New lending fund gives green light for rental sector improvements
Published: 07 March, 2014
Landlords and tenants are now able to access a new lending fund to improve the energy efficiency of their homes and properties.
Speaking at the Ecobuild 2014 conference this week, Secretary of State for Energy & Climate Change Ed Davey confirmed the extension of Green Deal financing to the private rented sector in England, Wales and Scotland.
Being able to take out a Green Deal Payment Plan can help landlords bring the energy efficiency of their properties in line with forthcoming EU requirements. EU law will require landlords to make their properties rate E or higher on Energy Performance Certificates by 2018, and tenants will have the right to request improvements to their properties from 2016. Tenants will also have to agree to any Green Deal Payment Plans on the property they rent through considerable consumer protection built into the scheme.
Mark Bayley, chief executive of the Green Deal Finance Company (GDFC), said: “Britain is moving towards a rental culture. Landlords and tenants now have a chance to make homes more energy efficient for minimal upfront cost. A Green Deal Payment Plan offers the chance for both to work together to improve their properties and homes – the landlord will be able to improve the EPC of their property and the tenant will be protected from rising energy prices through new home improvements.”
Mr Bayley went on to add: “Green Deal Payment Plans are a win-win for tenants and landlords who want the same thing: a more energy-efficient property and protection against rising energy prices. The void that sometimes occurs between old and new tenants is a perfect time to carry out these improvements.”
The GDFC is currently processing c£ 6.9m in payment plan applications for homeowners.