Green house

Landlords and homeowners have extra year to apply for Green Homes Grant

Property owners across England have until 31st March 2022 to have energy efficient upgrades to their properties completed through the Green Homes Grant. Landlords and homeowners can use this to add value to their properties.

Prime Minister Boris Johnson announced the extension to the Green Homes Grant Voucher Scheme in his 10 Point Plan for a Green Industrial Revolution. This scheme is designed to help the UK reach its target for net zero carbon emissions by 2050 as Britain builds back greener.

Now, landlords and homeowners have until the end of March 2022, to get their upgrades completed through the Green Homes Grant. The scheme will help 600,000 households. And the Treasury claims the vouchers could help property owners make an average annual saving of £600 on energy bills.

Lord Callanan, the minister for climate change, says: ”The Green Homes Grant scheme gives homeowners and landlords right across the country a cheaper way to make their homes more energy efficient and cut their bills – all while making their contribution to tackling climate change.”

The extension is welcome news

Prior to the extension announcement, many had complained of a lack of Trustmark qualified builders to undertake the work. Thousands of projects weren’t expected to be completed by the previous deadline of 31 March 2021. The industry welcomed the news of the extension. It provides more time for property owners to ensure their projects are completed by the new deadline.

Lord Callanan comments: “Today’s announcement means an extra year to take advantage of this new scheme, helping households and tradespeople who can plan their workload and create new jobs in their communities.”

Green Homes Grant has been open for applications since September of this year. The overall funding of the £2bn scheme hasn’t been expanded. Because of this, industry professionals urge property owners to apply soon.

Eligible energy efficiency improvements

The Green Homes Grant scheme funds up to two thirds of the cost of energy efficiency improvements, up to a value of £5,000 per household. The scheme also funds 100% of improvement costs for homeowners on low incomes, up to a value of £10,000. However, new-builds and non-domestic properties are not eligible for this funding.

Through the Green Homes Grants scheme, renovations must increase the energy efficiency of the property. There is also specific criteria that needs to be fulfilled. Examples of qualifying green home improvements include insulation, heating, double and triple glazing and draught-proofing. Additionally, renewable energy features, such as heat pumps and solar panels, are eligible upgrades as well.

The benefits of ‘green’ properties

Earlier this year, the government raised the minimum energy efficient standards for rental properties. Currently, it’s illegal to let out a property with an EPC rating of F or G. From April 2025, rental homes must have a C grade or higher for new tenancies. Using the Green Homes Grant could help landlords make their properties meet these standards ahead of the deadline.

There are many added benefits for owning a more energy efficient property. Green home improvements can increase a property’s value. And for landlords, it could make their buy-to-lets more appealing to renters. As the world becomes increasingly eco-conscious, higher energy efficient ratings and cheaper bills often attract a wider array of tenants.

This is why new-builds, which are built to the latest energy standards, are especially attractive to investors and tenants. As more of the general public strive to live greener lives, new-builds and properties that have undergone home energy improvements will provide an added selling point in the years to come.

To find out more about the government’s Green Homes Grant scheme and find out if you’re eligible, see the government’s website.

BuyAssociation has a wide range of property investment opportunities throughout the UK. Most of our properties include new-builds or newly converted properties with high energy efficiency ratings, for landlords and homeowners. For more information, get in touch, or sign up for free for early access.

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