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Friday, November 05, 2010

Landlords face carrot and stick

Following on from my recent post about Chris Huhne the energy and climate change Secretary plans to compel landlords to improve energy efficiency within their properties.  It appears that there will be no upfront costs to the landlord.  Instead the government plans to provide a landlord with a loan to complete the works.  This loan is then to be repaid by a levy on the tenants energy bill.

This is the carrot.  The stick is that landlords who fail to take up the governments generous offer could be fined.

I'm supported of any attempt to conserve energy and make homes more efficient.

My concerns are that the devil is in the detail.  For example many tenants may not want to endure the upheaval involved in the retrofit of energy saving measures such as additional insulation and double glazing.  What happens where tenants don't want the work done when over officious councils have identified the need?  Would the landlord get caught in the middle and fined!

I also can't see how the levy on an energy bill will work, who supervises it?

In principle, I support the move but it does worry me that politicians and policy makers will not strike the right balance between the vision and the practicalities. Who can forget about the debacle over the HIPS and EPCs?

The Energy Security and Green Economy Bill will go before Parliament in November 2010. It is unlikely to become law before 2012


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3 comments:

Unknown said...

This sounds like it is all to do with The Green Deal. The upfront finance required to carry out energy efficiency improvements will be attached to the building's energy meter. The bill payer will pay back the finance over time with the repayments being less than the savings being made. There are zero upfront costs to the householder/landlord and payments are only made when savings are being made.

For example - If the energy bill was £100 and with insulation, new windows etc is reduced to £60, the bill payer would pay £80 - £60 towards energy usage and £20 towards the finance for getting the insulation etc. The bill payer is still saving £20/month.

I hope this helps to clarify it a little.

Jo
JCB Property Management Services

grag25@hotmail.com said...

Nothing said by Huhne about improving the EPC software.Its an extremely blunt weapon designed to take no account of real existing haeting bills. Further there are no checks on accuracy and no Appeals procedure against faulty results.

Grag25

Anonymous said...

What about those of us who own flats in blocks where owner-occupiers are in the majority? The EPC for my flat says that installing cavity wall insulation and replacing the double-glazing would lift the rating, but how likely is it that the owner-occupiers will agree to having all the windows in the block changed and cavity wall insulation installed just so that the few letting units are up to par? I foresee a mass dumping on the market of all sub E-rated flats as soon as the legislation is passed, which could have dire consequences for the supply of affordable rented accommodation as well as the housing market as a whole.