Green Deal For Tenants
Renting a property? You can still benefit from the Green Deal
If you are renting, you can still take advantage of the Green Deal as this new government initiative gives tenants the power to ask their landlords to knock their properties into shape with new energy efficiency measures.
No longer can landlords give their tenants the cold shoulder when they demand that steps are taken to make their home a bit warmer.
While homeowners can easily get a Green Deal provider like ETSenergy on the case, you may think that, as a tenant, you are doomed to suffer huge energy bills.
A lot of rented properties are old, drafty buildings, with thin windows which will rattle and whistle with any strong wind.
Knocking the heating on is like pouring a big load of cash down the drain as you very often won’t get the full benefit of it unless you have the proper insulation installed.
Having adequate insulation can slash over £300 of a property’s average energy bill.
If you are in the scenario and feel that you are going to be stonewalled by a landlord who is unwilling to take the right steps to make the property more energy efficient, then help is at hand.
In the years to come, landlords will be forced to carry out measures to make their properties more energy efficient if they are asked to by their tenants. That law will be enforceable from 2016, but the Green Deal is a great way for tenants and landlords to get a head start.
The Green Deal scheme involves the homeowner, in this case your landlord, taking out a loan to fund the improvements needed to bring the property up to the required energy efficient standard.
This loan is then added onto the energy bill for the property and paid back over a period of 25 years. However, the golden rule of the Green Deal is that the cost of the improvements cannot be greater than the savings the homeowner will make through their electricity bill, so they are guaranteed to save money.
There is another incentive for landlords to get on the ball with this now. From 2018, a landlord will not be permitted to rent out a property which has an Energy Performance Rating of F or G. Therefore, it is in the best interest of landlord to make the changes now and prepare themselves for future legislation. As it will be tenants who pay back the cost of the energy efficient measures through the electricity bill for the property, the landlord won’t even have to pay a penny.
With the UK homing in on its carbon emissions targets, this is a great way to make energy cheaper and more efficient. The evidence suggests than many landlords are already taking advantage of the Green Deal provided by companies like ETSenergy.
Over half of landlords surveyed by the National Landlord Association (NLA) said they would be prepared to have the necessary improvements made to their properties.
But, it seems they news still need to be spread as 33% of landlords admitted that they hadn’t even heard of the Green Deal yet. Considering the requirements to improve the energy ratings of their properties in the coming years, this is a cause for concern.
The chairman of the NLA David Salusbury believes more landlords need to up to speed on the latest initiatives to improve energy efficiency, or risk being left behind in the future.
“Whilst our research shows that many landlords are keen to take advantage of the Green Deal, a third of landlords are not yet aware of the initiative. We encourage landlords to become familiar with the Green Deal as the private-rented sector has a key role to play in ensuring Britain meets its energy targets,” he said.
“Furthermore, it is imperative that landlords future-proof their properties and their investments. The Green Deal is their opportunity to improve the quality of their properties and demonstrate their ability to engage with government initiatives without the burden of further regulation. If landlords don’t act now, they may find their property cannot be legally let come 2018.”