There was a noticeable green tint to the 2020 summer mini-budget, with £3bn announced to boost the UK’s energy efficiency.
Much of which will take the form of incentives designed to tempt homeowners and landlords into making eco-friendly home improvements. Great news for the environment, not to mention the UK employment market.
Green economy homes
Of the £3bn put aside, £2bn has been earmarked for the ‘Green Homes Grant’ scheme, which opens in September. This newly launched initiative aims to encourage homeowners and landlords to make energy-saving upgrades to their properties. This includes such things as insulation, greener boilers, and energy-efficient lighting.
With the Green Homes Grant, the government will cover the costs of two-thirds of the work through a voucher, with the homeowner or landlord paying the rest of the costs. For example, if you got a quote from an approved supplier to install an energy-efficient boiler for £1500, the government would contribute £1000 to the costs, and you would pay £500.
The maximum amount available for work is £5000, though the poorest households will not have to pay a share, and will be eligible for £10,000 towards improvements. Exact details are still to be revealed, but the scheme has been received positively from many corners.
For homeowners and landlords looking to undertake home improvements, the potential for savings could continue over the long term. Sunak believes that annual energy bills could be cut by around £300 a year as a result of improvements.
With much of the UK’s older housing stock potentially suffering from damp issues and lack of insulation, this scheme offers an excellent opportunity for the country’s many landlords and homeowners to get work done at a reduced cost and enjoy energy bill savings through the years.
Meanwhile, the government believes the green improvements industry will stimulate up to a hundred thousand new jobs in the next year, which is much-needed positive news for the economy.
Alongside another £1bn investment in decreasing the environmental impact of public buildings and social housing, further tens of millions have been set aside to create green jobs in charities and local authority areas, with plans to expand and restore conservation programs throughout the country. It seems the government is taking seriously their pledges to reduce emissions, and improve our wider environment.
The treasury has already talked about the potential for green shoots of recovery, but with these announcements, they seem to be taking it very literally.
Attwells Solicitors are here to support landlords with advice on buying, selling, and letting. Contact Will Oakes on 01206 239764.