It seems that the ongoing initiative by government agencies to make our home environment ever ‘greener’ could impact on the pockets of some residential landlords.
As Chris Huhne, the minister for energy and climate change, lays down the concept of his ‘New Green Deal’ some landlords will be fearful of what lies in store for them.
The New Green Deal aims to increase the nation’s perception of energy consumption and to increase the insulation in all the UK’s 26 million homes. With the aid of big business the government is planning to induce homeowners across the country to take out ‘pay as you save loans’ to facilitate the conversion of properties into super insulated dwellings.
It is envisaged the loans could be up to as much as £10,000 and will allow householders to purchase energy saving products such as loft insulation, wall insulation, double glazing and different types of renewable energy. The government hopes that companies such as giant supermarket chains as well as national DIY stores will fund the project as the homeowner pays back the loan from money saved on fuel efficiency.
The one blot on the landscape for the scheme is properties owned by residential landlords. The architects of the plan envisage a poor take up by landlords because as they don’t actually pay the energy bills for the property then they will not be concerned about the fuel savings.
On the other hand a landlord with half a dozen properties will be faced with logistical problems sorting out loans for the properties and having the work carried out. It is a problem.
It is widely thought that the new scheme will include legislation to force landlords to install energy saving insulation at the behest of tenants or the local authority if they deem the property badly insulated.
Not surprisingly landlords who already have to comply with lots of compulsory legislation will be worried about anything more that is compulsory. Most landlords will be hoping the scheme will be more advisory where there is an option to purchase such as the case with landlord insurance. All landlords accept insurance cover is vital but know it is not a legal requirement.
Whatever the case, landlords will know their fate soon as the initiative should be in place inside the next five years.