13:01 PM, 30th October 2012, About 11 years ago 10
Mark and I have worked together since 2003 and have very rarely fundamentally disagreed on a subject, but the Green Deal has split us down the middle with myself being very pro and Mark against. I am writing this whilst sat at home having cavity wall and loft insulation added for free!
I am aware that under the Green Deal in January this will no longer be available as a free subsidy, but in the current economic climate I am not surprised. However I will be planning on taking advantage of the interest free loans available and having a new more efficient boiler replacement for my main residence.
From my perspective I can either spend nothing and keep an inefficient boiler that will eventually break down and be irreparable at some point, or I can spend no upfront cash and use the fuel savings of a brand new boiler replaced under the green deal to pay for an interest free loan added to my fuel bill. Thus I have a new boiler that has not cost me a thing and will eventually be paid off after a number of years by its own savings. Sounds like a no-brainer to me and should also generate new jobs and technology into industry, which is all good for the economy.
Mark will however tell you that I could have got the insulation for free under the current subsidies after January, but the system is being changed because the energy companies have been very poor at promoting it. The Government will be using our tax money on advertising the new Green Deal instead of directly paying for energy saving measures, which is a complete waste of money.
I counter with the fact that I could not have got a new boiler with a free subsidy before, so an interest free loan still sounds like a good idea to me and government wastes money all the time.
The main difference between Mark and myself is that as a landlord he is more concerned with his rented properties. He sees the Green deal as a barrier to being able to let a property with a loan adding to the cost of fuel bills putting off a prospective tenant that could rent next-door where the bills will be cheaper.
I counter with Mark’s own logic for BTL “always use someone else’s money to invest where at all possible to maximise your return on capital and reduce risk by staying liquid”.
If you need a new boiler in a rented property why pay £2,500 plus from your own liquidity when you can have an interest free loan? You can always reduce the rent by the same amount as the loan to attract tenants and have a property that will be more attractive to rent.
I personally don’t see the down sides as an end user, but I really want to know what everyone else thinks for a more informed less one sided opinion. Please add your thoughts in the comments section below the enquiry form.
In the meantime, if any of your properties don’t have cavity wall insulation or modern loft installation then you should do as I have done and take advantage of the FREE grant money that’s available now. For further details simply complete the form below.
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