The government recently announced the forthcoming introduction of the ‘Green Homes Grant’. This scheme will take the form of vouchers, which will be made available to homeowners and landlords alike, to help make their properties more energy efficient. It’s scheduled to be introduced in September 2020 – here’s everything you need to know about it.
What is the Green Homes Grant?
Chancellor Rishi Sunak proposed that homeowners will be given up to £5,000 in vouchers, which could be used to help cover costs associated with energy-efficiency improvements. In most instances, the money would cover most (or even all) of the cost involved. Vulnerable households will be eligible for even more - £10,000 in total.
The vouchers serve a dual purpose. The first is to encourage energy efficiency (and help the UK reach its climate change goals), and the second, to boost the economy by creating more jobs.
What can you spend the vouchers on?
Although the details are still vague, it seems that the vouchers can be spent on improvements like insulating the loft space, floor or walls, or double-glazing the windows. The Treasury claimed that for a floor and cavity wall insulation normally costing £4,000, the homeowner would be able to put £2,680 in vouchers towards the cost, leaving only £1,320 to pay.
Lower income houses are likely to have the entire cost paid by the government, which means they won’t have to spend a penny.
How can you get the Green Homes Grant vouchers?
The suggestion seems to be that the application can be made online in September. It’s believed that any homeowner will be eligible to apply for the vouchers; though this still requires official confirmation. However, experts suggest that eligibility may be tested via an inspection of the property; to assess what work needs to be done.
Only homeowners in England may apply – the offer doesn’t extend to properties in Wales, Scotland or Northern Ireland.
What are the advantages for homeowners and landlords?
There are numerous benefits for homeowners and buy-to-let property owners alike. These include:
- Better energy efficiency. A more energy efficient home is not only great for the environment; it also helps to keep the bills down too. This means less expenditure over time.
- More resale / rental appeal. Energy efficiency is a great USP these days. When you’re ready to sell your home, buyers will be encouraged by its eco credentials. Likewise, if you’re trying to attract tenants, telling them the home is energy efficient is likely to entice them to move in.
- Cheaper costs. The vouchers can save you thousands in home improvements, so they’re well worth cashing in on. It’s unlikely that the scheme will be in place forever, so the recommendation is to take advantage of it while it’s there.
When should you apply?
It’s anticipated that full details of how to apply will be released shortly, and that the application process will be relatively straightforward (and online). As it stands, September is the official date that homeowners can start applying.