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Chris Huhne Preparing To Splash The Cash

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I was just browsing the departement for energy and climate change website and came across a speech made by Huhne at the LSE yesterday. Because of the threat that climate change poses it's vital that we "future proof" our homes, but naughty landlords are digging their heels in so the government see it as their job to give them a bit of encouragement via the Green Deal:

Over the last two years steady progress has been made, with two million loft and cavity wall insulations installed.

But Labour did not have a vision of the comprehensive refit we need. It failed to improve the private rented sector, which benefited from less than 2 per cent of these installations. Privately rented homes have far too many leaky lofts and icy drafts. Over half a million have the lowest energy rating. The Green Deal will change this.

We should no longer condemn those who rent privately to higher bills and discomfort. Landlords will face no upfront cost, and will benefit from an improved property – just like other homeowners. By 2015 every tenant should be able to be as warm in their own home as anyone else.

This is a win, win, win situation – for the landlord, the tenant, and the climate.

My link

This is a win win for landlords. They get the taxpayer to subsidise their insulation costs and once their investments are upgraded they're able to charge tenants higher rent.

Yet more plundering of the national coffers for those that have all but bankrupted this country.

Edited by Chef

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I don't, I have investments, actually – and not nine, it's seven. I have investments in five homes for rent, which is basically my pension fund from my time in the City; and we have two homes we actually use, which is one in Eastleigh and one in London.

Interview in the Independent

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It depends on what he means by "Landlords will face no upfront cost".

Apparently

"Under the Green Deal consumers will be able to employ accredited installers to make energy-saving improvements, such as loft and wall insulation, to homes and pay back the cost in installments as their energy bills begin to drop.

The scheme breaks new ground with its ‘pay as you save’ model for repayments, which will be deducted from energy bills and be limited to the savings that are being made from the installed energy-efficiency measures."

(this from the Which? website)

So, as I see it, whoever pays the energy bills will also pay off the cost of the energy saving measures.

In all the places I ever rented, it was me paying the bills.

If that's still the case in most private rented accomodation, it'll be the tenants who pay for it. Certainly win-win for the landlord, then.

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relax, where demand is limited by ability to pay (overall demand for housing that is), then rental costs will simply fall by the same amount as it costs to pay for this stuff

in the same way, land costs will fall by the capital amount equivalent to fitting out a newly built home to the same degree

I think it will be cost-neutral to landlords and tennants, but cost-negative to taxpayers

I wonder which companies tho will profiteer from it?

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The scheme breaks new ground with its ‘pay as you save’ model for repayments, which will be deducted from energy bills and be limited to the savings that are being made from the installed energy-efficiency measures."

{Turns heating up so bill stays same}

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I was just browsing the departement for energy and climate.......

<snip>

Discussed here yesterday: http://www.housepricecrash.co.uk/forum/index.php?showtopic=153912

If I understand this right, the landlord gets the insulation done at no upfront cost to them and a 'charge' is made against the property with regards to which utility companies they use for their energy.

The upshot of this seems to be that in future when you rent a place to live, you'll automatically be tied in to the participating energy provider and no longer able to shop around for the best deal.

What was that again....??? "This is a win, win, win situation – for the landlord, the tenant, and the climate."

:lol:

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Discussed here yesterday: http://www.housepric...howtopic=153912

If I understand this right, the landlord gets the insulation done at no upfront cost to them and a 'charge' is made against the property with regards to which utility companies they use for their energy.

The upshot of this seems to be that in future when you rent a place to live, you'll automatically be tied in to the participating energy provider and no longer able to shop around for the best deal.

What was that again....??? "This is a win, win, win situation – for the landlord, the tenant, and the climate."

:lol:

don't homeowners get it for free also?

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Discussed here yesterday: http://www.housepricecrash.co.uk/forum/index.php?showtopic=153912

If I understand this right, the landlord gets the insulation done at no upfront cost to them and a 'charge' is made against the property with regards to which utility companies they use for their energy.

The upshot of this seems to be that in future when you rent a place to live, you'll automatically be tied in to the participating energy provider and no longer able to shop around for the best deal.

What was that again....??? "This is a win, win, win situation – for the landlord, the tenant, and the climate."

:lol:

Better ask Chris Huhne about this now.

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It is the economics of the madhouse. When we bought our place in 1994, it had chuff all loft insulation, single glazed windows and a very old boiler. We now have loft insulation, lots of expensive double glazed windows (conservation area) and a stupid condensing boiler that regularly breaks down. Our gas bill in kW equivalent is pretty much identical. The house is about the same temperature, slightly more comfortable as the draughts coming off the windows have gone.

Any suggestion that people will see a material reduction in their power bills seems to be optimistic. If I used the standard savings suggested by the calculators, British Gas would be paying me rather than the other way round.

So of course, these scheme will see "accredited" (= extra margin) contractors doing the work, and it will probably cost a few grand to insulate and double glaze the average house. How on earth will this be financed by energy bills....unless of course they are going to double.

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Discussed here yesterday: http://www.housepricecrash.co.uk/forum/index.php?showtopic=153912

If I understand this right, the landlord gets the insulation done at no upfront cost to them and a 'charge' is made against the property with regards to which utility companies they use for their energy.

The upshot of this seems to be that in future when you rent a place to live, you'll automatically be tied in to the participating energy provider and no longer able to shop around for the best deal.

What was that again....??? "This is a win, win, win situation – for the landlord, the tenant, and the climate."

:lol:

Hopefully that wont be how it works as this will scupper OOs as well as tenants.

If it is done properly the charge will be against the house and the debt will move from supplier to supplier if you want to change.

However, the requirement to use "authorised" installers will probably kill it as history has shown that when HMG authorise people to work on a government scheme they routinely charge 50-100% more than a local supplier.

tim

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It is the economics of the madhouse. When we bought our place in 1994, it had chuff all loft insulation, single glazed windows and a very old boiler. We now have loft insulation, lots of expensive double glazed windows (conservation area) and a stupid condensing boiler that regularly breaks down. Our gas bill in kW equivalent is pretty much identical. The house is about the same temperature, slightly more comfortable as the draughts coming off the windows have gone.

Any suggestion that people will see a material reduction in their power bills seems to be optimistic. If I used the standard savings suggested by the calculators, British Gas would be paying me rather than the other way round.

So of course, these scheme will see "accredited" (= extra margin) contractors doing the work, and it will probably cost a few grand to insulate and double glaze the average house. How on earth will this be financed by energy bills....unless of course they are going to double.

Double Glazing has the worst pay back of any of the "insulation" methods. It is not one that is cost effective unless the windows need replacing anyway.

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  • 259 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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