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Who pays the Green Deal Payments?

Posted on Monday, 2nd February 2015 by
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Green deal payments are paid through the energy provider and pay for energy efficient works carried out to the property at no upfront cost, such as cavity wall insulation. However, confusion and possible disputes arise when the property that benefits from the Green Deal Scheme is rented out. The big question is, who pays? The landlord or the Tenant (s)?

The property has the benefit of the works, which ultimately is the landlord’s to enjoy in that he does not have to pay for these works upfront and on any re-sale he can advertise the property with the benefit of such energy efficient works being carried out to the property. However, it is the tenant who is responsible for repaying the scheme during their time as tenants in the property, if they are responsible for paying the utility bills. This is because the tenant has the benefit  of lower energy costs as a result of the works; better cavity insulation means less heat escaping form the property.

Therefore the tenant will pay his utility bills in the usual way but the premium will include a proportion of paying back monies owed under the green deal scheme and if payments are not made the energy provider will pursue to debt in the usual way  and will not ask the landlord for the missed green deal payments.

However, if the property is empty, the landlord then resumes responsibility to repay the green deal scheme and pay for any utilities used during this period.

The moral of the story is, whoever is responsible for paying the utility bills is responsible for repaying the green deal scheme so if you are about to rent a property, please check if the property has had any works carried out under the scheme as your estimated energy premiums may be higher than expected. If you are landlord, you must disclose to the letting agent and potential tenants works have been carried out under the scheme and failure to do so could result in financial penalties.

If you would like to speak to us concerning your property please contact us to arrange a free initial 30 minute consultation.

The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer.  If you are interested in obtaining advice, please contact one of our solicitors who will be happy and able to advise you on your own particular circumstances.

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The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.

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Rebecca Gunn - Residential Conveyancing
Rebecca Gunn - Residential Conveyancing
Rebecca.Gunn@ehlsolicitors.co.uk 0116 402 6688
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