Chancellor, Rishi Sunak announced in his summer statement that the Government will be contributing at least two-thirds of the cost for improvement work to homeowners and landlords through vouchers issued as part of a Green Homes Grant Scheme.
For example, a homeowner installing cavity wall and floor insulation costing £4,000 would only pay about £1,320, with the Government contributing the remaining £2,680.
The objective? To make properties in England more energy efficient.
Who is eligible for the vouchers?
Both homeowners and landlords will be eligible, although new build domestic properties and non-domestic properties such as shops and offices are not.
There is a cap of up to £5,000 that will apply per household or £10,000 for low income households.
What is covered?
A list of energy saving measures that are supported by the scheme has been released. To be eligible for any financial support as part of the scheme, you will need to be installing at least one of the following "primary" improvements.
Primary improvements
· Solid wall, under-floor, cavity wall, loft, flat roof, room in room, or roof insulation
· Air or ground source heat pumps
· Solar thermal
If you already have these primary measures in place, you can instead use the vouchers for "top-ups" – for example, additional loft insulation so it reaches the recommended level – (but not to replace what you already have.)
To qualify for the secondary improvements, you must have one of the primary improvements carried out and the cost of the secondary improvements must not exceed that of the primary improvement(s).
For example, if you have received £1,000 towards cavity wall and roof insulation, you can only receive a maximum of £1,000 towards any secondary measures, such as double glazing or thermostats.
The secondary improvements are listed below:
Secondary improvements
· Double glazing, triple glazing, and secondary glazing
· Upgrading doors to energy efficient alternatives (replacement of doors fitted prior to 2002)
· Draught proofing
· Hot water tank/appliance tank thermostats/heating controls, as well as thermostatic radiator valves, smart heating controls, or zone controls
How do I apply?
The Government has confirmed that ‘later in August’ the Simple Energy Advice (SEA) service will help homeowners access advice and support on improving their home's energy efficiency and which measures they could be eligible for.
Then, from September, it will be possible to apply for the grant online, through the SEA website.
Once you have applied, your details will then be forwarded to accredited local suppliers. Only TradeMark registered or MCS certified tradespeople can carry out any works under the scheme.
When one of the suppliers has issued a quote, and the requested work has been approved, the Government will then issue the voucher.
Whilst the Government has confirmed that the Simple Energy Advice service will suggest "appropriate improvements" to homeowners, it says there's no requirement to use the measures it suggests, and owners won't need to have assessments of their homes.
When does the scheme end?
The Green Homes Grant scheme is due to end in March 2021. It will run for a total of six months, from September 2020 to March 2021.
Energy Performance Certificates
The NRLA points out that the Government has previously indicated that residential rental properties should be achieving an Energy Performance Certificate (EPC) rating of D or better by 2025. This should then be at a C or better by 2030. T
Ben Beadle, Chief Executive for the NRLA, has commented: “Energy efficient homes are clearly important to improving health, reducing household bills, and meeting the Government’s ambitions around carbon reduction. We welcome the clarity around what measures will be included as part of the Green Homes Grant scheme and encourage landlords to make use of this important initiative when it opens.”
So how does all this benefit Landlords?
This is the perfect opportunity for landlords to shift that E grade up a few notches. Having a rating of D or higher will attract more eco-friendly tenants and given that 42 per cent of tenants take into consideration eco-friendliness when choosing a new property, it’s a big advantage.
Landlords should be taking steps now to prepare for works that can be done with the grant funding that is being made available by the Government, as the Government shows no signs of slowing down with meeting their energy efficiency targets.
David Cox, chief executive, ARLA Propertymark, commented: “Since the withdrawal of LESA (Landlords Energy Saving Allowance), we’ve been calling for a simple grant scheme to help private homeowners and landlords make their properties more energy efficient. The announcement is a big step forward to ensure that they can take the necessary steps to do this and ultimately create a greener property sector in the UK.”
