Is the Green Deal the Real Deal..

By: Colin Campbell

A new initiative announced this month by Chris Hulne, the Energy & Climate Change Secretary has been supported by landlords in the private rented sector.

The ‘Green Deal’ is aimed at providing the nation’s increasing energy needs by finding cleaner and more efficient ways of sustainable consumption. Pointing out that a quarter of the UK’s carbon emissions come from housing, Mr. Hulne said:

‘Labour failed to improve the private rented sector, which benefited from less than 2 per cent of these installations. Privately rented homes have far too many leaky lofts and icy drafts. Over half a million have the lowest energy rating. The Green Deal will change this. We should no longer condemn those who rent privately. Landlords will face no upfront cost, and will benefit from an improved property. By 2015 every tenant should be able to be as warm as toast in their home. This is a win, win, win situation – for the landlord, the tenant, and the climate.’

His announcement has found support from within the Landlord sector. The Residential Landlords Association (RLA) has announced that it is to set up a technical committee, with other bodies, to examine the technical problems associated with improving energy efficiency of older properties. The National Landlords Association is also hoping to work with the Department of Energy and Climate Change in its efforts to encourage and assist individual landlords achieve the goals of The Green Deal. With the aim that the every tenant should be ‘warm as toast’ by 2015, what practical help can landlords expect until then.

Under the Government’s Landlords Energy Saving Allowance (BN 50), landlords and property investors who pay income tax (trading and other income) can benefit from tax concessions of up to £1,500 per year per property to help with the purchase and installation of insulation and draft proofing.

The Government also planned to introduce a green loan scheme which would cover the costs of energy efficiency improvements to properties, with the money paid back over 25 years through utility bills. The money saved through reduced energy consumption as a result of the improvements would offset this. As this was an initiative under the previous government we will have to wait and see if it remains in its current form.

Back in May, we drew your attention to the ‘Warmfront’ Grant, which is still open, offering grants to low-income households and tenants in receipt of benefits.  Providing central heating systems, loft insulation, cavity wall insulation and draught-proofing, the Warmfront initiative has been popular with long-term tenants and landlords.

It is clear that landlords must be ready for a ‘greener’ and more energy efficient private rental sector.