OFGEM has announced that the Energy Price Cap will increase from 1 January 2024.
This will affect most consumers who are not on fixed rates tariffs at this time.
The price of energy for a typical household who use gas and electricity and pay by Direct Debit will go up by £94. This will take the price cap from £1,834 to £1,928 per year.
This increase will affect both tenants who pay their own bills or have an energy supply contract and Landlords who include bills in the monthly rent.
In January 2023, Prime Minister Rishi Sunak set out his 3 main economic
priorities for the coming term. Those priorities were to halve
inflation, grow the economy and reduce debt. The Autumn Statement aimed
to reinforce these commitments with a plan to see success on these
fronts. With the rate of inflation at 4.6% in October 2023, the
government claim to have met at least one of those commitments. However,
it is unclear what steps to government took to allow them to claim
ownership of this reduction.
Inflation was widely expected to fall as
the large energy and fuel increases from the previous year dropped out
of the equation.
The UK Government has recently scrapped (October 2023) proposals for changes to Energy Efficiency standards previously due to be introduced in 2028. This was announced in a review of green policies and means the scrapping of proposals to force all Landlords to adopt a minimum standard of energy efficiency for rental properties.
The Renters Reform Bill is a proposed piece of legislation in the United
Kingdom intending to change the law on renting homes including the
abolition of no-fault evictions. It is also intended to abolish fixed
term assured tenancies and assured shorthold tenancies in favour of
periodic tenancies.The ban on no fault evictions has been delayed with no commitment to a future date.
Is there a rent emergency due to ever increasing rents and serious lack of available accommodation? Charities in Greater Manchester have declared a Private Rent Emergency due to these and other issues.
Other problems such as a lack of security and poor conditions can leave families feeling vulnerable and, due to the lack of stock, don’t feel they can complain to the landlord for fear of eviction.