The Green Deal and Private Rented Sector David Purdy Department of Energy Climate Change 6th October 2011

1. The Green Deal and Private Rented Sector David Purdy Department of Energy & Climate Change 6th October 2011

3. The Green Deal Process All Green Deals start with an assessment of the property Accredited assessor produces � fabric and behavioural assessment 3

4.  Benefits for the private rented sector The Green Deal will offer private landlords a real opportunity to invest in the energy efficiency of their properties at no up-front cost to themselves. Meanwhile tenants will enjoy lower fuel bills and warmer properties. � The Green Deal therefore overcomes the �split incentive� (whereby previously landlords paid but it was tenants who enjoyed the lower fuel bills). � This is a win, win, win situation � for the landlord, the tenant and the environment. The Green Deal will be widely marketed by commercial organisations and will raise awareness of the benefits amongst landlords and tenants alike. We will work with the sector and Green Deal Providers to ensure landlords are aware, and able to take advantage, of this opportunity. The Green Deal will offer private landlords a real opportunity to invest in the energy efficiency of their properties at no up-front cost to themselves. Meanwhile tenants will enjoy lower fuel bills and warmer properties. � The Green Deal therefore overcomes the �split incentive� (whereby previously landlords paid but it was tenants who enjoyed the lower fuel bills). � This is a win, win, win situation � for the landlord, the tenant and the environment. The Green Deal will be widely marketed by commercial organisations and will raise awareness of the benefits amongst landlords and tenants alike. We will work with the sector and Green Deal Providers to ensure landlords are aware, and able to take advantage, of this opportunity.

5.  Consents - Both owners and occupiers of a property will be able to take out a Green Deal, and they will need to obtain all necessary consents before any measures are installed. The express consent of the current energy bill payer will always be required � in the case of the private rented sector this will be a tenant rather than an owner. No one will be able to force the Green Deal charge onto a tenant�s energy bill without their consent. � Current tenants will need to give their express consent to allow repayments to be attached to their energy bill. � We expect landlords will take advantage of void periods to take out the Green Deal. We are requiring the Green Deal charge to be fully disclosed to any incoming tenants who will be responsible for paying the energy bills at the property. Consents - Both owners and occupiers of a property will be able to take out a Green Deal, and they will need to obtain all necessary consents before any measures are installed. The express consent of the current energy bill payer will always be required � in the case of the private rented sector this will be a tenant rather than an owner. No one will be able to force the Green Deal charge onto a tenant�s energy bill without their consent. � Current tenants will need to give their express consent to allow repayments to be attached to their energy bill. � We expect landlords will take advantage of void periods to take out the Green Deal. We are requiring the Green Deal charge to be fully disclosed to any incoming tenants who will be responsible for paying the energy bills at the property.

6. The Facts... The sector has some of the biggest improvements to make. � Previous initiatives, including taxation, subsidy, communication and voluntary approaches to improve these properties, had only limited impact. This is why we are seeking powers requiring local authorities to take steps to improve the energy efficiency of these properties. The sector has some of the biggest improvements to make. � Previous initiatives, including taxation, subsidy, communication and voluntary approaches to improve these properties, had only limited impact. This is why we are seeking powers requiring local authorities to take steps to improve the energy efficiency of these properties.

7. Regulation

8. Green Deal: Key stages Royal Assent Consultation Statutory Instruments Development phase Launch October 2012