The Green Deal is a brand new initiative implemented by the Government to facilitate the fitting of energy saving measures to millions of homes across the UK. It has been designed to revolutionise the energy efficiency of properties throughout the UK.
Under the scheme, households will be able to improve the energy efficiency of their properties by taking out loans to have their properties made more energy efficient. Householders would pay back the loan over the course of 25 years through additional charges to their energy bills. The savings on bills would be more than the additional cost. So for example if you were a landlord renting your property to tenants, any improvements would be paid by the tenant through their heating bills and the tenant would save money since the improvement should reduce their bills beyond the actual cost.
Should people move from their home, the charge will remain with the property. And because the finance will be tied to the energy meter rather than the householder, it means that credit ratings won’t be an issue when it comes to qualifying.
A framework will be established which will allow private firms to offer consumers energy efficiency improvements including energy efficient boiler replacement, cavity wall insulation, double glazing and loft insulation to their homes at no upfront cost. Private companies will be drafted in to finance the up-front cost of the installation and will recoup their cost through the savings made by the resulting reduction in household energy bills. A proportion of that saving will also be passed on to the house holder.
The Green Deal is expected to be launched in October 2012 so if you wish to find out more……….we will be hosting a property seminar on Wednesday 29th August at 6.30pm at the Angel View Inn, Low Eighton, Gateshead, NE9 7UB where Stuart Gibson from British Eco will be providing further information on how landlords can benefit from this new initiative.