April Newsletter

Dear Landlord

Chancellor Rishi Sunak's Spring Statement 2022 announced new measures to support people and businesses through the ongoing cost of living crisis, including cutting the VAT on energy saving materials for residential properties to zero. March also saw the launch of the government's Homes for Ukraine scheme, allowing those in the UK to open up their homes to welcome refugees from Ukraine. We look at what this means for landlords with tenants who wish to act as sponsors. Finally, two right to rent changes also come into effect on 6 April - see our previous newsletter for more detail on these.

All the best,

The Abacus Homes team

Our rental market performance over the past month

Here is a snapshot of how our agency performed in March:

• We achieved an average rent of £839
• Our void periods were 2 days on average
• Our deal turnaround times were 4 days on average

Zero percent VAT on energy saving materials

One of the big announcements in Chancellor Rishi Sunak's Spring Statement 2022 was that VAT on energy saving materials for residential properties will be cut from 5% to zero for the next five years. Under the current energy efficiency regulations, privately rented properties must have a minimum energy performance rating of EPC Band E. Landlords are required to spend a maximum of £3,500 on upgrades to their properties if they don't meet this threshold. If an EPC band E rating can't be reached within that limit, landlords can obtain an exemption. It should also be noted that the government is considering increasing the minimum energy performance rating for privately rented properties to EPC Band C by 2028. The energy saving materials eligible for zero-percent VAT are:

• insulation for walls, floors, ceilings, roofs or lofts or for water tanks, pipes or other plumbing fittings
• draught stripping for windows and doors
• central heating system controls (including thermostatic radiator valves)
• hot water system controls
• solar panels
• wind turbines
• water turbines
• ground source heat pumps
• air source heat pumps
• micro combined heat and power units
• boilers designed to be fuelled solely by wood, straw or similar vegetal matter

Government launches "Homes for Ukraine" scheme

The government has launched its "Homes for Ukraine" scheme, which allows individuals to welcome Ukrainian refugees and their immediate families into their homes or other properties that they own, rent-free. The government will then compensate any of these individual sponsors with £350 a month per residential address, for a maximum of 12 months.

Anyone in the UK with at least six months' leave to remain and with a spare room or self-contained accommodation that they can offer for at least six months can register to be a sponsor in the scheme. Tenants who have their landlords' permission can act as sponsors.

Landlords and tenants offering a room or self-contained accommodation will have to pass eligibility checks, which will include a home visit, and adults in the household will need to pass a Disclosure and Barring Service check. Any applicant from Ukraine accepted on the scheme will have completed the visa application process, with the associated police and antiterrorism security checks.

If you or your tenants have any questions about becoming a sponsor under the scheme, please get in touch with us.