From this month several household bills will be increased. Including:
- Council Tax
- Broadband
- Water rates
- Energy (Electricity & Gas)
Depending on the type and diversity of you portfolio this could mean you will see a loss of monthly profit, there are ways to combat this but first let’s look at these price rises and what the damage is.
Council Tax
Council tax is another bill that will increase from April 1, with the majority of local authorities upping monthly payment by 5%.
The increase will depend on where you live, use this Council Tax calculator to find out yours: https://www.gov.uk/council-tax-bands
The reason behind the higher-than-normal increase is due to a change introduced by Chancellor Jeremy Hunt last year.
Broadband
Under the current rules, telecom companies are allowed to increase prices in line with inflation and around 4% extra on top of this.
The rate of Consumer Prices Index (CPI) inflation or Retail Price Index (RPI) are normally used to decide these rises.
How much your bill will go up by, and on what date – it is usually either from March 31 or April 1 – depends on your current deal.
Water Rates
Water bills are to see the biggest increase in bills for around 20 years from April 1, with the annual bill for an average household in England and Wales hitting £448.
The 7.5% increase will mean customers will pay on average £31 more than last year.
How much your bill is to rise exactly will be dependent on your water provider.
Energy Bills
The Energy Price Guarantee (EPG), which the Government introduced last year in place of the Ofgem price cap, will remain at £2,500 a year for the typical household from April to July.
It had been due to rise to £3,000 but Chancellor Jeremy Hunt announced this would not go ahead in his Budget last week.
The EPG sets a limit on what you can be charged for each kilowatt hour (kWh) of energy you use – so it isn’t a total cap on how much you could pay.
But from April, the £400 energy bill discount being supplied by the Government will come to an end.
This means you’ll no longer receive money off your bill each month – so how much you’re paying will go up.
The £400 discount to household energy bills had been given through instalments of £66 and £67 each month since October.
Standing charges – which are a fixed daily amount you have to pay for energy, no matter how much you us – are also going up from April.
So… what can you do to combat these price rises?
This is a tough time for everyone but portfolio Landlord are going to feel the pinch the most.
Here are a few tips we have found useful.
Review your energy bills/providers
Just because you have been with a provider for a long time does not mean you are getting the best deal. Shop around and see what other companies are offering.
There are also companies who specialise in utility management/reduction. Search for someone local to you.
Install energy saving equipment
If you are simply hoping for the best with your properties energy consumption this will come back to bite you.
There are many different systems out there that can help you to control energy usage, for example inspire home automation. This helps with timing hot water and heating as well as electricity timers.
Communicate with your tenants
Let the tenants in your property know that this is a scary time for Landlords, you may well find that they are extremely understanding.
These are just a few ways to minimise any damage that these rises may cause to your finances.
At WISE Lettings we offer a utilities management service for all of our Landlords, meaning we ensure our clients are paying as little as possible whilst still providing high quality accommodation across the board.
Get in touch for more info.
