The Chancellor yesterday announced that the UK Government is to introduce a new energy saving £2billion Green Homes Grant that will provide up to £5,000 per household for landlords and homeowners designed to make homes more energy-efficient.
From September, homeowners and landlords will be able to apply for vouchers to help them fund energy-saving home improvements. It is intended that this amount will cover up to two thirds of the cost per household.
For low income households, the government has said it will provide vouchers to cover up to £10,000 of improvement works.
Chancellor Rishi Sunak claims the funding will help 650,000 homes to become more energy efficient while saving households £300 a year on their energy bills. He has also said that the measures will be the “carbon-cutting equivalent” of taking 270,000 cars off the roads, while supporting around 140,000 green jobs.
The programme will help the UK Government meet its target of net-zero greenhouse emissions by 2050 and the Chancellor believes his funding could support the 140,000 green jobs, allowing local tradespeople to make local homes warmer and cheaper to heat.
The £2 billion for energy-efficient home improvements will include installing insulation, double glazing and replacing old boilers. Another £1 billion of the total energy saving package will be spent on public buildings, making schools and hospitals more energy efficient, with £50million to be spent on retrofitting social housing with insulation, double glazing and heat pumps.
The Government is to pay at least two thirds of the cost of the energy-saving private home improvements under the Green Homes Grant and the scheme will last for 12 months. It means that for an improvement costing £5,000 a homeowner or landlord would pay £1,667, while the Government would contribute the remaining £3,333.
Owners are to apply online and will be directed to accredited local suppliers. They will provide a quote and once the work is approved, a voucher for the Government’s share of the cost will be issued.
Business Secretary Alok Sharma has said:
“What [the scheme] ultimately means is lower bills for households, hundreds of pounds off energy bills every year, it’s supporting jobs and is very good news for the environment.”
ARLA Propertymark has said it has long been calling for the reintroduction of the Landlord’s Energy Saving Allowance. In its manifesto for the 2019 General Election, Propertymark called for help for the private rented sector with energy efficiency and combatting climate change.
Ben Beadle, chief executive of the National Residential Landlords Association, has said:
“Improving the energy efficiency of rental housing is good news for tenants, landlords and local economies. We encourage all landlords to make use of this as it will mean housing standards are improved, tenants will save money and it will reduce carbon emissions across the whole sector.”