This Grant was announced by Chancellor Rishi Sunak during the mini-budget. The Chancellor has stated that from September this year, the option to apply for loans for such home improvements will be open. The most significant take away here is that now the Government will foot two thirds of the bill that homeowners run upon making environment friendly home improvements. There is a cap of £5,000 per household in this grant that goes up to £10,000 for low income homes
Why is the Green homes grant good news for landlords?
The most evident advantage that landlords will enjoy thanks to this grant is the substantial saving they stand to get when they opt for green home improvements. This means that they can now undertake improvement projects that they may have been putting off for lack of funds. With the footing approximately £2 for every £1 spent by the landlord, it is possible to get the improvement done at a third of the cost.
Interestingly, the cost cuts during home improvement is not the only benefit for landlords. Eco-friendly improvements, say, conversion to solar power, result in a recurring cost saving, with bills month after month being reduced significantly. Such improvements need to be looked at as an investment because of the returns they offer in the long term. This investment can now be done with the aid of the government.
Apart from benefits for landowners, the Green homes grant is also expected to give impetus to the job market in the country. If things go according to plan, this grant will result in tens of thousands of employment opportunities in the UK, ensuring that the entire economy enjoys a boost. In addition to this, the plan’s success will place the UK firmly on track towards its goal of achieving net zero carbon emission by the year 2050.
The disbursal of the Green homes grant
The improvements that will be covered under this grant are: wall/ floor or loft insulation, heat pumps, energy saver lighting and green boilers. Replacement of existing windows and doors with glazed windows and energy saving doors will also be covered under this scheme. Homeowners who wish to opt for such eco- friendly improvements can avail of the opportunity this grant has opened up.
Landlords will be able to get the entire grant process done easily online starting from the application process. Applicants will be directed to local suppliers who are on the approved list, to get quotes for the intended improvement project. After the work gets requisite approval, the government will issue a voucher covering its share of the cost.
The Green Homes Grant is especially favourable for low income homes thanks to the cap on the grant amount standing at a generous £10,000. Many such homeowners may be able to do a complete eco- friendly rehaul of their property without spending anything at all.
Accounting for about £2 billion of the government’s £3 billion budget, the Green homes grant is an impressive move by the government. The goal is clear- to encourage homeowners to Go Green with their properties.
At AceCrest, we have been keeping up to date with changes to funding opportunities – and understanding how to optimise them. If you are interested in availing the governments green funding vouchers for your let properties, once the scheme is set up and running by the government, then do get in touch with Arif at AceCrest who will be able to advise you on our available services on your property 020 8554 9999.