Be Careful with Green Deal

Be Careful with Green Deal

Do tenants like green?

Be Careful with Green Deal

We are often asked about the 'Green Deal' and how it works now.  Generally speaking, improvements made to a property under the Green Deal will need to be paid back by whoever lives in a property.  Whilst tenants who are in a property can actually see the effect of reducing the cost of energy bills, the situation can be more confusing for those who move into a property after the changes have already been made - and this does not necessarily lead to happier tenants.

The way it mostly works is for the insulation to go in, and then the occupier of the building pays the reduced bill, PLUS a payback directly to the energy company.  So,  If their bill is originally say £80 a month, after green measures, it is reduced to £50 per month , BUT, they see a bill for £50 a month, then a surcharge of say £20 a month on top of this. 

The reality is that tenants end up paying for example £70 for the energy that would have cost them £80 so you might think they are happy. 

That is not the case.  Tenants generally think that because of something that has been done to the property by the Landlord, they are simply paying an additional £20 for something they didn't ask for and don't want. Why would they want to pay anything on top of the £50 of energy they are actually using?

This makes for unhappy tenants because they think they're being 'ripped off' by their landlords (even if they are saving money).  

The advice we have at the moment for our landlords is to steer clear of the Green Deal until the situation is more widely understood - however, we are of course very happy to carry out our ‘greener’ Landlord’s wishes!

Further information on the Green Deals available can be found on :

https://www.gov.uk/green-deal-energy-saving-measures/how-to-pay