The Green Deal brings about huge home improvement possibilities for all UK householders, including Commercial property owners, landlords and their tenants.
Due to increased pressure on the UK Government to improve the energy ratings of UK homes and properties, the Government is launching the Green Deal scheme in October of this year, which will aid the property sector manage upcoming changes to legislation in 2016 and 2018.
From 2018 the Energy Bill will ensure that the legal minimum energy efficiency standard for homes rented from a landlord will be an “E” class. From 2016 tenants will be able to demand reasonable energy efficiency improvements from their landlords. If these requests are refused local authorities will be able to compel landlords to undertake the improvements. They will also be able to fine landlords for not undertaking the improvements when first requested by the tenant.
The Green Deal scheme hopes to ease the financial burdens of improving energy efficiencies of rented accommodation and commercial properties and landlords will be able to receive improvements (assuming the Green Deal home assessment and plan is approved) without any up-front payment. The costs of the work will be attached as a loan to the utility meter of the property and repaid by the tenant, without significant increases in their utility bill payments.
It is hoped that by 2018, when the full effect of the Energy Bill comes into effect, landlords will be in a better position with regards to the ratings of their properties owned. From 2018 Landlords will not be allowed to let out any property with an Energy Performance Certificate banding lower than ‘E’ 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’.
The Green Deal scheme is about to go live in October of this year and it is hoped that landlords will take full advantage of the scheme. Not only, for some, is it an opportunity to increase the values and rental income of their properties, but in turn, the increased maintenance and reduced energy bills will provide tenants with warmer properties in which to live that are cheaper to heat.