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15th September 2011

Landlords keen to take advantage of Green Deal

Owners of buy-to-let homes could find that they can boost the value of a UK property investment by taking advantage of the government’s Green Deal.

According to a new survey, many landlords are looking to do just this, who are also tempted by the lower energy bills investing in energy efficiency improvements could bring for tenants.

Under the Green Deal, homeowners and landlords will be offered loans to spend on upgrades to reduce the energy consumption of their properties.

These loans will then be repaid through a levy added to utility bills, although the increased efficiency will mean that energy costs will actually be lower overall.

The report stage of the Green Deal bill is due to be read before Parliament this week (September 14th) and loans are likely be available to property owners from October 2012.

A survey by the National Landlords Association (NLA) found that, if the bill is passed, 24 per cent of landlords would definitely take advantage of the Green Deal, while a further 38 per cent would consider it.

Landlords said the main reasons for considering the Green Deal would be to reduce energy consumption and bills for tenants, add value to the property and to become more eco friendly.

However, 21 per cent of landlords said they are unsure about the deal and 17 per cent say it has no appeal.

This is despite the deal offering "an excellent opportunity for landlords", according to NLA chairman David Salusbury.



"The scheme guarantees tenants lower utility bills while providing them with warmer homes and landlords will benefit from long-term improvements to their properties," he said.

"It's pleasing to see that two-thirds of landlords are considering using the Green Deal to improve their properties when grants become available next year, but the actual cost of these improvements will be a key factor."