The
new coalition Governments coveted Green Deal, which
is an attempt to insulate British homes and reduce
energy usage and costs has today, made it into the
statute books as the Energy Act 2011 and is now law,
the Green deal is set to be introduce in late 2012.
The
Green Deal, as it will be known, will revolutionise
the energy efficiency of the nation’s homes,
it will allow energy efficiency improvements to be
carried out with no big upfront payout.
What
does this mean for the rental market? from Autum 2012
landlords and tenants will be able to benefit from
the new Green Deals Scheme for home improvements and
energy efficiency with approved Green Deal providers
offering upfront finance to businesses, private landlords,
and householders to cover the cost of energy efficiency
improvements, such as loft, cavity, and external wall
insulation, and the best bit, you don’t pay
a penny for this up front.
The
cost of these improvements will be paid in instalments
over 25 years through a surcharge on your fuel bills,
but unlike a loan it is not linked to the person,
it is linked to the property, therefore if you move
home the payments do not follow you, the next occupant
will simply take over the payments from their utility
bills as they will then be the ones benefiting from
the improvements and the subsequent reduction in the
energy bills. This is a great step forward for tenants
or owners on a low income or who don’t have
the spare cash to update the energy efficiency of
their homes and it is also a bonus for landlords who
will see the rewards with little or no outlay.
From
April 1, 2018, buy to let landlords must comply with
the new standards, and must provide the proof to their
tenants in the form of an energy performance certificate
(EPC). Under the new legislation if a home fails to
meet the minimum standards, for example an E rating
on an EPC, then the landlord will not be able to let
the property until the work that is required to bring
the property above an E grade has been completed to
meet the guidelines. Landlords who do let their properties
which do not meet these standards or breach the guidelines
could face a fine of up to £5,000
The
Green Deal and Energy Act 2011 will also go a long
way in helping to improve the standard of living in
the UKs homes, having a knock on effect in terms of
the money saved from heating an un-insulated home.
