My Lords, I was wrestling with an amendment—it was going to be a probing amendment—to the effect that a landlord of private rented property should not be liable for the Green Deal if the property becomes vacant. I realise that this amendment might better be put in Chapter 2, when we are discussing the private rented sector, but it did not seem to fit there and seems to fit much better in Clause 5, which deals with the terms of the plan and in particular the persons liable to make any payment under the Green Deal.
When a private rented property becomes vacant between lettings, does liability for the Green Deal loan repayment fall to the landlord, bearing in mind that energy bills are likely to be minimal between lettings? It seems obvious that if the property is vacant, it would fall to the landlord to carry on paying any energy bills for the duration of the vacancy, even though they are minimal, but does he become liable for the Green Deal? And if so, does the repayment of the loan instalments get adjusted downwards, bearing in mind the very small energy bills while vacant and the golden rule? Secondly, what happens if the landlord cuts off the energy supply and reconnects when a new tenant arrives? The energy bill would be zero but there would still be interest to pay. Would this fall on the landlord and what about the golden rule here? Could this act as a disincentive to landlords to take up the Green Deal, or do the Government think it will act as an incentive to landlords to reoccupy the property more quickly, bearing in mind that the landlord may have to carry out repairs, maintenance and redecorations between lettings?
There is a provision in Clause 15(3)(d) of this Bill to suspend Green Deal payments. Does this suspension provision apply when a property becomes vacant, and, if so, what would this do to the repayments? Would it increase the term of the agreement and increase total liability due to interest accrued during the suspension? I ask all this because it does not seem to be at all clear as to how this would work and what the figures would be like for the landlord in the event of his property becoming vacant. I would be grateful for clarification.
Energy Bill [HL]
Proceeding contribution from
Earl Cathcart
(Conservative)
in the House of Lords on Wednesday, 19 January 2011.
It occurred during Debate on bills
and
Committee proceeding on Energy Bill [HL].
Type
Proceeding contribution
Reference
724 c82-3GC 
Session
2010-12
Chamber / Committee
House of Lords Grand Committee
Subjects
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Timestamp
2023-12-15 20:59:49 +0000
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