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The scheme works with a visit by a Green Deal Assessor who makes a list of recommended improvements to your buy-to-let property (you don't have to accept any or all of them). The Green Deal Assessor then quotes for the cost of the energy improvement works. Once you have chosen a Green Deal Provider they will provide the landlord with a Green Deal Plan and the Provider will arrange for a Green Deal installer to do the work. The costs of the Green Deal energy improvements rather than being paid for up front come in the form of a fixed interest loan where the costs are added to the electricity bill for the home.
Should Landlords Embrace the Green Deal?
All the above sounds great. For a landlord you get your property improved at no upfront cost and the benefits come to the tenant in the form of a warmer more energy efficient buy-to-let property. In theory the improvements will be cost neutral to the tenant as the extra costs of the loan are offset by cheaper bills. However, how true will this be? What happens if the tenant lets for 6 months during the summer. They will be paying the costs of the loan but given they probably won't be using the heating anyway there will be little or no savings in heating costs. Will tenants elect for a property without a Green Deal surcharge. What happens if the property is empty during a void period? Then the loan cost falls to landlords. There are many implications for a landlord and tenant presented by the Green Deal and we will be looking at them and landlords experiences over the coming months.
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1 comment:
hi there, i am a landlord and also in the heating game. it does seem the green deal is not all its cracked up to be. it ties in the property to a difficult to understand credit/loan situation that may be more expensive than getting a loan and choosing the trade and work yourself.its hard enough to work out if your getting a good deal with your gas and electric without factoring the green deal loan and remaining payments etc. if you sell the property whoever takes it on has to be happy to take on the deal as well . i know i wouldnt and nor would my customers. we shall see
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