By Daniel Parry
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If you are a domestic landlord then you may have already heard of the Heat Network Regulations. These are new regulations aimed at landlords renting properties to multiple tenants. Recently we’ve been getting quite a few enquiries about this subject so we thought it worth our while to pull together this overview.
Some of our clients, operating with bills inclusive rent and a fair usage policy, have raised concerns about the potential need to change the way they work as a result of these regulatory changes. This does not appear to be the case for the majority of our landlords…
Determining if you are covered by these regulations…
It’s not been easy understanding these new regulations so Glide went directly to the National Measurement and Regulation Office. We wanted to find out straight from the horse’s mouth about how these regulations impact our customers. They gave us the usual disclaimer that the information provided isn’t legally binding. Glide therefore must also state that this information is provided only as a guide. If you think you are impacted then we would always advise seeking your own guidance. That said, we have been told this by the NMRO Enforcement Authority which we believe is accurate at the time of writing.
Our intention is to clarify if these new regulations impact you and if so point you in the right direction for any next steps.
Summary…
If your property is not separated into ‘apartmented’ units then it is very unlikely that you will be covered by these regulations. If your property does have separate ‘apartmented’ units then you probably will be impacted. If you think you are affected then we suggest that you read into this subject in more detail. You will also probably be required to submit specific information by the 31st December 2015 deadline.
We’ve found that NMRO were a useful point of contact if you have any questions.
So, what do they mean by ‘apartmented’?
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NMRO provided some detail about what they consider to be domestic ‘apartmented’ accommodation. They defined it as accommodation which contains at least the following:
- a kitchen or cooking area
- a bathroom (including a toilet)
- a space intended to be for living and sleeping in
It is our opinion that the majority of student and HMO properties operated by Glide’s clients will not fit into this ‘apartmented’ category. It is therefore our interpretation that they will be unaffected by this change in regulation.
Included: Not included:
| Landlords who charge for heating and cooling in domestic ‘apartmented’ accommodation are included. They defined it as accommodation which contains at least the following:- a kitchen or cooking area- a bathroom (including a toilet)- a space intended to be for living and sleeping in. This applies to an individual space, rather than a shared household. E.g. a house that has been converted into a flat or bedsit which relies on one heating system is liable, or a block of apartments that are supplied by one heating system. There are also many instances where the non-domestic properties that are included. These are not covered by the overview.
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Landlords who do not charge separately for heating and cooling (e.g. properties where rent is bills inclusive and no Fair Usage Policy applies).Regular domestic households where tenants share communal areas such as bathroom and kitchen. Households with locked bedrooms that include en-suites are also not included within the new regulations.Situations where tenants sort out their own bills.If you need more information, please refer to the NMRO website.
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What to do if you think that your property is included…
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If you think your property is eligible then you must notify the NMRO by using the online template by 31st December 2015. You will then have to carry out a feasibility to understand if it is viable for you to install heat meters. If it is feasible then you must install these meters by 31/12/2016. If it is not feasible then you must continue to notify NMRO at least every 4 years.
More information and contact details can be found on the NMRO website: https://www.gov.uk/heat-networks