Heating remains a hot topic as properties are expected to meet minimum standards and tenants seek energy efficient homes. Brendan Scott from Finn Geotherm looks at how renewable heating can help.
As a private landlord, most domestic properties in your portfolio are required to have an Energy Performance Certificate (EPC). Under the latest Minimum Energy Efficiency Standards (MEES), if the EPC rating is F or lower, it may be subject to a substantial fine. MEES are set and enforced by the Government and this new requirement has been in effect since April this year. Further compounding the need for better EPCs, has been the hike in energy bills which has seen tenants increasingly looking for more energy efficient places to live.
By 2025, the Government expects all rental properties to achieve a minimum C-rating on their EPCs. While this is an ambitious target, there is no doubt that significant changes must be made to UK housing stock to enable the nation to work towards achieving net zero carbon emissions. With 19% of the UK greenhouse gas emissions come from heating, and more than three-quarters of this from domestic buildings*, it is vital that everyone is doing their bit.
But how can this be achieved?
Insulation is often thought to be the best place to start to boost energy efficiency – the idea to keep any heat generated inside the property for as long as possible. For modern properties with cavity walls and lofts, layers of additional insulation can be easily fitted – and there are often grants readily available for this. However, in the case of older buildings such as period cottages, this just isn’t viable for a variety of reasons. While exterior cladding may add insulation, it will have a major impact on the overall appearance of the property and may even be prohibited if the home is listed. It can also increase the risk of damp if incorrectly installed. Interior insulation can make less of an impact visually but is highly disruptive to tenants while it is being fitted onto the walls and subsequently redecorated. Despite all the work, additional insulation and cladding typically only reduces heat loss by 50% in the best possible cases.
Secondary glazing is also quite similar in terms of potential limitations due to its impact on aesthetics and disruption caused during the installation process.
If insulation and glazing aren’t viable or won’t make enough impact on the EPC, reviewing the heating provision itself may be the best solution. While many properties may be heated by conventional oil or gas boilers, there is also still a huge number of homes, particularly housing association properties, which rely on electric storage heaters. These heaters are costly and ineffective to run.
By installing a heat pump system, it may be possible to boost your property’s EPC rating enabling you to meet your obligations under MEES. Typically, EPCs can go something like an E or F to a C or D with the right heat pump installed.
Heat pumps use renewable technology to deliver heating and hot water. They work by taking background heat out of the air or ground and, using a process which is like refrigeration in reverse, generate heat for radiators/underfloor heating and hot water taps. An air source heat pump has a fan unit which can be fitted outside the property and ground source works using a collector loop installed underneath the ground in an area such as a lawn. Heat pumps use existing pipework and radiators, although a small number of upgrades may be required to make the most of the new system.
One of the key benefits of the heat pumps is they don’t rely on other energy efficiency measures such as insulation in order to work. The systems deliver low, steady state heating which warms up the entire fabric of the building gradually to retain the heat – in properties such as old houses with thick walls and large fireplaces, this is particularly effective.
Heat pumps are also highly energy efficient, delivering around 3kW – 4kW of heat for every 1kW of electricity used (compared to something like an electric storage heater that produces 1kW of heat for every 1kW of electricity). By replacing electric or gas heating with a heat pump, energy consumption can be reduced by around 75%, meaning emissions are also reduced at the same rate.
For landlords or housing associations with more than one property on the same site, a district heating scheme is also certainly worth considering. These schemes work by using one central heat pump system to deliver heating and hot water for any number of homes, from two to 100+. They make servicing and maintenance easier too, with one central plant room located separately from the properties it heats.
There are currently a range of funding options available to assist with heating upgrades. These include the Boiler Upgrade Scheme – worth up to £6,000 for individual ground source or £5,000 for air source projects, and the Home Upgrade Grant – delivered via local authorities to improve the energy performance and heating systems of off gas grid homes in England.
While the incentives are there, now is the ideal time to renew heating systems to help landlords meet MEES and create energy efficient, environmentally friendly and desirable properties to let.