Support, Advice and Experience within the Property Market

What the Green Industrial Revolution means for Landlords

From Ben Rolfe on November 27, 2020

Last week Boris Johnson set out a ten-point plan for a green industrial revolution that will bring new investment to the housing sector, including an extension to the Green Homes Grant Scheme.

While specific detail will follow, this appears to be welcome news. As I recently wrote, the Government consultation on improving energy efficiency in private rented sector (PRS) properties, has the commitment to upgrade all PRS homes in England and Wales to an Energy Performance Certificate Band C by 2030. But setting targets for improving energy efficiency are meaningless if opportunities and support are not offered to achieve them.

The ten-point plan, which is part of the UK Government’s proposal to level up across the country, covers clean energy, transport, nature, and innovative technologies, and is said to mobilise £12 billion of Government investment to create and support up to 250,000 highly-skilled green jobs in the UK, and over three times as much private sector investment by 2030.

The announcement stated that one of the key elements is to make homes, schools, and hospitals greener, warmer, and more energy-efficient, whilst creating 50,000 jobs by 2030, and a target to install 600,000 heat pumps every year by 2028.

To achieve this, Boris Johnson announced £1 billion of funding next year, an extension to the Green Homes Grant voucher scheme by a year and making public sector buildings greener, and cutting bills for hospitals and schools, as part of the Public Sector Decarbonisation Scheme.

ARLA Propertymark has long called for greater funding and support for incentives for PRS landlords to make changes and improve the energy efficiency of property.

“In striving to reduce emissions, it’s absolutely right that we should focus on our homes,” commented Timothy Douglas, Propertymark Policy and Campaigns Manager, “the housing stock in this country is among the least energy efficient in the world. However, setting targets for improving energy efficiency will remain meaningless if landlords are not offered opportunities and sustained support to achieve them.

“It remains to be seen how the UK Government will incentivise people to have their homes retrofitted with heat pumps in order to hit their ambition of installing 600,000 heat pumps every year. Extending the Green Homes Grant is a step in the right direction as this will support homeowners and private landlords who have little access to funding outside of their own income to make energy efficiency improvements to their properties.”

The Government has said that these proposals mark the beginning of the UK’s path to net zero, with further plans to reduce emissions whilst creating jobs to follow over the next year in the run up to the international COP26 climate summit in Glasgow, November 2021.

As always, I will keep you updated and if you have any questions on these issues or anything else you need advice on in the local property market, please call me as I am always happy to help.