From Guest Blogger Sustainafreak: Green Property Incentives in the UK – Effective or Not?
(Gotta love this guy’s name! – Ed) In a bid to improve the energy efficiency of UK homes, the British government has introduced a handful of incentives to landlords to maximise the economic potential of their properties. The idea behind this is twofold: 1. tenants will save money on their energy bills, and 2. by raising the economic rating of the property, it will in turn increase market value.
But are these green initiatives effective?
The Green Deal
This government scheme benefits tenants and landlords as well as homeowners. This scheme is available to any property with an electric meter and its aim is to implement energy-saving improvements.
The initial stage of this process involves a visit from a Green Deal assessor, who will evaluate the property and decide which the most beneficial changes are. This may include:
- Renewable energy sources
- Insulation
- Double glazing
- Draught proofing
- Heating
Both the landlord and tenant must agree to this scheme in a rental property, as in most cases, energy bills are the responsibility of the tenant.
The Home Improvement Fund
This grant goes hand-in-hand with the Green Deal scheme. For a limited period, the government has dedicated £100 million towards the cost of energy and green efficient property improvements.
In order to qualify, the Green Deal assessment must have been carried out during the last 2 years and the homeowner must be in possession of a quote for the intended work.
The grant provides up to £1,250 towards the cost of 2 improvements from a selected list (see here), plus an additional £500 if applied for within 12 months of property purchase.
The Landlord’s Energy Saving Allowance
This grant is applicable to landlords only, however this can be used on multiple properties. The maximum amount a landlord can claim is £1500 per property if they install the following:
- Insulation – solid wall, cavity, floor or hot water system
- Draught proofing
Why Make Green Improvements?
The eco-incentives included in these government schemes can offer substantial savings to tenants and home owners, as well as increase the market value and appeal of a property. For example, insulation reduces energy bills, improves the Energy Performance Certificate (EPC) and helps to reduce the property’s carbon foot print.
Therefore these government grants are effective at both reducing cost and protecting the environment, and landlords and homeowners would be wise to take advantage of these schemes. For more information, HomeLet have a full break down of these government grants which can help landlords decide on the most effective grant to suit their needs.
