Opinion Flat Living What the experts think
Bob Smytherman
Will theGreenDeal work for flat owners
The FPRAhAs long been concernedabout theissueofenergy efficiency for long- leaseholders living in blocks of flats,due to the complex nature ofmost leases. For very good reasonsmost leases
don’t allowfor improvements to be carried outaspartofthe service charge. Consensus for works to be donemust be sought fromresidents but this can stall improvements before they have started. To be cost-effective, the
improvements that need to be carried out to a block as awhole wouldinvolve very complex arrangements andnegotiations, especiallyinmixed tenure developments andthosewhere there are a number of parties to the lease. Inmyownblock forinstance, we have atripartiteleasewhere we have a freeholder andRMC as well as leaseholderswho vary from being reasonably well-off to those in dire fuel povertystrugglingto paytheir bills.Whoshouldfund works in such a situation? Flat owners need help inmaking
their blocks more energy efficient. The Government’s Green Deal – designedtodojustthat–isn’t likely to work forflat owners without providingincentives. On itsown the Green Deal doesn’t do this. It has been well researched and
modelled that inmediumto high rise buildings, the energy&carbon savings that could be seen in top floor flats aredifferenttothose on middle floors and are significantly different to those on the ground floor within thesamebuilding, evenwhen the samemeasures are offered. Therefore it would seem wrongtoinstallameasure forthe wholebuilding andthen, based on carbon savings, divide thecost up equallyamongthe number of
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dwellings in the block, even if the lease allows it. This is precisely the basisonwhich thegovernmentis trying to promote theGreen Deal to flat owners. Most blocks of flats in theprivate
sector are co-owned and a number of parties are involved with each building including freeholder- landlords, leaseholder-landlords, leaseholder-owner-occupiers andshort hold tenants, notto mentionresidentialmanagement companiesand lettingand managing agents too. In some circumstances thefreeholdercan even be a social landlord and the tenants private. Leases vary from flat to flat and block to block and thewhole sector struggles from alackofnationalregulation. The responsibilities of the various parties can also vary significantly, whichmakes improvements to these buildings very difficult to implement. Forall thesereasons,the FPRA
has been lobbying Government to treatblocksofflats/apartments in the private sector, especially those whereworks wouldneed to be done to common parts, as aseparate entity underthe GreenDealso that these issues are correctly and
What is the Green Deal?
TheEnergyAct 2011,whichcameintoforce in October, sets thelegislativeframework forthe GreenDealand newEnergy CompanyObligation (ECO). The Green Deal will enable private firmstooffer consumersenergyefficiency improvements to their homes and businesses at no upfront cost and allowrepayments, in instalments, through the savingsmade on energy bills. It promotesthe installationofthemost cost effectiveenergy efficiencymeasures through the ‘GoldenRule’whereby the savings should be equal to or greater than the charge on the energy bill. In parallel, the ECOwill provide additional support where Green Deal finance alone is not enough.
Energy savings on top floor flats are
different to those on middle floors and groundfloorwithin the samebuilding
The FPRAhas beenlobbying Government to treatblocks of flatsas aseparate entityunder theGreen Deal
fairly
addressed.Researchbyour legal advisorDrNickRoberts,published last year in the NewLawJournal,proposed afew simple changes to existing leaseholdregulationswhichwould make the situation easier for flat owners. Leaseholders of flats are used to
sharingexpensesequally through service charges and therefore any schemethat requires a detailed cost benefit analysis,distinguishingflats with one or two external walls or on thegroundortop floor are, in our view,doomedtofailure.Ibelieve that thekey barrier to delivery of the GreenDealtoblocksofflatsand other multi-occupancy properties will be consenttothe GreenDealchargefrom multiple bill payers (bothlessees and sub-tenants). Wesuggest that in order to
deliverenergyimprovementstothe structure and common parts of blocks of leaseholdflats, otherfunding programmes will be required such as theone inWest Sussex highlighted in the last edition of Flat Living (see autumnissue, News page 11).●
BoBsmyTheRmAn Chairman, TheFederationofPrivate Residents Associations
Tel0871 2003324 email
info@fpra.org.uk Webwww.fpra.org.uk
BobSmythermanwastheFPRArepresentative on theGreen DealConsentBarriersand RetaliatoryEvictionsWorkingGroupwhichwill be reportingback to both Energy Efficiency Minister GregoryBarkerMPand Housing Minister Grant ShappsMP.
Winter 2011 Flat Living
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