The effect of climate change on the lettings industry has been a hot topic for many years. It's important to understand how this phenomenon can affect your business, so that you can take steps to mitigate its impact.
Climate change is the long-term change in the climate of Earth. These changes occur over many years and decades, and they can be caused by many different factors. The most important factor is the release of greenhouse gases into the atmosphere by human activities like burning fossil fuels (coal, oil, and natural gas), deforestation and agricultural activities like cattle raising.
In the UK, climate change has been happening for centuries. However, climate change has become more noticeable since the 1950s as a result of increasing concentrations of greenhouse gases in our atmosphere. The UK has experienced an increase in average temperatures of about 0.6°C over the last century; this means that winters are milder and summers hotter than they used to be.
According to research conducted by the University of Warwick and University College London, the number of heatwave days in Britain has increased by over 50% since 1970. This means that more people are moving away from urban areas due to hotter temperatures.
This shift will have a significant impact on the lettings industry, as more people are likely to move into rural areas where there are less housing stock available and fewer services than in cities.
In order for landlords and letting agents to succeed in this new environment, they need to be able to adapt quickly and effectively if they want their business model to remain viable in future years
Some of the most imminent risks to the industry caused by climate change include:
Flooding
Flooding is one of the most imminent risks of the climate change to the letting industry in the UK. Flooding has been estimated to cost around £1 billion per year, with research suggesting that there will be an increase in flood events as a result of climate change. The number of homes at risk from flooding is expected to rise by 10% by 2050, with some estimates suggesting that this could increase up to 50%.
The impact of these changes will have a significant impact on how landlords manage their properties and how tenants can find suitable accommodation at an affordable price. As well as providing advice on how landlords can manage their properties better and protect themselves against future flooding events, we also offer insurance products for both landlords and tenants that offer cover against flood damage as part of their service.
Over a quarter of all properties in England are at high risk of flooding due to their proximity to rivers, canals or coastal areas.
Flooding is one of the most common causes of building damage and can have a significant impact on a business's operations, as well as its ability to generate revenue. Flooding can lead to problems such as:
-Damage to electrical equipment (e.g., computers)
-Inability to access facilities (e.g., reception area)
-Flooded basements or other internal areas
Energy Efficient of Letting properties
The UK letting industry has a strong focus on energy efficiency, with the majority of landlords opting to install energy-saving measures in their properties. With some landlords spending up to £3,000 per property on insulation and heating systems, it's no wonder that the UK is becoming one of the most sustainable countries for rental accommodation.
It is not just about saving money and energy; it also reduces global warming and other environmental problems.
Despite the government's target to retrofit 60 per cent of properties with better insulation by 2025, and for homes to be rated EPC C or above, it has yet to formulate a plan on how it will meet these targets.
Heat Waves
This is an issue that affects all businesses, but it is especially damaging to landlords who rely on rent payments from tenants to cover their costs. If a landlord loses tenants due to excessive heat or smoke damage caused by a fire, they will have to find new tenants quickly before they lose too much income. This can be very costly if they have invested heavily in marketing campaigns or property improvements. It can also be difficult to find new tenants in hot weather as many people will have holiday plans already booked and may prefer more temperate locations such as the coast or mountains where it is cooler than urban areas like cities which are hotter due to lack of space for cooling down.
BLUESTONE PROPERTIES
Bluestone Properties is a letting and property management company based in South London. If you're a landlord in South West London and surrounding areas, feel free to contact us on how we can help you.
