Government Gas Boiler Ban: How Should Landlords React?

By 2025, gas boilers and other fossil fuel powered heating and hot water systems will be replaced by renewable heating systems in all new-build homes. This is part of a government drive to achieve net-zero CO2 emissions by 2050. The ‘Future Homes Standard’ is also aimed at lowering fuel bills. But how will the move affect private landlords?

With 40 per cent of emissions coming from private households, it is no wonder the government is eager to make changes. And with renewable energy usage at a record high, now is as good a time as any. The future definitely appears to be looking greener, but should landlords be taking any steps now to ensure compliance when the time comes?

Existing properties unaffected

The good news for residential landlords in the shorter term, is that the gas boiler ban will not apply to existing properties. So there will be no need to replace gas boilers with greener alternatives. A good thing, since the Green Homes Grant that could have potentially funded a replacement was shelved not long after its launch.

For all new builds commissioned after 2025, however, heating and hot water will need to be powered by renewable sources. Whilst this is more of an issue for developers rather than landlords, it is likely to have a knock-on effect.

Because installing heating and hot water systems that are powered by renewable energy tends to be more expensive, developers are likely to pass these costs on to buy to let investors. But it’s important for landlords to take a step back and look at the bigger, longer term picture.

Renewable home energy systems are known to produce lower bills, which will of course prove attractive to tenants. So for landlords, properties powered by renewables could well prove more rentable, and attractive to eco-minded tenants, than those that still rely on traditional heating and hot water systems. So it may well be astute for landlords to consider making a move to a renewable alternative, even if there is no immediate legal requirement to do so.

What are the renewable alternatives to gas boilers?

There are various gas boiler alternatives that you can consider installing in your rental property.

Electric boilers

Electric boilers are nothing new, and are already a staple of many new building developments in closer knit communities in London where gas flues just aren’t viable.

The benefits of electric boilers make them quite an attractive proposition. Often cheaper to run than gas, they can be situated anywhere in a property due to not having to site the flue on an outside wall, and because they are noise-free.

Combined with solar panels, an electric boiler can be considered a renewable option. And of course with renewable electricity sources such as solar, wind and biomass being used increasingly to produce electricity, this option is certainly one to consider.

Solar power

Many homes now use solar power to heat their water, and they can also be used to power the central heating system too. With today’s modern panels having the capability to draw in energy from the sun even on the dullest days, again this is another genuinely viable alternative to gas and other fossil fuel heating and hot water systems.

Air source heat pumps

Whilst they can be costly to install, air source heat pumps can prove cost effective in terms of running costs. The pumps capture heat from the outside air, feeding it into the home to power the heating and hot water systems. During the summer, the pumps can work in reverse to extract warm air from inside and filter it out, so that the home is kept comfortably cool.

Ground source heat pumps

Fairly costly to install as air source heat pumps, but an energy efficient option that can drive fuel bills down. Ground source heat pumps extract heat from deep underground and filter it into a hot water cylinder within the home, which then passes into a heat exchange system. Hot water, central heating and underfloor heating can all be powered using this method.

Weighing up the costs, pros and cons of the gas boiler ban

Whilst renewable heating and hot water systems can be costly to install, and there is no immediate legal requirement to replace gas boilers in existing rented homes, landlords may wish to consider whether a change now could give their properties the competitive edge, with boosted rent-ability and the prospect of attracting longer term tenants thanks to greener credentials and lower utility bills. Tenants may, after all, be prepared to pay higher rental premiums in exchange for increased reassurance.

It may even be possible, in some circumstances, to obtain a green mortgage to help fund a heating and hot water system replacement.

Reduce your risk as a landlord with guaranteed rent from homes2let

Keeping up with ever-changing legislation and government policy, such as the gas boiler ban, can be a considerable burden for a landlord. If you’d rather let someone else take on this burden, and remove the worry of your rent being paid on time too, then why not consider the homes2let guaranteed rent scheme?

Our rent guarantee is provided courtesy of local authority tenancies, securing your rental payment in full by standing order every month, even during void periods.

To learn more about how you can release your day to day worries as a landlord, you are welcome to get in touch with our friendly team of experts.