The Residential Landlords Association is calling on the Government to make changes to Green Deal.
Currently, Green Deal proposals – due to come into force this autumn – stipulate that it is the utility users who will repay the loans via their energy bills.
But the RLA is concerned that this could deter future tenants, with tenants effectively feeling unhappy about having to pay for their landlord’s energy efficiency obligations.
Instead, the RLA wants landlords who upgrade their property using upfront Green Deal finance the choice to repay the loan directly.
The RLA has also called for the Landlord’s Energy Saving Allowance – an annual tax allowance – to be raised from £1,500 to £14,000. The allowance is due to be scrapped altogether in April 2015.
The calls come after revelations that more than one in ten landlords (14.5 per cent) say some or all properties in their portfolio fall into the bottom Energy Performance Certificate categories, with an F or G rating.
The finding, in a survey of 1,500 landlords by the Association of Residential Letting Agents, could mean a sharp reduction in the supply of rental properties.
From 2018, properties with low EPC ratings – likely to be anything below E – will be banned from the rental market.
The same ARLA survey also showed that more than one third of landlords (36 per cent) do not know the energy rating of their properties.
The RLA has been keeping a careful watch on Green Deal. Two years ago, the organisation created a technical group to study the implications of Green Deal proposals; and, with just months remaining before Green Deal is supposed to be implemented, the work of the RLA’s technical group continues