Utility Allowance for 2024

Utility Bill Allowance for 2024

It seems we are asked this on most viewings so we thought you’d appreciate us outlining the utility overspend cap used by Topproperty Student Homes.  This applies for tenancies starting July and August 2024.

We’re making a few changes.  While the starting point for the usage cap is remaining the same – the “OFGEM capped costs for an average house” – we have undertaken a detailed analysis of the usage of our houses from move out and move in data from the last decade.  This gives us a decent picture of how much utility costs are across the whole porfolio and what to set the values to for the allowance.

The biggest change this year is changing our model to a usage overspend.  In prior years, if your landlord had a poor deal you were likely to reach the cap sooner and you’d be more likely to be asked to contribute towards any utility cap.  Now we are using the actual usage of gas and electricity – measured in Kilowatts  – and you’ll only be charged for usage above the threshhold.  To make this easier to understand we are including a price with this, so you can relate it to what you may be paying now, and what for example your parents or relatives may be paying for their house.

The allowance for 2024 will be:

3 bed houses: 2500 KWh for elec, 12500 KWh for gas, approx £1942 *
4 bed houses: 3000 KWh for elec, 13500 KWh for gas, approx £2157 *.
5 bed houses: 3500 KWh for elec, 14500 KWh for gas, approx £2372 *
6 bed houses: 4000 KWh for elec, 15500 KWH for gas, approx £2588 *
7 bed houses: 4500 KWh for elec, 16500 KWh for gas, approx £2803 *
8 bed houses: 5000 KWh for elec, 17500 KWH for gas, approx £3018 *
9 bed houses: 5500 KWh for elec, 18500 KWh for gas, approx £3233 *
10 bed houses: 6000 KWh for elec, 19500 KWH for gas, approx £3726 *
* The approximate cost is based on the Ofgem cap rate for customers on a direct debit tariff from 1st October 2023 and includes standing charges and residential utility supply VAT at 5%. This approximate cost is subject to change based on the contract rate you have with your supplier, any fluctuations to the Ofgem cap amount and any government price cap that may apply to your utility account from time to time. The approximate monetary cost for the cap is subject to variation however the actual unit/kwh costs are not.

Additionally, if there is any government funding finding it’s way to the landlord – like it was in 2022 and 2023 – it will be removed from the utility overspend costs.   All this will help keep any impact of the rise to utility cost to a minimum.

We’ve been through a couple of interesting years and we’ve seen a drastic rise to the costs facing landlords however things have now stabilised – we are hoping with some good financial governance from Westminster things will settle down further.

If you have any questions when reserving a house please let us know!

Published by: Simon Topple on November 14, 2023