• The Green Homes Grant has been extended
  • Interest in green housing is increasing
  • Homeowners have till 31st March 2021 to complete upgrades

 

In 2020, the government announced an extension of the Green Homes Grant, which attracts landlords to eco-friendly properties. The plan offers a grant to property owners to make eco-friendly renovations on their properties. 

The aim is to encourage more property owners to install energy-efficient improvements—for example, insulation, heating, draught-proofing, and double and triple glazing. Renewable energy innovations, like heat pumps or solar panels, also qualify.

How does it work?

The Green Homes scheme offers funding for up to two-thirds of the improvement costs, to the value of £5,000 per household. Homeowners and landlords wishing to use the grant have until 31st March 2021 to get their upgrades completed. 

What’s the result?

The Green Homes Grant means that making energy efficiency improvements is more accessible. The government’s extension of the grant has seen positive results alongside the public’s growing awareness of environmental issues.

In 2021, almost 84% of British homeowners plan to address energy efficiency changes in their property, according to a study by City Plumbing.

Nearly 53% of households plan to invest in green measures specifically to reduce energy bills. The home improvements most usually chosen include upgrades to the cavity wall, loft, and underfloor insulation. Improving your property’s insulation can have a significant impact on its energy performance. 

Evan Maindonald, CEO and founder of MELT Property, believes that buyers are ready to embrace sustainable living.

“If you are looking to improve the energy efficiency of your home, a good first step would be to review your property’s heating system. Old-fashioned heating systems will send utility bills rocketing and have a high carbon footprint. To reduce both, consider installing an Air Source or Ground Source Heat Pump.”

 

Why landlords should invest in ‘green’ rental properties

There are numerous benefits and incentives for landlords to invest in green housing, and now couldn’t be a better time. 

More appealing buy-to-lets 

Eco-friendly properties will help landlords make their buy-to-lets more appealing and add value to their properties. 

Caters for the target tenant

Landlords who invest more in their properties to offer a place that caters to their target tenant see the most market success. Tenants are beginning to expect more from their rental properties, and as environmental issues prevail on people’s minds, green housing is appealing to a wide range of tenants.

Eco-properties as an energy-efficient selling point

Landlords can now utilize eco-properties for their energy efficiency. As we all spend more time in our homes with coronavirus lockdowns, household bills go up. This will be particularly appealing for prospective tenants who are now working from home full-time.

Green mortgages as an added incentive

Lastly, green mortgages are gaining popularity. The UK population becoming increasingly eco-conscious has allowed ‘green mortgages’ to find their place in the mainstream market. The mortgages give borrowers special rates linked directly to the energy performance of their properties. This provides an added financial incentive for landlords and investors to focus on green credentials.