As landlords across the country get accustomed to banking record rental earnings, a warning from the Royal Institute of Chartered Surveyors (RICS) may make them consider their future. They may well be incurring more bills than just buy to let property insurance in the near future if concerns by RICS are manifested.
Green Deal set to go live in 2012
The governments “Green Deal” initiative is due to be launched late next year and it will try and revolutionise the amount of CO2 emissions that emanate from the buildings in which we live. In a bid to cut emissions by a massive 80% householders and landlords across the country will be encouraged to update their properties by installing energy efficient systems.
Compliance date questioned
The Government is trying to get Big Business involved in providing loans to finance the scheme but property investors who typically have rented property insurance have been warned that they must bring the energy rating of tenanted properties they own to a minimum of B and E by 2018. RICS are concerned about the wording and have asked the Department of Energy and Climate Change (DECC) to clarify exactly what the time frame is. They point out that by 2018 could actually mean 2015.
Clarification of requirements needed
The Green Deal is certainly a worry for landlords. There are conflicting reports coming out of the DECC as to what landlords will have to do to comply. It has been confirmed that tenants will have the power to request landlords bring their properties up to standards set by the DECC but they are not sure whether they will qualify for up front loans as seems to be the case for private homeowners. The DECC have said that landlords who own a small number of properties will be fully informed in good time what exactly will be required from them, but it has not reassured some.
Landlords won’t be bullied
Irrespective of where the money will come from, a number of landlords have said if the cost is too prohibitive then they will evict tenants rather than become bankrupted by Government legislation. There is certainly more negotiating to be done with private landlords, as the last thing the Government needs right now is a shortage of housing when demand for rented accommodation is at its highest for many years.