As the UK shifts towards greener transport solutions, electric vehicles (EV) are becoming increasingly popular, and therefore the demand for EV charging points is also on the rise. Managing agents play a crucial role in facilitating the installation in leasehold properties, but with government grants for such projects set to end on 31st March 2025, time is running out to take advantage of financial support.
Why should managing agents act now?
The UK Government’s Office for Zero Emissions Vehicles (OZEV) charge point grant provides up to 75% of the installation costs, capped at £350 per charge point, with a limit of 200 applications per financial year. Additionally, the OZEV Infrastructure Grant for Landlords/ freeholders enables freeholders, or managing agents acting on their behalf, to claim up to £30,000 per building, depending on the number of parking spaces and infrastructure required. Whilst the grant is capped at £500 per parking spaces for up to 30 spaces per property, if managing agents and/ or freeholders don’t act swiftly they will miss the opportunity to take advantage of considerable financial support for EV charging point installation.
Key considerations for installing EV charging points
Before installing EV charging points at a leasehold block, freeholders or managing agents must navigate several legal, practical an financial challenges:
- Lease terms and legal authority
Not all leases permit alterations to common areas, and installing EV charging points often requires modifications to car parks or other shared spaces. Managing agents must review lease agreements carefully to determine whether freeholder consent or a lease variation is required. - Consultation with leaseholders
Under Section 20 of the Landlord and Tenant Act 1985, if the installation costs exceed £250 per leaseholder, a formal consultation may be necessary. Even if not required, engaging leaseholders early can help secure support and avoid disputes over service charge contributions. - Funding and cost recovery
Managing agents must decide how installation, maintenance and actual EV charging costs will be covered. Options include:- Using service charge funds (where permitted by the lease)
- Seeking external investment or funding
- Setting up pay-per-use models to recoup costs from users
- Planning and infrastructure challenges
Some leasehold developments may require planning permission, especially in conversation areas. Additionally, ensuring the building’s electrical infrastructure can support the additional load is vital to avoid future issues. - Ongoing management and maintenance
Once installed, who will maintain the charge points? Will an external operator manage them, or will responsibility fall to the managing agent? A long-term plan should be in place to ensure reliability and fair usage.
For further detail on the considerations to be made when installing EV charging points, our previous blog here may be of use.
Conclusion
With the government grant expiring soon, now is the ideal time for managing agents to act. That being said, it is crucial not to do so without thorough planning and ensuring all considerations have been made. It is also advisable to seek legal support to provide guidance on the options available for proceeding in relation to feasibility, funding, communications required, and many other elements involved.
