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Green Homes Grants: Government Extends Scheme

Posted on November 20th, 2020

The Green Homes Grant Scheme, under which landlords can apply for a grant of up to £5000 to improve the energy efficiency of their properties, has been extended by a year.

Launched in September 2020, the scheme was due to end on 31st March 2021. As part of a new plan for a green industrial revolution unveiled by the Government this week, the scheme will now be extended until March 2022.

What the extension means in practice

As part of the Green Homes Grants scheme, landlords can apply for grants which are issued as vouchers, and cover up to two-thirds of costs, available for specific measures.

The extension means the vouchers will be valid for three months from the date they are issued or until 31 March 2022 (whichever is earlier). Vouchers must be redeemed before the validity period ends. An extension of the voucher can be requested at any time before your voucher has expired, unless the scheme has been closed.

Higher energy efficiency targets for landlords

As of this year all rental properties that are legally required to have an EPC (other than those with valid exemptions) must have an EPC rating of E or higher to be legally rented out.

Coinciding with the launch of the Green Homes Grant scheme in the summer, the Government also announced plans to raise the minimum energy efficiency standards for rental homes to C grade or higher from April 2025 for new tenancies, (unless they have a valid exemption).

The Government is currently consulting on the proposals, with the cost cap proposed for landlords £10,000 – much higher than the current £3,500 level. Under the proposals all landlords will need to hit the targets by 2028 (unless they have a valid exemption).

For more information on the Green Homes Grant scheme, see https://www.gov.uk/guidance/apply-for-the-green-homes-grant-scheme

Article abridged from NRLA

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