The Green Deal for Landlords

The green deal for landlords can improve efficiency and help make properties more attractive to tenantsThe Green Deal is a Government scheme to help landlords and private house holders improve the energy efficiency of their homes via an up-front loan that is then paid back via the electricity bill. 

 

For landlords, the Green Deal offers a way to make improvements to rental properties that will:

  • Improve energy efficiency and give a better EPC rating. This can make your property more attractive to new tenants and hence make it easier to let, reducing the periods where you have no tenant in the property.
  • Reduce overall energy bills for tenants which could help to retain them for longer.
  • Reduce maintenance costs on the home as a well-insulated, warm home will reduce problems with damp, condensation and frozen pipes.

 

The Green Deal can help fund energy efficiency improvements including:

  • Loft insulation.
  • Renewable energy.
  • Replacement windows.
  • Draught proofing.
  • Cavity wall insulation (for homes typically built after 1930).
  • Solid wall insulation (for homes typically build before 1930).
  • Boiler replacements.

Landlord duties under the Green Deal

At the moment, if a tenant requests work to be done on the rental property under The Green Deal, the Landlord can refuse. However, changes to the Energy Act 2011 state that from 2016, Landlords won’t be able to refuse reasonable requests to install Green Deal measures.  By 2018 there will be a legal minimum EPC rating requirement on privately rented properties.

Landlords should be aware that if they wish to implement Green Deal measures in their rental property, they must get the agreement of their tenant as it will be the tenant who, in most cases, is responsible for paying back the loan via their electricity bill. When the tenant leaves the property, the new tenant will have to be made aware of the improvements made, the extra charges that will be made to the electricity bill, the name of the provider and the length of the Green Deal. 

 

Tenant Duties

Tenants wanting to implement Green Deal improvements in the properties they rent must get the permission of the landlord prior to any works being carried out. 

More information about the Green Deal for Landlords

This handy guide from the Government gives Landlords a summary of the Green Deal

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/65555/6636-quick-guide-to-the-green-deal-for-residential-land.pdf

 
 

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