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Bad news for landlords as Green Deal fund is slashed

From Property Talk Live on July 24, 2014

Commenting on the reduction of Green Deal Home Improvement Funds (GDHIF) for solid wall insulation from £6000 to £4000, Richard Lambert, Chief Executive Officer at the National Landlords Association (NLA), said:

“Just as the Green Deal looks like it will finally succeed, the Government seems determined to sabotage its own policy.

“The NLA made a strong case to the Department for Energy and Climate Change (DECC) for the incentive payment for solid wall insulation projects to be set at a level that makes financial sense for the landlord to proceed with energy efficiency improvements to a property.

“We used data from the applications to our Green Deal service to justify our call for it to be set at or £6,000 and the success of the Green Deal Home Improvement Fund so far shows that this was the right level.

“Lowering the incentive for solid wall insulation to £4000 will increase the contribution that the landlord will have to make, and inevitably push more projects beyond the capacity or willingness of the landlord to fund them as a result. As the greatest proportion of solid wall properties are in the private rented sector this move therefore risks exempting a significant proportion of homes from meeting the energy efficiency targets set by DECC.

“The Government urgently needs to reconsider restoring the funding for solid wall insulation back to its previous level if it does not want to see the success of the GDHIF to date undermined.

“The NLA advise all landlords with a  draft Green Deal plan to act immediately in order to benefit from the previous funding incentives. Landlords have until midnight Thursday 24th July to claim cash back for external/internal wall insulation”.

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Source: Property Talk Live