News
The Green Deal makes a return
Tuesday 24th January 2017
Private rented landlords are facing a tough year with the implementation of new laws, however there is a small silver lining amongst all these changes which is the return of Green Deal loans.
Currently, landlords are responsible for funding their own energy efficiency improvements if their properties don't meet the required standards of EPC ratings A to E. However, in April 2018, these low-rated properties face being pulled from the market as the law makes it illegal to let them and landlords will face either loss of income or high costs to upgrade.
But, landlords who are struggling to finance changes to their property to make them compliant could now benefit from a new round of Green Deal loans. The original Green Deal finance was withdrawn in July 2015, however loans will now be offered after the government sold the assets of the Green Deal Finance company to renewable energy investor Greenstone Finance.
The new deals plan to offer more competitive interest rates, and are easier to manage as loans are repaid as part of a customer's energy bill. This will usually have been reduced by the energy savings generated from the upgrade that the loans financed. It is being billed as a "pay-as-you-save" scheme.
The loan will remain with the property and will be paid for by the energy bill payer - in this case, most likely the tenant - so the payments will be made by the person most benefiting from the energy, and cost saving.