Government handout of £10k per property for landlordsMake Text Bigger
As a landlord you can be forgiven for thinking that every bit of news from the government concerning the lettings sector is bad for the landlord – A new set of obligations which comes with the obligatory application process. Creating paper, jobs and VAT income for the government! Enough of my cynicism 🙂
So this article should bring you some cheer – and I will whisper this – A government policy that is based upon complete common sense!
It is the Green Deal and here’s how it works.
The government needs to reduce carbon emissions – it has something to do with saving the planet or such like. Anyway, as part of this, they’ve realised that our homes, particularly older ones, are not very energy efficient. They also realise that home owners and landlords will not spend their hard cash on energy saving measures because they take a long time to pay back by reduced fuel bills.
The Green Deal provides the following;
- Up to £10k of grants to install or replace boilers, central heating, windows, wall and loft insulation
- The grants are provided by private finance (eg B & Q etc). They get repaid by the energy companies who provide the house with gas/electric over 10+ years (so your tenant will pay for the works via their monthly gas/leccy bill 🙂 )
- To qualify, the cost of the works must be equal to, or less than the energy bill savings (The Golden Rule) – So your tenants will not be paying higher bills In reality they will be paying less due to the increased efficiency.
- There is no qualifying requirement for the house or tenant. Tenants can be private or DSS. You can even get the works done on your own home!
- Happy landlord – No cost and a better house, attracting better tenants with higher rents and increased house value
- Happy Tenant – An improved house which is more energy efficient
- Happy government – No expenditure to pay and it creates lots of work for tradesman, creating tax receipts and boosting the economy
- Happy finance provider who will be making money on the loan for the grant works
A win, win, win…. win.
So – When do you start! It is planned to role out in October 2012.
How do you apply?
You need to have a report done by a Green Deal Assessor to confirm qualifying works and to make the grant application.
Our Property Managers are all Green Deal Assessors which means every one of our landlords properties will be assessed and automatically submitted for the improvements.
NATIONAL PROPERTY GROUP
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