As part of his Summer Economic Update, the Chancellor announced a Green Homes Grant scheme that would give homeowners and residential landlords a voucher towards the cost of making energy efficient improvements, worth between £5,000 and £10,000.
Improvements such as insulating a property, installing low-carbon heating, or having double glazing fitted are within the remit but, under the previous rules, the voucher must have been redeemed and works completed by 31 March 2021.
However, following concerns that there was a lack of Trustmark qualified tradespeople available to complete projects ahead of the deadline, the Government has now confirmed a 12-month extension to the scheme.
Consequently, landlords and homeowners have until 31 March 2022 to redeem the voucher, which is intended to cover labour, materials and VAT costs, and complete improvements to a property.
Despite eligible parties having more time to apply, there is no more funding available than there was previously and so those wanting to take advantage of the scheme should investigate doing so sooner, rather than later.
Partner Richard Dilley says: “Now is a good time for buy-to-let landlords who have been thinking about improving the energy-efficiency of a property to take action voluntarily, before government legislation forces them into a corner at some point in the future.
“With the deadline now having been extended, landlords and homeowners should benefit from having more time to properly consider what works will benefit their property the most and to identify the right person to take on the project. Tradespeople will perhaps breathe a sigh of relief, since they’ll have a longer period of time over which to spread their workload and a better chance of being able to see projects through to completion before the end of March 2022.
“As with all the other pots of government funding that have been made available during the pandemic, it will run dry and so those wanting to participate in the scheme should already have an idea of the works they wish to pursue and how the financial backing can be used most effectively.
“The Green Homes Grant should serve to benefit both landlords and their tenants in the long-term.”
How can George Hay help?
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 do not 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.