Landlords are still no closer to finding out just how the new “Green Deal” on properties will affect them, even though there was a debate about the matter in the House of Commons last week.
Plan will insulate millions of homes
In a debate on the Energy Bill last week MPs closely questioned Energy Ministers on the “Green Deal” scheme but got very little new knowledge. The scheme hopes to retrofit over 25 million homes with energy efficient improvements with the promise of low interest loans to ensure the work goes ahead. It is this point of the scheme that interests landlords and also the MPs who attended the debate last week.
Big business will provide funding
The Government hope that the creation of a Green Investment Bank funded by big business will provide the funds for homeowners to insulate their properties and then pay the low interest loans back, possibly through their energy bills. Landlords were unsure about the scheme when it was first mooted because it appeared that they may be forced into upgrading properties they can hardly afford the homeowner insurance for. The details are still very sketchy but it does seem that landlords would be entitled to the loans just the same as any other householder.
Landlords open to persuasion
Certainly a survey conducted by the National Landlords Association (NLA) suggests that more and more landlords are now eyeing the “Green Deal” as an opportunity more than a threat. The survey revealed that although only a quarter of those interviewed said they would definitely take advantage of the chance to upgrade their properties a further 50% said they would be investigating the possibilities the scheme offered. It seems that a lot of landlords are attracted to cheap loans in the same way as cheap landlord insurance. And why not, if the product is good and cut price why not take advantage?
Energy savings may cover cost
Of the 660 landlords surveyed just over 100 said they were not interested at all in the scheme, and it is true that until the nitty-gritty of the proposals are there for all to see then it is difficult to get too excited. However, many landlords will see the value in upgrading their properties at a time when the sector is doing well and there is also the prospect of cheaper energy bills once the insulation is fitted. In the end the upgrade could conceivably cost nothing.