Green Deal not such good news for landlords
- 8th December 2010
- Landlord Property News
New Green Deal to give tenants the right for energy efficient rentals or challenge landlord in court.
Chris Huhne, climate change secretary, has announced the new Green Deal will also apply to the private rented sector.
The guidelines state that by 2015 every house should be energy efficient, and that the government "will look to take powers to ensure that ... any tenant who asks for energy efficiency improvements cannot be refused".
Although Mr. Huhne claims it to be a "win, win, win situation" (landlord, tenant and climate), these guidelines look to be very costly for landlords.
Owner occupiers will receive grants to carry out such improvements which will be repaid via their energy bills. However it is unclear, if landlords get similar grants, how these will be paid off, as in most cases it is tenants who foot the energy bills.
Landlords are already being taken to court by tenants in disputes over excessive energy bills and for not providing an Energy Performance Certificate (as required by law).
Managing director of Let Insurance Services, Michael Portman, says, "Challenging a tenant in court for withholding rent for energy efficient reasons could be expensive.
Landlords should not skimp on repairs, energy saving measures or EPCS. Now is the time to take stock of the energy efficiency performance of rental property while the market is buoyant.
Landlords should invest accordingly for their own peace of mind. Failure to do so could have an effect on insurance premiums too."
Stephen Ludlow advises landlords to not be complacent because of the current red hot rental market:
"At the moment it's a landlord's market, where there are fewer properties for tenants. When and if this situations equalises, those places with good energy certificates will be more attractive to tenants."
Good energy certificates will be more attractive to tenants...
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