Green Deal: Social Landlords

The social housing sector is well-placed to play a central role in delivering the Green Deal due to a number of factors:

• The sector has experience of carrying out major home improvements, including energy efficiency works. 
• By managing significant numbers of properties,  it offers economies of scale. 
• They have a natural market in their own tenant base, and good local engagement and visibility.

The sector has responded positively to the prospect of the Green Deal and there are good examples of preparation work underway.  This includes Gentoo, a Housing Association in the North East and Greater Manchester where Local Authorities and Housing Associations are working collectively. 

What role can a Social Housing Provider play in the Green Deal?

• Social Housing Providers can play a number of different roles in delivering the Green Deal.  For example, they could become Green Deal Providers in their own right or work in partnership with others to offer economies of scale. They could also have an important advocacy role.
• The social housing sector could also help kick-start the market place.  For example, the sector has an existing and skilled construction workforce that is used to working in occupied homes.

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Who takes out the Green Deal – the landlord or the tenant?

• It could be either.  
• However, it is envisaged that tenants will not be able to attach a Green Deal to a rental property without the consent of their landlord.  In reverse, it is envisaged that the landlord will need to gain the consent of a sitting tenant in order to attach the Green Deal charge to their electricity bill.    
• We imagine that landlords may want to take advantage of void periods to take out the Green Deal.

Who pays the Green Deal charge in void periods?

• The landlord.  As responsibility for paying the energy bill reverts from the tenant to the landlord when a property becomes vacant, so too will the Green Deal charge.  

Will social landlords be liable if the tenant defaults?

• No.  The tenant, as the electricity bill payer, will be responsible - as is currently the case with energy bill defaults. 

Social Housing Sector has a large proportion of flats, what happens if you can’t get all tenants to consent? 

• We are working with interested parties to explore options for overcoming Green Deal consent barriers.

Will Social Housing Providers benefit from ECO?

• The relative ease of achieving economies of scale in social housing will mean that providers are well places to attract ECO funding towards improving their harder to treat stock