posted by Carolyn Kempster on 14 June 2012
tags: Green Deal ,
Research conducted by the Association of Residential Letting Agents (ARLA) found that 51% of landlords have not heard of the government's upcoming Green Deal policy, and a third did not know the energy rating of their rental property.
Perhaps this is an indication that landlords have been less than enthusiastic about improving the energy efficiency of their rental properties in the past as it has involved them having to shell out for the works and then the tenant, who pays the energy bills, getting the benefits. However, with the proposed legislation that will mean private rental properties must meet a minimum 'E' rating on their EPC by 2018, landlords need to gen up on what they can do to make their rental homes more environmentally friendly.
Now that the government have published their response to the Green Deal consultation this week and a few questions have been cleared up, it is becoming clear that the Green Deal could go some way towards resolving the disconnect between the landlord paying out and the tenant enjoying the energy bill savings. Green Deal will allow landlords to improve the energy efficiency of their properties without any upfront costs.
Taking a Green Deal loan out on the property and repaying it using the government's 'Golden Rule' principle should be cost neutral in principle. The Golden Rule states that the amount of the loan repayment should be equal to or less than the amount of money saved on the energy bills. So works can be carried out without upfront costs, and then the energy bills should not be any more than they were before.
The loan is taken out against the property and the responsibility for repayment will lie with whoever pays the electricity bill. So while the property is void the landlord will make the payments - the same as is currently the process for energy bills.
Given all this, those 51% of landlords who haven't even heard of the Green Deal need to be reached somehow, so that they don't miss out when Green Deal launches.
2012 United Sustainable Energy Agency. A not for profit company. Incorporated as a Company Limited by Guarantee. Registered in England No. 3553525.