On 1st October 2012 the Government officially launched the Green Deal across the UK. This initiative is designed to help business and home owners make ecological changes to their properties. With this initiative the homeowner installs new green technologies without paying any initial costs. The government will front this fee, which is then returned through savings in energy bills over a period of time.
For private landlords, the Green Deal overcomes the estranged concept that the Landlord is out of pocket for energy efficiency improvements that benefit the tenants. Through this new scheme, it will be the tenants who will repay the cost of the eco measures through savings made in their energy bills. Therefore, the Green Deal issues a scheme that provides a dual benefit for both landlords and tenants within the private rented sector: The Landlord does not have to pay for ecological changes to their property, and the tenant benefits from lower energy bills and the reduced risk of fuel poverty.
The Energy Act 2011 aims to ensure that the Green Deal and incentive of cost effective energy efficiency improvements are implemented throughout the private rented sector. The Energy Acts asserts that from April 2018 all private rented properties should comply with the minimum energy efficiency standard rating.
The Green Deal is an excellent scheme that over time will benefit society economically, culturally and environmentally. Landlords can implement ecological measures that will not only boost the energy efficiency rating for their property, but will also ensure their tenants are protected from fuel poverty, which has increased dramatically over recent years.
The only drawback to this scheme is the fact that the arrangement of ecological measures can be both time consuming and difficult to arrange with contractors and tenants. For Landlords who hold a portfolio of properties, it may be worth investing in the skills of property managers who specialise in ecological and carbon neutral developments.