‘Green Deal’ Update

 How Landlords can make their properties more energy efficient at no cost.

As part of the Coalition Agreement of June 2011 to improve the efficiency of the UK housing
stock and to meet the EU target of a 20% reduction of CO2 emissions by 2020, the ‘Green Deal’ ( Energy Act 2011) which will be available to all Landlords,  provides a method whereby this can be achieved with no upfront costs payable by Landlords.

Whilst this is due to be rolled out from October 2011, a recent update from the Department for Energy and Climate Change, stated that the finance structure for the scheme had not yet been confirmed and this was now likely to be from late January 2013. Rather than an up-front capital payment, costs are attached as a loan to the utility meter at the property, thus payment is made by the energy payer (usually the tenant).  Attached to this is a ‘Golden Rule’ that the energy bill plus repayment cannot exceed that of the previous fuel bill.

The scheme can be used to pay to improve the energy efficiency of homes through loft insulation, cavity wall or floor insulation, draught proofing and water pipe lagging and may extend to boilers, double glazing or solar panels.

It is anticipated that Landlords will further benefit as well insulated and maintained properties not only encourage longer tenancies but better maintains the fabric of the building and lessens the likelihood of damp and mould and issues with freezing pipes.

There are obviously several considerations as to how this would work in practice for Landlords, but the National Landlords Association, having undertaken consultation with their members conclude that this is a scheme that will be taken up by Landlords.

See www.decc.gov.uk  for further details