Chancellor unveils £3.4 Billion plan to boost energy efficiency in homes

Chancellor unveils £3.4 Billion plan to boost energy efficiency in homes

0:03 AM, 1st November 2024, About 3 weeks ago 5

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The Chancellor has announced that a staggering £3.4 billion will be spent over the next three years on heat decarbonisation and household energy efficiency.

The money will support the Warm Homes Grant Scheme, which will offer landlords up to £30,000 to boost energy efficiency in their first rental property and up to £15,000 for each additional property.

Ed Miliband has previously said all private rented sector properties must meet EPC C targets by 2030.

Rolling out heat pumps

In the Budget, Chancellor Rachel Reeves announced the Warm Homes Plan aims to upgrade five million houses.

The £3.4 billion also includes £1.8 billion to support fuel poverty schemes.

Budget documents said: “The Warm Homes Plan will transform homes across the country by making them cleaner and cheaper to run, from installing new insulation to rolling out solar and heat pumps.

“As the first step towards the Warm Homes Plan, the settlement provides over £1 billion next year, and to provide supply chain certainty now, a guarantee of investment of an initial £3.4 billion towards heat decarbonisation and household energy efficiency between 2025-26 and 2027-28.”

Landlords with properties in eligible postcodes will be given grant

A Department for Energy Security and Net Zero spokesperson told Property118: “The plan will offer grants and low interest loans to support investment in insulation, low carbon heating and other home improvements.”

For landlords, the Warm Homes Grant will provide £15,000 per eligible home for energy performance improvements, plus an additional £15,000 to install low-carbon heating, such as heat pumps.

However, the funding is capped at a maximum of £15,000 per home for energy performance upgrades and £15,000 for low-carbon heating.

Only landlords with properties in eligible postcodes, whose tenants are benefit claimants or low-income households, will be eligible for the grants.

Protect tenants from eviction

In a video, on X, formerly Twitter, chief executive of Generation Rent, Ben Twomey says: “The action taken on the Warm Homes Plan will help reduce bills and fuel poverty for people.

“This is good news, but we really need the government to protect tenants from evictions or rent hikes that might come from these energy-efficiency upgrades.”

The Labour government has also pledged to boost funding for the Boiler Upgrade Scheme in response to high demand.

The initiative offers grants of up to £7,500 to help replace outdated boilers with modern, eco-friendly heat pumps.


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MartinR

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10:58 AM, 1st November 2024, About 3 weeks ago

So what is the catch? Only available to landlords with properties in eligible postcodes, Labour marginal constituencies? Anybody have any detail? Looks like another Two Tier Starmer activity.

Reluctant Landlord

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11:04 AM, 1st November 2024, About 3 weeks ago

hahahah - nothing behind the headline yet. Councils have to the end of Oct to contact the govt to see if they even want to be involved in this...

The pitch about this on the gvt website press release says this is all still being assessed...and then they go on to say the whole EPC grading system really needs to be looked at first.

a load of hot air and waffle....

Reluctant Landlord

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11:05 AM, 1st November 2024, About 3 weeks ago

Reply to the comment left by MartinR at 01/11/2024 - 10:58small print suggests LL's can have ONE property where the max of £15k 'help' will be permitted , after that the LL to personally pay 50% for any other property and any other measures...but it all seems to be pitched towards heat pumps or solar . ie. discounting many rental properties from this anyway.

Reluctant Landlord

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AnthonyJames

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0:02 AM, 2nd November 2024, About 3 weeks ago

As per usual, anyone in the South-east with normal tenants not claiming benefits won't get a penny. Landlords will be required to pay the whole cost of energy assessment, external insulation, heat pump etc themselves, just to get up to a C in an EPC system that is based on energy costs, not actual real world energy and carbon usage.

This will wipe out profits for many people for 10 years plus, all to no benefit to the landlord. What a system!

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