THE GREEN DEAL AND THE ADVANTAGES FOR LANDLORDS AND SECOND HOME OWNERS
The Green Deal is the flagship Government scheme intended to help landlords and second home owners in in Glasgow, Lanarkshire, Central Scotland and the rest of the UK to improve the energy efficiency of their properties FREE of charge. Therefore, if ever a scheme was designed to assist landlords and second home owners The Green Deal is the one.
Just suppose someone was to approach you and offer to replace the old boiler, the old windows and doors and insulate the roof and walls in the property you rent out. Your first reaction would be to ask “how much is it going to cost me?” If they replied “nothing” you would automatically think this was some sort of scam. However, The Green Deal does exactly that. Through The Green Deal you are able to upgrade the look of your house as well as vastly improve the energy efficiency of the property.
A major factor that is associated with rented properties throughout Scotland is that expensive home improvements are frequently put off until the last minute, or never done at all, due to high costs or time restrictions. This has a twofold effect, firstly you will have unhappy tenants who want to live in an energy efficient and attractive property and they rightfully expect the landlord to keep it up to date. Secondly, you could be left with a property which is unappealing and therefore very difficult to rent out, problems landlords can do without. However, The Green Deal allows you to carry out all the necessary improvements without it costing you a single penny.
HOW DO LANDLORDS GO ABOUT GETTING THESE IMPROVEMENTS DONE?
It’s simple, first of all contact The Energy Advisory Service and one of our Approved Green Deal Advisors will visit your property and carry out an assessment and advise you of the recommendations necessary. Our Approved Green Deal Advisor will then pass this information on to our Green Deal Provider who will arrange the finance and instruct our Green Deal Installer to carry out the work required. At no point throughout the process will you have to spend any money.
HOW IS THE GREEN DEAL LOAN REPAID?
It’s not, well not by the landlord. When a landlord instructs a Green Deal project to go ahead the repayments are made via the energy bill. This means the tenant who is responsible for the utility bill pays the loan off. This may sound unreasonable on the tenant but it’s not, far from it. Because all the energy efficiency improvement measures have been carried out on the property the tenants energy consumption will be greatly reduced which results in smaller energy bills. The Green Deal loan will be set over a fixed number of years and the subsequent savings generated by the improvements go towards paying the loan back. Therefore the tenant will be paying the same amount, or lower, for their energy bills and will also benefit from living in a warm, comfortable and energy efficient property.
As a result the landlord gets an updated, energy efficient property which has cost them nothing to upgrade that is easy to rent out and tenants get the property they want without either of you having to pay out more than you already do so.
SHOULD TENANT’S BE CONCERNED ABOUT BEING RESPONSIBLE FOR THE DEBT?
No, the responsibility of a Green Deal loan lies with the property. The Green Deal is not means tested or credit checked and when somebody moves out of a property, whether they are a tenant or a homeowner, the debt is repaid by the next occupier of the property through the energy bill as was previously the case.
THE CONSEQUENCES FOR LANDLORDS SHOULD THEY NOT MAKE THE IMPROVEMENTS
From 2016, tenants will be able to demand energy efficiency improvements are undertaken by their landlords. Should landlords refuse to do so (without a justifiable reason); local authorities will have the power to force landlords to undertake the improvements. They will also have the authority to fine landlords for not making the improvements when the tenant first requested them. Fines are expected to be around £5,000.
Furthermore, in 2018 The UK Government is introducing Minimum Energy Efficiency Standards. This means that Landlords will not be permitted to rent 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 to bring the property up to an EPC band E or above.
The benefits that The Green Deal offers landlords and tenants in Glasgow, Lanarkshire, Central Scotland and the rest of the UK are enormous. For impartial, qualified and authorised advice on whether your property is eligible for Green Deal improvements contact The Energy Advisory Service today.