SUSTAINABILITY
Is the Green Deal a good deal?
There’s a lot of chatter about how the Green Deal will impact on estate agents. Stephen O’Hara busts some myths.
T
he Green Deal was first announced by the coalition Government as part of the Energy Act, which came into force in
October 2011. The initiative has been hailed by the Government itself as a way of “revolutionising the energy efficiency of British properties”. It will introduce a new financing mechanism, allowing consumers and businesses to borrow the necessary funds to make energy efficient improvements to their properties. Unlike any other finance deal currently
available, under Green Deal finance, the consumer or business owner can opt to pay back the cost of the energy efficiency measures in instalments, through their energy bill – with the guiding principle being that the energy savings that you make as a result of the changes will eliminate any impact on your existing energy bills. While it has received a
mixed response from both the public and the industry, these new measures have the potential to significantly reduce the UK’s energy consumption and as a result, its carbon emissions; the first loans are to be available from October this year.
DEAL MEAN FOR ESTATE AGENTS? As an estate agent, you may feel that you will not be directly impacted by the Green Deal and its forthcoming introduction. However, once the Green Deal has been officially launched to the market, consumers are going to be increasingly aware of the scheme and are likely to have a number of questions about how it works and how it could help them. While the majority of those considering Green Deal finance will be existing home owners or tenants, it will also be a consideration for future buyers and tenants – could/should they access green finance for their future purchase? As a tenant, can they access the
36 AUGUST 2012 PROPERTYdrum SO WHAT DOES THE GREEN
To qualify for Green Deal finance, the proposed changes must meet the golden rule...’
Green Deal finance and how might this impact on their future fuel bills? What does this mean for the landlord? While as an agent you will not be
expected to provide any form of official advice and guidance, you may be a buyer or a tenant’s first port of call and it will be important that you have a fundamental understanding of the Green Deal and are able to point your potential buyers/tenants/ landlords in the direction of a suitable Green Deal provider, who will be able to
explore the options with them in more detail. In the longer term of course, as an agent,
you are likely to be selling or letting properties that have a Green Deal attached to them. If a homeowner or tenant takes up the Green financing deal, this loan stays with the property and not the buyer/ tenant, should they move on. This may spark questions from future buyers, as well as landlords and tenants as we see more properties with these Green Deal loans
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