternatives available on the market today including potential installation costs.

Types of Renewable Heating Systems

Air source heat pumps are installed outside the home where they can extract natural heat from the air to produce hot air (air-to-air heat pump) for space heating or hot water (air-to-water heat pump) for wet central heating systems.

Ground source heat pumps take natural heat from the ground around your home (via tubes which are buried underground) and transfer the heat to a hot water cylinder in your home. 

On average, it costs £9,000 – £13,000 for the supply and installation of an air source heat pump and £10,000 to £18,000 for a ground source heat pump.

Solar thermal panels are installed on a roof where they absorb heat from the sun and use it to heat water in your home. A solar thermal panel system usually costs between £3,000 – £5,000 to install.

Electric boilers are a potential replacement for gas boilers as they don’t produce carbon emissions when working. However, if the electricity they use to work is generated by burning fossil fuels (rather than via renewable energy), electric boilers will still be contributing to our greenhouse gases. To make electric boilers a more environmentally friendly solution you can  install solar PV panels alongside it and power it with free solar electricity.

Electric boilers are usually cheaper to install than gas or oil boilers with average costs of between £1,000 - £2,500, but tenants will be facing high running costs if using electricity bought from a supplier.

David Holmes is the founder of the Boiler Guide. www.boilerguide.co.uk

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    Was considering air to water at home as a trial.

  • Paul Barrett

    £18 grand for heating.
    They having a laugh!?
    How will new property builders convince punters to cough up the extra!?
    Compared to an existing property prices would have to be reduced substantially to convince anyone to buy one of these new fangled systems.
    I reckon there will be far more demabd for existing properties with traditional gas CH possible.
    Even developers might look at redeveloping existing properties which WON'T need to comply with these bonkers new regulations.
    The climate changes as it has done for aeons.
    Man has not affected the climate despite the propaganda to the contrary.
    Few will want to buy these potentially massively expensive new homes.
    Pre-owned ones will be much sought after.
    I CAN'T see how these new regs will encourage mass house building.
    The costs to the buyer would simply be too high.
    The only way it might work is to do what my architect neighbour did.
    He demolished one house and built 2 houses out of polystyrene blocks filled with concrete and then rendered over
    Heat pumps etc and very nice the result was.
    Took ages to do though.
    But all the electrics involved must surely cost more to maintain that a gas CH system!?
    I remain unconvinced as to the merits of these heat pump systems which to me seem a costly situation.

    A cylinder would take up far more space than a gas boiler.
    If I was intending to remain a LL I would get my buying done before these stupid regulations are introduced.

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    I usually agree with your posts but cannot accept any denial of our responsibility for climate change. I don't however support the drives to renewables and demonising gas and diesel consumers. Nuclear power is the best way forward for sustainable controllable power generation and can't understand the greens' opposition to this zero emission power source.

     
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    Hi Paul.
    I expect that the cost will be included in the final asking price and there will be no choice if you want to purchase the property, then you will have to 'cough up' the money.
    Considering that new homes have various purchase schemes and when new they sell like 'hot cakes', I don't think that it will make a lot of difference.
    The main worry is if they try to retrospectively enforce these changes on older properties.

     
  • Paul Barrett

    Nah man made climate change is a myth.
    Climate change is just something that happens irrespective of man.
    Always has done and always will.
    The evidence is there that man does not change the climate.

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    gshp and ashp are a giant con--av0id--you will never get 4-1--on some days not even 1:1

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    the chancellor is bonkers

    no gas boilers but electricity produced by gas fired power stations?

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    And that applies to cars as well.

     
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    The current chancellor has just confirmed that he is a fool and does not have a clue what he is talking about, a bit like the ordvious one. In fact just like the previous one.

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    No Steve not a fool, he most likely has shares or is a director of a company which supplies alternative heat sources

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