"THE GREEN DEAL" - DEAL OR NO DEAL FOR LANDLORDS?
26 July 2011
A new clause added to the original energy bill, passed in December 2010, will prevent landlords from renting out homes that fall into the worst two bands of energy efficiency - F and G.
This would mean that around 680,000 rented homes falling into this category must be refurbished or taken off the market by 2018, to fit into this new requirement.
The good news is that landlords can finance these refurbishments with loans taken out under the government's "green deal" scheme. Private firms will be able to offer consumers energy efficiency improvements to their properties at no upfront cost to consumers. Repayments will theoretically be offset for consumers by savings on energy bills, and the debts will be attached to properties rather than individual. A spokeswoman for the Department of Energy and Climate Change said, "Tenants will get a warmer home and cheaper bills, and the landlord gets the work done."
There has been criticism that the government is not moving fast enough with "green deal" - the flagship scheme to cut domestic carbon emissions. With the way things are going, landlords will still be able to continue renting these homes for six years, as the legislation will not come into force until at least next year.
The most recent developments on, July 13th 2011, show that the initiative will not make it onto the statue books for many months, as it has been side-lined by the government for now.
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