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Uncertainty over timing of Green Deal upsetting landlords

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.

Chartered surveyors survey confirms letting market is booming

The outlook for property investors seeking to secure cheap property insurance on new additions to their portfolios is still rosy as the latest survey by the Royal Institute of Chartered Surveyors (RICS) suggests that house prices are still dropping throughout the country, with the exception of London.

Little interest in the sector

The survey covered the months of March to May and to all intents and purposes the prospects for the housing market came out decidedly gloomy. Although the majority of agents questioned reported little change, of those that did, most reported drop in house prices. Other disturbing facts emerging from the survey included many estate agents reporting little interest in the market from prospective buyers, a drop in the number of agreed sales and a lengthening of the time the average property was taking to sell.

No surprise in the findings

Of course the report can’t have came as a shock to many and at least the agents that did report a drop in house prices did qualify that by saying the drop was small. The report in fact supports the findings of one by produced by the Halifax Bank a couple of weeks ago that suggested the market would slowly stagnate for the rest of 2011. It seems as though the worrying inflation figures brought about by the escalating cost in food and fuel is scaring off many prospective buyers, and the lending requirements demanded by home loan providers is preventing the braver ones from seeing their intentions through.

Loan providers looking to rental market

Not at all bad news for the property investor! The bargains are still out there, unless of course you want to take your chance in the Capital, and loans to those looking for rented property insurance are becoming easier to get by the day. Loan companies appear to be targeting the commercial sector rather than the domestic sector now and the deals are getting better. A fact housing spokesman for RICS Ian Perry observed when summing up the latest report, noting that although the demand for purchasing property was depressed the rental market was booming.