FAQs
What are the benefits of the works for me?
There are several benefits of installing a ground source heat pump in your property. The first and biggest benefit, is the reduction in energy costs. If you are currently on electric storage heaters, and you move to a ground source heating system, you are moving from heating operating at most 100% efficiency, to a heating system operating at least 300% efficiency. Based on similar previous projects, we would estimate that your heating costs will be reduced by at least 50%.
Another benefit is improving your EPC rating. Moving from electric storage heating to ground source heat pumps can improve your EPC rating by up to 2 bands. This project will see all properties that receive works across the Balmoral tower blocks brought up to at least an EPC C. In flats, and especially tower blocks, there are limited options for improving your EPC rating, which we think makes this an attractive proposition, especially if you rent out your property and need to reach the minimum energy efficiency standards of achieving EPC C by 2030. Research also suggests that improving your EPC can result in a higher property sale price, with Rightmove quoting a 3% uplift for moving from D to C, and a 7% uplift in moving from E to C (https://www.rightmove.co.uk/news/articles/property-news/green-premium-epc-ratings/). So, on an EPC D property valued at £150,000, moving to EPC C would be worth an additional £4,500.
The ground source heat pump heating system will be net zero ready. While it will have some associated carbon emissions until the grid is decarbonised, once the grid is decarbonised (which the government forecasts will be 95% decarbonised by 2030) your property will have no heating associated carbon emissions.
How do I find out more?
The Council has a project webpage here: www.southend.gov.uk/WarmHomesHub. If you have any questions about the project, please contact retrofit@southend.gov.uk and one of our Resident Liaison Officers will be able to assist you - just make sure to reference your flat number and block. Please let us know whether you are happy for us to contact you by email in future, as we will be sending out updates throughout the project which will be done by email where possible.
Are the works mandatory?
No, the works are not mandatory for leaseholders. It is entirely up to you whether you would like to sign up. From a Council perspective, we are keen for as many residents as possible to sign up to maximise the value and impact of the project. We have outlined in the sections below what the works will entail, cost, and the significant benefits we believe the works will have for those opting into the programme.
For clarity, while there is a shared ground loop involved in the ground source heat pump system, this is not a move to communal heating- all residents will still be able to control their own individual heating systems
For Leaseholders
How much will the works cost and will they impact service charges?
The Council has secured £3.48m of grant funding through the Warm Homes: Social Housing Fund towards the work and will be match funding the remainder of the funding for the heating infrastructure and the cost of the work for Council tenants. Leaseholders will be required to pay for the cost of the work within their property. This will be capped at £10,000, due to Florie’s law, given that these are improvement works which have received government funding. However, we have received assurances that you would have a good chance of being successful if you applied for the Boiler Upgrade Scheme in conjunction with the Council funded work. This would provide £7,500 in grant funding towards the work inside your property, bringing the cost to you down to £2,500. The Council would directly invoice you for these works to make the process as simple as possible. We would offer a payment plan of up to five years for repaying your portion of the works. If you are on electric storage heaters, we would expect the new heating system to reduce your bills by at least 50%, meaning if you currently pay over £1,000 for your heating each year, the cost of the work would be offset by savings over a 5-year repayment period.
We would also like to make clear that the funding for these works is already secure, through a combination of Council funding and government funding. There will be no impact on your service charge as a result of this work.
What happens if I don’t sign up?
There will not be any kind of penalty for not signing up, the works are entirely voluntary. Further, the infrastructure supporting the heating system will be in place, meaning you would be able to connect to the shared ground array at a later date if you don’t on this occasion. However, given the scale of the Council project and cost inflation over time, it is likely that rates for an individual installation would be higher than the current project. Further, as mentioned the project will be completed in accordance with PAS:2035 and will be MCS accredited, ensuring a high quality install. Further, the Council’s dedicated resident liaison officers will be able to assist you with applying for the Boiler Upgrade Scheme if you require assistance. Finally, the payment plan offered by the Council is likely the most advantageous on offer, meaning any financing secured in future would be on worse terms.
Will the works affect me if I don’t sign up?
There will be some disruption during the installation period- although we will of course aim to minimise this as much as possible. Beyond this, there will be no impact on you if you don’t sign up to the work. All properties will still be individually heated, so there is no impact from moving to a communal heating system.
Does section 20 apply?
As the works are voluntary and leaseholders will not be charged via their service charges, the Council does not intend to carry out a formal Section 20 consultation. However, leaseholders will receive individual agreements detailing costs and the scope of works.
What if I’m planning to sell my property?
The Council also has an ongoing acquisitions programme. If you would be interested in selling your property back to the Council, please email oliviapigott@southend.gov.uk.