The Government has published details of the Green Homes Grant, announced at the Summer Economic Update on 8 July.
‘Green’ home improvements covered by Government voucher scheme
The scheme, which is at least a step towards the Government achieving its net-zero carbon emissions target, will provide vouchers worth up to £5,000 for most homeowners or £10,000 for households on low income to install energy-saving primary measures, including:
- Insulation: Solid wall, cavity wall, under-floor, loft, flat roof, a room in roof, park home.
- Low carbon heat: Air source heat pump, ground source heat pump, solar thermal.
Householders installing or upgrading primary measures, can then also use them towards secondary measures, including:
- Draught proofing
- Windows and doors: Double/triple glazing (where replacing single glazing), secondary glazing (in addition to single glazing), upgrading to energy-efficient doors (where replacing doors installed before 2002).
- Heating controls and insulation: appliance thermostats, hot water tank thermostats, hot water tank insulation, smart heating controls, zone controls, delayed start thermostat, thermostatic radiator valves.
Bear in mind though, that funding towards secondary measures is capped at the level of funding provided for primary measures.
The funding can be used for properties, including:
- All owner-occupied homes (including long-leaseholders, shared ownership)
- Landlords of private rented sector domestic properties
- Landlords of social sector domestic properties (including LA owned homes)
- Park home owners (for residential sites including Gypsy and Traveller sites)
However, new-build domestic properties and non-domestic properties are not eligible for the scheme.
Shortly, households in England will be able to access advice on improving energy efficiency through the Simple Energy Advice Service. The service will help homeowners to consider what improvements could be undertaken. Households will then be able to apply for vouchers to cover around two-thirds of the cost.
The vouchers, the first of which are expected to be issued from the end of September, will be provided alongside a list of approved TrustMark and MCS-registered tradespeople in the local area who can carry out the works required.
What does the ‘Green Homes Grant’ mean for landlords?
‘Going Green’ is something we hear a lot and it is high up on the Government’s agenda; consequently, now would appear to be the perfect opportunity for buy-to-let landlords who have been thinking about improving the energy-efficiency of a property to actually do something about it and before legislation forces them into a corner.
Improvements will not only be beneficial for the environment but could lead to lower costs for both landlord and tenant. More generally, the scheme should also serve to better the standards of housing.
How can George Hay help?
The funding available under the Green Homes Grant scheme will only be available for 12 months, from September. As a result, it is important that landlords considering works on any properties in their portfolio have, at least, a reasonable idea of what these will be and how the financial backing can be utilised.
If you have plans to improve the energy-efficiency of one or more of your properties, and you intend to apply for funding, we would encourage you to discuss this with your usual adviser. If you don’t currently have the support of an adviser, it could be worth seeking professional advice.
To speak to one of our property tax experts, covering Bedfordshire, Hertfordshire, Cambridgeshire and beyond, contact us today.
