July 2 2009

Media Release

Paying back insulation loans through rates could appeal to 21% of colder-home owners

Offering loans for insulation and heating, which can be repaid through rates, should appeal to one in five owners living in colder homes.

The New Zealand Business Council for Sustainable Development today welcomed moves by the Government and local authorities in Nelson, Hawkes Bay and Canterbury to offer residents the chance to pay off energy efficiency investments through rates.

The move complements the $323 million effort, to have 189,000 home owners install underfloor and ceiling insulation, and buy approved heaters, over the next four-years.

Banks are offering loans to bridge the gap between the $1300 Government grant for insulation and its full cost, about $3500 for a typical 100 sq m home.

The Business Council, which in November 2008 published findings of its two-year $300,000 research into the issue, says the lead being shown by the three local authorities should now be followed by the other 81 nationwide.

Business Council Chief Executive Peter Neilson says ShapeNZ nationwide research shows 71% of homeowners and 61% of rental property owners say their properties could be warmer and more comfortable - but 59% don't have the financial means to improve them.

However, 21% say they would take up a loan from their council to be paid back through their rates to do the work.

The research, covering 2,610 respondents between April 3 and 9, 2009, shows moves like those made by the three councils are "absolutely vital" to achieving action on the large scale needed to make sure the country's million inadequately insulated are upgraded.

Another move to help make it "bite" includes:

* Issuing a performance rating for each upgraded home, and other homes, so potential buyers and tenants can see how healthy it is and how much less it will cost to heat each year. This will reward the investment by increasing home values, reducing the time needed to let and sell, and increasing rents

"We are seeing a magnificent start. The rewards in cutting health and energy bills will be huge. We now need all local authorities to roll out loan offers in a bid to upgrade a million sick homes over the next decade," Mr Neilson says.

The Business Council will shortly resurvey homeowners on the likelihood of them going ahead with upgrades based on the grant and loan offers now being made.

ENDS

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