On Thursday 23rd July 2015 the Secretary of State for Energy and Climate, Amber Rudd, announced the end of funding to the Green Deal Finance Company effectively ending the Green Deal. With the Landlord Energy Saving Allowance (LESA) scrapped, an adverse EU VAT ruling on energy saving materials and works, and now the Green Deal being axed the RLA questions what is next for landlords who need to improve energy efficiency of their properties.
‘Low take-up’ was cited as a major reason for the ending of the scheme. This is despite aspects of the Green Deal Home Improvement Fund (GDHIF) being routinely exhausted.
The stop in funding will prevent any new loans from going forward, however existing deals and loans in progress will still be honoured.
All properties within the Private Rented Sector (PRS) must be up to at least an ‘E’ EPC rating by 1st April 2018 under new legislation but this date could come forward to 2016 so waiting is not an option. Energy efficiency improvements can also help landlords and tenants save on energy bills.
However, it is a concern that the Government has no current plans to replace Green Deal schemes. The RLA will seek clarity from Government as to what level of support landlords can expect.