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National Landlords Association

National Landlords Association. The Green Deal. Overview. What is the Green Deal? How will it work? What is the catch? Why is the Green Deal important to landlords?. Green Deal Applications. Domestic Properties Owner Occupiers Private Rented Sector Social Housing Sector

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National Landlords Association

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  1. National Landlords Association The Green Deal

  2. Overview • What is the Green Deal? • How will it work? • What is the catch? • Why is the Green Deal important to landlords?

  3. Green Deal Applications • Domestic Properties • Owner Occupiers • Private Rented Sector • Social Housing Sector • Commercial Properties

  4. What is the Green Deal? • • One of the keynote parts of the Coalition Agreement in June 2010  Improve the energy efficiency of the UK Housing Stock •  To meet EU target of 20% CO2 reduction by 2020 • • The Green Deal will overcome the ‘Split Incentive’: •  The landlord pays for the improvements •  The tenant benefits from reduced fuel bills • • The Green Deal will require NO up-front cost to landlords for the improvements • • The Green Deal is expected to be rolled-out in late 2012

  5. How will the Green Deal work? • • Landlord approaches a Green Deal Supplier who will: •  Assess the property • Decide on the necessary improvements (in conjunction with the landlord) • Organise for improvements to be completed • Pays for the energy efficiency upgrades • Organises tenant repayments monthly via electricity • bill. (Finance packages up to 25 years)

  6. How will the Green Deal work? • • Low-cost improvements: •  Loft insulation • Cavity wall insulation • Floor insulation • Draught proofing • Water-pipe lagging

  7. How will the Green Deal work? • • Higher-cost improvements: • New Boilers • Double Glazing • Solid wall insulation (internal and external) • Solar panels, etc. • • NOTE: These may not be covered by Green Deal Finance but still available through other funding streams

  8. How will the Green Deal work (Cont.)? • • The improvement costs are then repaid by whoever pays the utility bills • • GOLDEN RULE: The cost of the new utility bills + the loan repayment • must be lower than if nothing had been done • • Additional ‘Energy Company Obligation’ (ECO) funding available if: •  Your tenants are on certain benefits •  You need Solid Wall Insulation • • NOTE: At present some of the finer details are not yet finalised •  Particularly how the ECO will work with the Green Deal •  The NLA sit on the Working Group which is constructing the secondary legislation

  9. After New Fuel Bill Golden Rule Explained Before Original Fuel Bill Saving Green Deal Improvement Repayment

  10. The role of the Energy Company Obligation • •There will be households for whom Green Deal finance is not suited • •ECO to integrate with the Green Deal, with a focus on: • hard to treat properties • and • vulnerable and poor households

  11. Energy Company Obligation & PRS • Green Deal Finance • •Measures fully meeting the Golden Rule • ECO/Green Deal Subsidy • •The next most cost-effective measures, combination of ECO subsidy and Green Deal finance • ECO Subsidy • •Measures providing affordable warmth to the vulnerable

  12. Green Deal - Practicalities • If tenant changes electricity supplier – loan moves automatically to new utility company • If property is sold then loan transfers to new owner • However, loan attached to electricity meter and will not be a charge on the property and should not affect mortgages • NLA working with DECC on issues such as HMO arrangements etc

  13. What is the catch? • • None. The Green Deal is available for landlords •  You are encouraged to use it for all your properties • • 2016 - tenants will be able to demand Green Deal improvements • Only Green Deal eligible works can be demanded • • 2018 – Ban on renting properties with EPC rating of ‘F’ or ‘G’

  14. Why is this important to landlords? • • Limited work required by the landlord • FREE to landlords and very little paperwork involved • • It will probably reduce voids •  Warm Tenant = Happy Tenant •  Happy Tenant = Stays in properties longer • • Maintains the fabric of your property •  Reduce problems with damp, mould and condensation  Stops pipes freezing in the winter

  15. Why is this important to landlords (cont.)? • • Most landlords say they can self-regulate •  No more legislation governing the PRS is necessary • • The Green Deal is the Government’s way of allowing landlords to prove this •  DECC want the Green Deal to be predominantly voluntary •  The Green Deal is NO COST and LIMITED PAPERWORK for landlords • • KEY - If landlords do not take up the Green Deal they have failed to demonstrate they can self-regulate •  More regulation of landlords is bound to follow

  16. Energy Saving Support pre Green Deal • Currently millions of pounds available until spring 2013 for insulation and energy saving initiatives in Private Rented Sector and Domestic Housing

  17. Grant/Subsidy Opportunities • Warm Front (England) • NEST (Wales) • Energy Saving Trust • Local Authorities (often with partners) • Utility Companies

  18. Warm Front (England only) • Initiative started June 2000 • Has assisted over 2.4m households in England • Funding available April 2012 to April 2013 - £100m • 2011/2012 budget not fully spent – Gov’t clawback!! • www.warmfront.co.uk • (leaflets available on information table)

  19. Warm Front – Support Programme • Applies to households (tenants) entitled to income related benefits e.g Pension Credit, ESA and JSA etc • Targeted at properties who have EPC rating of D or less • Grants up to £3,500 (£6000 in special cases) • Initiatives include…. • Loft Insulation Hot Water Tank Insulation • Draught Proofing Central Heating Installation • Cavity Wall Insulation Convert to glass front fire

  20. NEST (Wales only) • Partnership with British Gas • Fuel Poverty Support Scheme • (10% or more of household income spent on fuel) • For properties with EPC rating up to F/G • Means tested support scheme • Full home energy assessment carried out • www.nestwales.org.uk

  21. Energy Savings Trust • Complete “one stop shop” for advice and support on • energy saving activities from all sources. • Phoneline – 0300 123 1234 • www.energysavingtrust.org.uk

  22. Local Authorities • All LA’s are addressing fuel poverty, damp and cold • Issues for householders tenants and residents. • Some LA’s have their own insulation and energy saving • programmes in addition to national and regional initiatives. • If you don’t ask you don’t benefit!!

  23. Energy Suppliers and Utility Companies • Each have a responsibility for assisting with CO2 reduction • CERT (ends Dec 2012!) • Carbon Emissions Reduction Target • Annual expenditure target on advice and insulation grants • Agreed with DECC with strict underspend financial penalties • Most utility companies will pay for Cavity Wall and Loft Insulation (not means tested!) • More info – EST or CERT helpline 0800 512012

  24. NLA Accredited Supplier - DEAC • Dorset Energy Advice Centre • Initially for Dorset but now UK Wide Support • 15 years track record supplying energy saving advice • Can supply details of energy saving grants in your area(s) (25,000 grants referrals to date) • Special offers on non grant funded items for NLA members • Freefone number 0800 975 0166 • www.deac.co.uk

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