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21 Sep, 2023

Government Eco U-Turn Will Save Money for Buy-to-Let Landlords in the UK

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    What Does the Eco U-Turn Mean for Property Investment?

    Earlier this week, Rishi Sunak announced numerous changes to the government’s net zero by 2050 plan. Sunak confirmed that landlords no longer need to meet improved EPC ratings. Meanwhile, the Boiler Upgrade Grant will provide more money for households who want to replace their boiler with a heat pump.

    These changes may help landlords save thousands of pounds.

    Read on for more information.

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    What Are the New Changes Affecting Landlords in the Government’s Eco U-Turn?

    The government announced several changes to the current green commitments.

    However, PM Rishi Sunak still insists they are committed to achieving net zero carbon emissions by the 2050 deadline.

    The changes include:

    Delay in Heating Homes Revamp

    Originally, the government intended to phase out gas boilers by 2026. However, that date has been pushed back to 2035. This should cover up to one-fifth of UK homes.

    In addition, Sunak announced that the Boiler Upgrade Grant will rise to £7,500.

    “There are no strings attached – the money will never need to be repaid,” Sunak said.

    “We’ll never force anyone to rip out their existing boiler and replace it with a heat pump.”

    Energy Efficiency Targets Scrapped

    The PM also promised to scrap energy-efficient policies that would require landlords to upgrade their homes. However, he still encouraged households to make efforts to improve their EPC rating. Also, looking at the opinion to buy an off-plan property has never been more viable.

    The original policy stated that properties would need to achieve an EPC rating of C or higher by 2025 for new tenancies. In 2028, that would extend to existing tenancies as well. Both of these measures are now scrapped.

    An EPC (or Energy Performance Certificate) reflects a building’s energy efficiency. This relates to heat and light consumption. The scores range from A-G.  Why not read about the latest ways you can invest in real estate in 2023?

    Sunak also stated that the government will “continue to subsidise energy efficiency”.

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    Sunak Insists Net Zero 2050 Target Remains in Place

    Despite these policy alterations, Sunak insists the government is committed to the net zero 2050 target – though he wants to bring British people along with him.

    He states this is the most “realistic path” to achieving that goal.

    “That’s how we’ll turn the challenge of net zero into the greatest opportunity – and the proudest achievement – of our lifetimes,” he said.

    Sunak confirmed he will attend COP28 in Dubai in late November and promised to “set out the next stage in our ambitious environmental agenda”. From a buy to let in liverpool to just buying an investment property, we have it covered!

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      The National Residential Landlords Association Reacts to the U-Turn

      The chief executive of the National Residential Landlords Association, Ben Beadle, insists we still need a concrete plan for the government.

      “The NRLA wants to see all properties as energy efficient as possible. However, the uncertainty surrounding energy efficiency policy has been hugely damaging to the supply of rented properties.

      “Landlords are struggling to make investment decisions without a clear idea of the Government’s direction of travel.

      “It is welcome that landlords will not be required to invest substantial sums of money during a cost-of-living crisis when many are themselves struggling financially.

      “However, ministers need to use the space they are creating to develop a full plan that supports the rental market to make the energy efficiency improvements we all want to see.

      “This must include appropriate financial support and reform of the tax system which currently fails to support investment in energy efficiency measures.”

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        Eco-Friendly Properties Should Still Be a Buy-to-Let Priority

        While these energy-efficiency policies have been put on the back burner, eco investment investors should still prioritise buy-to-let properties that promote eco-friendly living.

        In 2021, 70% of tenants said they would prefer their home to be more eco-friendly.

        Here at RWinvest, we specialise in off-plan property investment. This means you purchase the property during the construction phase. Our properties have state-of-the-art facilities. Many offer supreme eco-friendliness and energy efficiency.

        For instance, ELEMENT – The Quarter – located in Liverpool’s Knowledge Quarter – offers co-living spaces fitted with eco-friendly and sustainable technologies. That complex was completed in September 2023.

        Additionally, The Gateway in Liverpool – four New York-style apartment buildings – is also set to include eco-friendly technologies and prioritise energy efficiency.

        Contact us today for more information on our eco-friendly or our student accommodation investment opportunities.

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        Author

        Dale Barham

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        Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.

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