Green Deal Incentives And The New Private Rented Sector Regulations
It can be very lucrative to rent out your private property however there have been some big changes in the private rented sector recently. Two of these are the new regulations that have come into force as well as the government’s attempt to make properties more energy efficient and in line with their green policies.
Just what is the Green Deal and how do the new regulations affect tenants and landlords?
Green Deal To Promote Energy Efficiency
Living in an environmentally friendly and efficient world is the aim of most governments around the world at the minute and this is no different in the UK. The Green Deal that was introduced earlier this year by the British government is an eco-incentive that targets energy inefficient homes and buildings and tries to bring them in line with environmentally friendly efficiency.
What does this mean for tenants and landlords?
Rented properties can benefit from better insulation, draught-proofing, improve heating, double glazing and even solar panels to help increase their energy efficiency. The assessment can be initiated either from the landlord or tenant however both need each other’s permission to do so. In terms of finance, the Green Deal is more of a loan whereby the energy efficiency improvements are carried out and this is then paid off via the electricity bill in most cases.
For tenants, the great thing about this is that the repayments stay with the property; so if a tenant moves to another location the Green Deal repayments don’t follow them. If you are a landlord and decide to let your property online then having a Green Deal in place can be advantageous as it will mean both lower maintenance bills for yourself (reduced mould, condensation and chances of freezing pipes) as well as making your property attractive through Iamtheagent by having warmer properties with reduced bills.
Indeed, the Green Deal also has a cash back scheme whereby tenants or landlords who pay for the improvements can claim money back on the energy efficient measures that have been put in place.
New Private Rented Sector Regulations
Aside from the introduction of the Green Deal scheme, new PRS regulations have recently came into force that affect you if you are looking to let your property online.
Specifically it means that there are new rules in place to ensure that landlords keep a property to an acceptable standard in addition to the repayment of rent should a property be found to have hazards that the landlord has not addressed.
In fact, it also applies to the Green Deal scheme as well. When the initiative was brought in at the beginning of 2013, nearly 700,000 private rented properties had an EPC Band of F or G which is below industry standard. Partly the scheme is there to address this massive inefficiency however PRS rules mean that, come 2018, if you are a landlord who wants to use an online estate agency to find a tenant, you will be prevented from doing so unless energy efficient and green improvements are made.
We at I Am The Agent take energy efficiency and PRS regulations seriously and you can be sure that the properties for rent and sale that we list comply with all industry rules.
We are doing a half price deal on the £99 lettings package throughout Dec 13 'winter13' and FREE EPC's 'freeepc13' with all new sales packages at I Am The Agent until end of Jan 14.
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