Boris Boiler Bonus boosts London landlords

Boris has just announced the capital’s first boiler replacement scheme - The London Boiler Cashback Scheme, which will provide 6,500 of the capital’s home owners and accredited private landlords with £400 cashback when they replace an old, inefficient boiler.

In just two years’ time - April 2018 - it will be illegal to rent out a property with an F or G Energy Performance Certificate rating under a new tenancy agreement, so the opportunity to improve your rating and receive some cash-back from the government will be music to the ears of many London landlords!

The scheme is first-come-first-serve, so if you are a London landlord considering replacing your existing boiler, you’re urged to act quickly!
In order to meet the rules of the scheme, the following criteria must be met:

The current boiler must be 70% or less efficient, in working order and the main boiler used to heat the property. Most gas, LPG, solid fuel or oil fuelled boilers with an EPC rating of G or below will fall under the 70% efficiency rating.

The replacement boiler must be an A-rated gas boiler (at least 90% energy efficient), or a renewable/low carbon heating technology.
The new boiler must be installed by a Gas Safe registered installer, a Microgeneration Certification Scheme (MCS) certified installer or equivalent, or a member of a competent persons’ scheme (such as OFTEC or HETAS).

In order to apply to the scheme, you must be accredited with the Mayor’s London Rental Standard, and you can apply for cashback on more than one property.

For more information on the scheme, and to check if you’re eligible, click here.
But what if you are not a London-based landlord, or are not one of the lucky 6,500 who are chosen to receive a Boris Boiler Bonus? Don’t worry, there are other types of scheme available!

If your tenant is receiving a combination of income-related benefits, they could be eligible for the boiler to be replaced via a government grant.
Your tenant must receive one of the following:

• Pension Credit
• Child Tax Credit (and their income is £16,010 or less)
• Working Tax Credit (and their income is £16,010 or less)
• Income Support
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Universal Credit (and they earned £1,250 or less after tax in any assessment period in the last 12 months)

If your existing boiler is over eight years old, or over five years old and faulty, a non-repayable grant could be supplied by one of the ‘Big Six’ energy suppliers (British Gas, EDF, EON, nPower, Scottish Power, SSE)

For more information, Gov.UK.

If your property is in Scotland, you may be eligible to apply for a Resource Efficient Scotland SME Loan of £1,000 to £100,000.
You must be registered as a private landlord to apply, but the loan is interest free, and is repayable over four years.
You are able to apply for the loan in order to install a new biomass boiler to provide low cost heat, but also to maximise your property’s green potential, with changes such as:

• Upgrading to energy efficient lighting to lower energy bills
• Upgrading to energy efficient heating systems to lower energy bills
• Insulating premises to reduce heating costs
• Installing solar PV to generate cheap, green electricity from sunlight
• Upgrading glazing to reduce heating costs
• Optimising voltage to reduce energy costs

More information is available at the Energy Saving Trust.