- What Does the Eco U-Turn Mean for Property Investment?
- What Are the New Changes Affecting Landlords in the Government’s Eco U-Turn?
- Sunak Insists Net Zero 2050 Target Remains in Place
- The National Residential Landlords Association Reacts to the U-Turn
- Eco-Friendly Properties Should Still Be a Buy-to-Let Priority
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!