Council offers financial help to private landlords needing to comply with tighter energy performance regulations
Private landlords in East Devon who own properties that have an F-G Energy Performance rating and who have tenants moving in/existing tenancies being renewed, need to act now to improve the energy performance of their properties if they are to comply with Government regulations. Because from April 2018, the majority of rented properties will need to have an Energy Performance certificate rated A-E.
The private rented sector has the poorest level of energy efficiency in the UK, so East Devon District Council is offering a helping hand to landlords who might struggle financially to make energy efficiency improvements to their rental properties.
The council is keen to support landlords to ensure no one falls foul of the proposed new regulations and a council subsidised loan is one option for landlords considering how to fund energy efficiency works.
East Devon works in partnership with Wessex Resolutions CIC, a not for profit, local lending organisation, which manages the loan scheme on behalf of the council. The partnership has been running for over ten years across the South West. By providing loans, the council is ensuring that funds for homeowners and landlords are sustainable. This means that every repayment goes back into the council pot to lend to homeowners into the future.
Landlords looking to take out a loan, should be aware that the council loans have a fixed interest rate - typically 4.2% APR - and are subject to status. Missing future payments can affect a person’s credit rating and ability to obtain credit in the future. Wessex Resolutions CIC may insist on loans being protected at the Land Registry by a Title Restriction.
Cllr Jill Elson, East Devon’s portfolio holder for homes and sustainable communities, said:
The private rented sector has significantly high levels of properties, which are considered to be in poor condition - 30% of the private rented stock across the South West is considered to be of a poor standard. Lack of heating or inadequate heating and insulation contributes to poor living conditions, which can affect the health and wellbeing of tenants.
This financial assistance through Wessex Resolutions provides support to landlords to improve their properties so that they can continue to rent their properties into the future, knowing that that their properties will be providing safe and healthy homes. The recycling of these funds is such a great benefit to the East Devon community and in particular those people in need.
Andrew Wallace, Managing Director at Wessex Resolutions said:
Our landlord loans are proving a popular way for landlords to finance repairs or energy efficiency improvements to their rental properties, particularly in the rural areas that we serve where keeping properties maintained and running efficiently is particularly challenging. Our team of advisers work closely with landlords and our council partners to create flexible financial solutions to the issue of funding repairs.