A new lending fund has been introduced to landlords and tenants to improve the energy efficiency of their homes and properties.
The secretary of state for energy and climate change, Ed Davey MP, has confirmed the extension of Green Deal financing to the private rental sector in England, Wales and Scotland.
Taking out the Green Deal Payment Plan can help landlords bring the energy efficiency of their properties in line with forthcoming EU requirements, as the EU law will require landlords to ensure their properties rate E or higher on Energy Performance Certificate’s (EPC’s) by 2018.
Tenants will be given the right to request improvements to their properties 2016 as according to the new English housing survey published, 390,000 private rented homes have energy standards in band F & G.
A Green Deal Payment Plan offers the chance for both tenants and landlords to work together to improve their properties and homes, as the landlord will be able to improve the EPC of their property and the tenant will be protected from rising energy prices through new home improvements.
The extension to Green Deal to the private rented sector has been welcomes by the National Landlords Association and The Residential Landlords Association. However tenants will have to agree to any Green Deal Payment Plans on the property they rent through considerable consumer protection built into the scheme.
It is the first energy efficiency scheme to have been designed with an understanding of the private-rented sector, and it offers a way for landlords to make their properties into warmer homes for their tenants for little or no upfront cost.
The government has made clear that there will be consequences for those who do not voluntarily improve the energy efficiency of their properties by 2018.
A Green Deal Payment Plan is a loan but not like any others who give each consumer a different
APR for the same loan. Rates are universal and fixed and competitive at 6.96% interest with fixed charges, and over long periods of time for up to 25 years.
The Green Deal is governed by the ‘Golden Rule’ which means that the repayments by the electricity bill payer should be less or equal to the typical savings made by reducing energy usage. Tenants will be protected a lot more against rising utility bills because of the energy efficiency improvements to their home or flat and the home will also be more comfortable.