Green makeovers improve appeal for tenants and cut costs

According to a recent poll the buy to let market has reached record highs with 41 per cent of landlords planning to increase rents during the next 12 months.  This is concerning news for many tenants who, as a result of the increased cost of living due to escalating fuel prices and the recent VAT rise, are already struggling to make their payments on time, pushing them into debt and leaving their landlords to pay the mortgage.

The government has stated that it may introduce new regulations to force landlords to improve the energy efficiency of their properties by 2015.  Installing energy efficient features is one of the simplest ways for a landlord to make a property more cost effective to run.  The Landlord’s Energy Saving Allowance currently offers financial support in the form of a tax allowance up to the value of £1,500 to help support landlords that choose to implement energy saving measures. 

Here energy saving website thinkinsulation.com offers advice for landlords and tenants wanting to green up their properties.

Insulate to accumulate
For a landlord installing insulation is one of the easiest and most effective ways to make a property more energy efficient.  What’s more, once installed insulation will last for the lifetime of the building, so it is a long term investment that will attract prospective buyers.  Installing cavity wall insulation will cost around £250 but will pay for itself fully after just two years, with cost-saving benefits evident year on year.

Energy Efficiency Performance Certificates
It is now a legal requirement for Energy Performance Certificates (EPC) to be presented to a new tenant at the start of their tenancy.  For a landlord it’s more important than ever before to be seen to contribute towards the governments green targets.  A property’s energy efficiency rating depends on how effective it is at using energy.  The most efficient homes will have an A rating and the least efficient a G rating.  By installing energy efficiency measures such as loft and cavity wall insulation landlords will reduce their properties CO2 emissions and improve the energy efficiency rating, making the property more attractive to a potential tenant or buyer.

Lower bills for tenants
Over three million properties in the private rented sector are rated G or F - the worst energy efficiency ratings, which is a cause for concern. Loft insulation can save money almost immediately slashing energy bills by approximately £145 each year+. Cavity wall insulation installation delivers savings of around £110 per year and solid wall insulation (both internal and external) saves up to £385 on annual energy bills.

Subsidised support
If a tenant meets certain criteria then there may be help available to landlords to fund the cost of installing insulation. The Landlords Energy Saving Allowance (LESA) allows landlords to apply for cavity wall or loft insulation for a property at either a reduced cost and in some circumstances, for example if the tenant is receiving benefits or is over 70 years old, free of charge. However, even if a landlord isn’t eligible for financial help, installing loft insulation is a simple DIY job that can be done in a day.  Costs start from £50 to top up existing insulation or insulate your loft from scratch depending on the size of your loft space. - Solid wall insulation requires a larger investment but the money will be made back through a significant the reduction in cost of energy bills.    

The Green Deal
The government’s Green Deal comes into effect from Autumn 2012. Landlords will be able to take advantage of the scheme so they don’t have to shoulder upfront costs when making energy efficient improvements such as installing insulation.  Instead costs will be paid back over time through a supplement added to a property’s reduced energy bills. 

Empowering tenants
The forthcoming Energy Bill will give tenants access to reasonable energy efficiency improvements such as fitting thermostats on boilers or installing loft and cavity or solid wall insulation.  The bill, which will come into effect from 2015 onwards, will also give local authorities powers to insist that landlords improve the worst performing homes.

Visit thinkinsulation.com for more information about energy saving in the home.