April 14th, 2021. Mark Hughes
The Green Homes Grant Scheme is Ending!
Following a review, the UK government has announced it will be bringing its Green Homes Grant voucher scheme to an end just six months after it was launched.
Many people believed it would continue after PM Boris Johnson requested its extension by another year as part of his 10-point plan for a green industrial revolution. Alas, it is no more.
Read on to find out why the Green Homes Grant scheme is coming to an end, and what this means for anyone who has applied.
Why is the Scheme Ending?
The government has said its plans were always for this to be a short-term economic boost while tackling its contribution to climate change. However, since its launch, the scheme has struggled, and demand simply hasn’t been met.
According to The Guardian ‘There were more than 123,000 applications for the grant by the end of February, but only 28,000 vouchers had been issued and only 5,800 energy efficiency measures had been installed.’
Furthermore, many in the construction industry have complained about the excessive red tape in registering for the scheme and applications could have been higher as homeowners found it hard to access the scheme. Many people were unable to get a response, and there was some reluctance to allow tradesmen in during the pandemic. As a result, just 10% of the 600,000 eligible homes signed up.
MPs deemed the scheme as having ‘botched implementation’ and said ‘the administration seems nothing short of disastrous’, therefore ending it early was best.
The government has now confirmed the £300m earmarked for the grant would now be utilised by local authorities to reach similar goals on a more localised scale.
Let’s Talk Numbers
If approved for the scheme, homeowners and residential landlords would be presented vouchers that could be used towards installing energy-efficient improvements to houses.
There was a maximum government contribution of £5,000, and the voucher would cover two-thirds of the cost of select improvements.
By the time the scheme closes completely, the government expects to have issued vouchers worth £300m.
What Does This Mean for Your Application?
If you made an application for the grant before 5pm on 31st March 2021, the deadline will be honoured and, on request, any vouchers already issued may be extended to allow for the arrangement of trades.
What is the 10-Point Plan?
The scheme announced in November 2020 plans to support green jobs and accelerate efforts to net zero. £12bn of government investment (and more from the private sector) has been mobilised, and 250,000 new green jobs are expected by 2030.
The 10 points are focused on:
- advancing offshore wind
- driving the growth of low carbon hydrogen
- delivering new and advanced nuclear power
- accelerating the shift to zero-emission vehicles
- green public transport, cycling and walking
- ‘jet zero’ and green ships
- greener buildings
- investing in carbon capture, usage and storage
- protecting our natural environment
- green finance and innovation.
The Green Homes Grant was expected to be a part of this plan.
““This year has taken a very different path from any we expected, but I have not lost sight of our ambitious plans to unite and level up our country.” “Just as science will enable humanity to rout coronavirus, so we will use the UK’s extraordinary powers of invention to repair the economic damage and build back better. “Now is the time to plan for a green recovery, with high-skilled, high-paid jobs that offer the extra satisfaction of helping to make our nation cleaner, greener and more beautiful.” ”Prime Minister Boris Johnson
So, What Now?
Well, if you were eligible for the Green Homes Grant, but did not apply, then you will most likely be eligible for the new local authority scheme when it is launched, as well as any others under the 10-point plan. However, if you cannot wait or were not eligible, securing a loan would most likely be your best option for funding improvement work.
Depending on the extent of the project you have planned, refurbishment finance or a bridging loan would probably suit you best. To help you find your best finance option, we would need to know more information. So, please get in touch with us today about residential bridging services and let’s discuss how we can help you make your property greener!
You can find out about green mortgages in this comprehensive guide.
Article By Mark Hughes
April 14th, 2021
Mark has 15 years’ experience within the financial industry working for high street banks and specialist brokers and now focuses on Bridging finance and Second charge loans.
He would describe his style of brokering as being heavily based on knowledge and efficiency.See more articles by Mark