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All properties are required to have an energy performance rating of at least “E” by 2018

12 June 2014


 June 12, 2014
Category: Landlords

The government has mandated that by April 2018, all properties are required to have an energy performance rating of at least “E.” This means that it will be illegal for landlords to let any property with an energy rating of “F” or “G.” While most homes are above this rating, some are not and have to be improved. These ratings are completed at the time of an Energy Performance Certificate (EPC) and can be improved by taking several of the energy saving measures provided by the EPC document.

The government provides a number of subsidies

For 2018 the minimum energy rating is entirely possible by undertaking energy efficiency retrofit measures. The government provides a number of subsidies to support the retrofit, as well as loan packages such as the Green Deal. The Green Deal was established to assist utility bill payers (landlords and/or tenants) in making the adjustments necessary to improve their property. Through this programme the costs of energy efficient improvements will be funded through a loan partially (or fully) paid back through the monthly electricity bill.
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The Green Deal in brief

The Green Deal is a loan package to support property energy efficiency retrofit initiatives. Unlike conventional loan deals, the Green Deal has the following:

  • No or small amount capital is required to get the retrofit job done
  • Gold rule states: the repayment should not exceed the estimated saving could have achieved through the energy upgrade
  • The repayment is attached to the utility bill
  • The beneficiary of the energy upgrade, or the bill payers are liable for the repayment
  • The repayment period should be the life of the upgrade appliances or up to 25 years

The Green Deal is one of the methods available to meet the Government’s’ requirement for all rental properties to achieve a SAP rating of E and above. All properties that have an Energy Performance Certificate (EPC) will have a list of recommendations for a potential energy upgrade. Any EPC that has been issued after 2013 will include a list of Green Deal suitability recommendations.

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