How will it Work?
With a Green Deal package, landlords will be able to receive energy efficiency improvements without any up-front capital payment. The costs of the works will be attached as a loan to the utility meter of the property and repaid by whoever pays the utility bills – in most cases, the tenant.
From 2016, tenants will be able to demand energy efficiency improvements from their landlords. Should landlords refuse consent (without a justifiable reason), local authorities will be able to compel landlords to undertake the improvements. They will also be able to fine landlords for not doing the improvements when the tenant first asked. It is likely that fines will be up to £5,000.
Further, in 2018 the Government will bring in minimum energy efficiency standards. Landlords will not be allowed to let out any property with an Energy Performance Certificate (EPC) banding of ‘F’ or ‘G’ unless the landlord can prove they have done all they can through the Green Deal and other subsidies to bring the property up to an EPC Band ‘E’.
As a Seaford letting agent we are excited about the news. The scheme will be rolled out in October 2012 and it is hoped that landlords will take full advantage. Not only is it an opportunity to demonstrate that landlords are capable of self-regulating when provided with financial incentives, it is likely to reduce landlords maintenance bills and provide tenants with warmer properties in which to live that are cheaper to heat.