June 07, 2011
The Energy Bill has now had its second reading in Parliament This has resulted in several amendments including new proposals to make landlords responsible for meeting minimum energy efficiency standards in respect of their properties. Under the proposals, as of 2016, landlords must not refuse reasonable requests from their tenants to make improvements to the rented property to make it more energy efficient and from 2018, it will be illegal to rent or sell a property that does not meet a minimum energy efficiency rating. Landlords can choose to finance such improvements by subscribing to the Green Deal. This scheme is due to be introduced in the autumn of 2012 and will enable property owners to secure finance to make energy improvements. The loan is then re-paid through savings on energy bills. The outstanding debt will attach to the property so will be passed on to new owners, along with the benefits of the lower energy bills. Detailed guidance is due to be produced on the scheme in early 2012. Landlords may wish to consider obtaining Landlords Property Insurance if they do not already have this, in order to provide an alternative method of financing improvements to their properties, where they are not responsible for the energy bills. Further advice on leases and tenancy agreements can be obtained from a property solicitor.