Green Deal
- The Green Deal is a government scheme aimed at encouraging energy conservation.
- It was not particularly successful with really only EPCs surviving.
- This is what The Green Deal purported to offer but somehow didn't:
- In relation to letting property, this became a serious prospect with the introduction of Energy Performance Certificates, EPCs.
- The idea is to enable inefficient energy systems to be improved.
- Until recently, with the exception of perhaps double and even triple glazing, the challenge was in motivating investment towards modern efficient boilers, loft and cavity and solid-wall insulation, etc. with few willing to fork out due to disproportionally long payback periods.
- Not any more! Government grants enable e.g. landlords to borrow in a scheme linked to energy consumption. This means that repayments will never exceed the actual cost of the energy that would have been consumed, prior to improvements being carried out.
- Deterrents introduced from 2018 mean that a property with an EPC rated F or G cannot be let - it will become an offence to rent such a prohibited property. By 2025 the minimum rating for new tenancies is set at 'C' and by 2028 for all tenancies.
- This is a double motivation to save the planet by reducing our carbon footprint responsible for global warming and polar icecap melting.
- A further motivation means tenants will be able to demand that landlords reasonably improve home energy efficiency, as this will save tenants money. Landlords will be unable to refuse any reasonable requests to improve.
- In short, it is a win-win situation for all concerned, allowing no excuse for lethargic landlords to put off energy conservation any longer.
- Is it a good idea? It is a no brainier! For no upfront cost a new boiler can be installed and the loan repaid with the saving. What's not to like? Well... mortgage lenders must agree, and there could be complications when selling what is effectively a debt to the buyer.
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Published: 8 November 2013 Last Updated: 4 December 2021