New laws that take effect in 2018 will make it an offence to let out properties with the worst energy efficiency ratings. The legislation states that landlords must not let out properties with the two lowest energy efficiency ratings, F and G after April 2018.
So what does that mean for landlords. In my experience most properties tend to have an Energy Rating of E or above. However there are a small percentage of properties out there that do not. The government has been pushing for more energy efficient homes with several schemes in place to help home owners. With this particular scheme the energy efficient measures are paid for by a loan that is repaid via a supplement on the property’s electricity bill. The idea is that the loan repayments are cancelled out by the reduction in energy bills, so there is no net cost to either landlord or tenant.
However please bear in mind that the electricity payer has to agree to the deal so if the tenant pays the bill then the landlord has to request permission from them in order to take the deal and of course vice versa.
The Department of Energy & Climate Change has released a pdf document concerning the ‘Green Deal for residential landlords’ which you can access by the following link: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/294616/Res_Landlord.pdf
This is also something for buy to let investors to think about when they are purchasing investment properties.
If you would like to find out more then please contact me at Belvoir Maidenhead 01628 782577 or dominik.potworowski@belvoirlettings.com
