The Green Homes grant scheme – How Landlords can take advantage
For those landlords who like to invest in period-style properties with character, there often comes a trade off with spacious rooms versus higher maintenance expenses as these properties tend to be older in age. Some of the reasons for higher maintenance costs are windows being originals and single glazed, to having an old boiler, to the possibility of having no cavity wall insulation due to the era of when the property was originally built.
The Green homes grant scheme has presented an opportunity to landlords to help make their buy to let properties more environmentally friendly. These improvements will attract more tenants by boasting a higher energy performance and will also boost the capital value of the property in the long run too.
In 2018, the UK Government passed law to ensure that rental properties had a minimum energy rating on their EPC’s of band E or above before being rented out. This is known as the ‘Minimum level of energy efficiency standard”. Those properties which fell below the threshold had to find ways to improve the energy efficiency of their properties if they wanted to keep them rented out
There have been rumours that there could be plans in the future to lower the EPC requirement to a minimum of D or even C in the coming years. Inevitably, investment in UK housing stock is much needed and was going to happen one way or another.
Investors should take advantage that the UK Government grant, which will fund £2 of every £3 that a landlord spends on energy improvements for their rental properties. Property owners should use this scheme to target properties in their portfolios which are older or less efficient than they could be and get them improved.
The Chancellor, Rishi Sunak this week has launched the grant which is worth up to £5,000 per property and is a £2 billion scheme aimed at improving the energy efficiency of housing in the UK.
A starting point would be to look at the EPC’s for their rental properties and find the ones that would be the most improved from this scheme.
To access a Green Homes Grant, you can apply through the governments’ website and get a quote from a listed supplier. If your application is approved, the government will send a voucher and the work can commence.
The grant has a total of 45 options to help increase energy efficiency including insultation – wall, under-floor, and roofs. Solar thermal systems, low carbon heating technology like air source or ground source heating pumps, double or triple glazing, heating controls like thermostats, insulation for hot water tanks are all on the list amongst the many other options.
Online applications for the Green Homes Grant are open and can be found on the Government website here.
