Electric vehicles are kinder to the environment and currently kinder on the wallet, with the added bonus of being unaffected when it comes to environmental protests and oil refinery blockades. Therefore it’s no surprise that tenants are looking for properties where they can park up and plug in. Here are four reasons why landlords need to accommodate the ‘leccy car.
1. Landlords are eligible for a 75% charging point discount
Although the Electric Vehicle Homecharge Scheme has come to an end, the Government has introduced a replacement in the form of the ChargePoint grant – a new initiative designed specifically for landlords. On offer is a 75% discount on the cost of purchasing and installing an electric vehicle charging point to a residential buy-to-let property.
There are a number of limitations to be mindful of. The discount is up to the value of £350, the landlord must own the parking area, and they should be VAT registered or registered at Companies House to qualify.
2. Tenants will prioritise your properties….and pay more
When E.ON recently questioned Gen Z (aged between 16-27) and Millennials (aged between 28-41) about their property search habits, 80% of Gen Z and 78% of Millennials said they would discount properties that didn’t meet the minimum energy efficiency rating. In addition, four in five people (81%) aged between 16-41 would pay a higher price for a property if it had an electric vehicle charger, a heat pump or solar panels.
3. Your tenants are increasingly likely to own electric vehicles
Drivers are already working ahead of an outright ban on the sale of new petrol and diesel vehicles. Sales of electric vehicles increased by 186% in 2020, report Heycar, while 20% of cars sold in the UK this year have been electric models, according to data from the Society of Motor Manufacturers and Traders. Electric vehicle sales are projected to rise by the end of 2022, with electric cars likely to outsell diesel and mild hybrid diesel models, says Heycar.
4. Tenants want the option of filling a tank with electricity
Tenants will increasingly turn to electric cars as a way of saving money as well as the environment. Even with energy price caps doubling in April, figures published by ThisisMoney suggest the cost of charging an electric vehicle will likely remain cheaper than a tank of petrol or diesel. Monthly charging costs of around £50 are achievable, especially as many utility suppliers offer dedicated electric vehicle charging tariffs.
Support tenants who want to make their own application
Landlords who are not VAT registered or registered with Companies House can still benefit from a discounted electric vehicle charging point via their tenant. The ChargePoint grant runs a concurrent scheme aimed at tenants in flats and single-use accommodation, with renters able to enjoy 75% off the purchase and installation of an electric vehicle charging point. Landlords who want to encourage their tenants to apply can point them in the direction of this dedicated Government webpage but it’s worth noting that renters must own, lease or have ordered a qualifying electric vehicle and have access to dedicated off-street parking at their rental property.
The Government’s website carries full details of how landlords and tenants can apply for a ChargePoint grant and for any other advice regarding lettings, please contact the team today.