Assetz® News - Keen to go green?

Keen to go green?

18th July 2008 |

Green is definitely the new black. And not just in the fashion world. Green is now officially cool as it represents the way forward in transport, business and finance as well as property and construction. 'Energy efficiency' and 'eco-friendly' are buzzwords flying around the boardrooms of large and small organisations alike, and conscientious citizens are keen to do their bit too. Landlords may think they have so far escaped this swathe of green sentiment, but not for much longer. A select committee of MPs has urged the government to encourage more bigwigs in the property market to help make homes and offices more efficient and less damaging to the environment.

The All Party Urban Development Group has released its latest report outlining eight recommendations to push property investors towards the eco-friendly side of life. Suggestions include the display of energy certificates in buildings, as well as calling on the government to lead by example. Landlords and tenants will be given clear advice on how to minimise energy waste while tighter regulations could mean many properties will need upgrading. The group also stated that incentives could be used to encourage property investors to take the recommendations seriously.

Chairman of the committee Clive Betts MP remarked: "Property is the natural focus for everyone as far as climate change is concerned. Buildings are where the biggest carbon savings can be made and we have been failing in this area. We need systemic and scale solutions. The empty rhetoric must end so that ministers and business leaders can both take real action." Much of the problem at the moment is that there is no clear green path for property developers to follow, Mr Betts said. "We need clear evidence on what will actually help and a strategy led by one voice within government. There is too much confusion across departments and many do not know where to turn," he added.

Many landlords are surely asking if it is worth installing eco-friendly features into rented properties - profit margins could be threatened. But, according to the National Landlords Association (NLA), there is help available for those keen to go green. In October the Landlord's Energy Saving Allowance will be available for investors that want to upgrade insulation or draft proofing in their properties. The fund will put £1,500 in the pockets of landlords with an environmental conscience. And such measures could improve tenant turnover, senior policy officer at the NLA Elizabeth Brogan said. Tenants could "start thinking about maybe moving on sooner than they might have done before" if their bills are too costly or they are simply not warm enough in their rented accommodation.

However, Mr Betts suggested that many investors may not make the switch to eco-friendly homes with the promise of better tenant turnover or cash incentives. He concluded: "We need to ensure people truly aspire to improve their green credentials and only then will we see a real step-change in behaviour."

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