Rental Sector Welcomes Green Deal

EAToday - December 2011

New incentives such as £150 to consumers who take up the Green Deal scheme are to be announced, with more sweeteners to be unveiled in a matter of weeks.

Energy secretary Chris Huhne says the impact of the Green Deal will be to drive down household fuel bills by 7percent, or £94, by 2020. He said: “Britains homes will be cheaper to heat and to light than if we did nothing in this parliament and in the longer term.”

The providers will be able to apply for an Energy Company Obligation subsidy where applicable to allow them to supply products that would not otherwise meet the golden rule on repayments. Instances where this will occur would typically be on older terrace properties with single brick skin construction that makes it impossible for cavity wall insulation in other words, many classic rental properties.

Energy Company Obligation funding will be open to private landlords whose tenants will be responsible for repaying the Green Deal costs through their utility bills but will exclude social housing.

David Salusbury, chairman of the National Landlords Association, said: The Green Deal represents a good opportunity for landlords and home owners to increase the energy efficiency of their properties. By enabling landlords to make necessary improvements at no direct cost, it overcomes the obstacles which have constrained previous initiatives, at the same time offering a real benefit to households.

A recent survey by the NLA found that over two-thirds of landlords would consider taking advantage of the Green Deal.It is our aim to support landlords through this process.

The Government has worked to engage with all stakeholders in order to come up with a proposal which we believe has the potential to work for the private rented sector. We look forward to continuing to work with government to bring about energy-saving improvements.”

Peter Bolton King, chief executive of the NAEA and ARLA, said: The NAEA and ARLA have been working closely with the Department for Energy and Climate Change on the detail of the Green Deal policy.

For the Green Deal to work it needs to be easy to implement and clear, so that tenants and prospective home buyers have the information they need when buying or renting a new home.

We look forward to examining the full detail of the consultation, and will be responding to the Government in due course.