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Government Revises Green Initiatives: A Welcome Relief for Landlords

In a significant policy shift, the Government has revealed changes to its eco-friendly initiatives. Key modifications include:

  • Discontinuing policies that mandate landlords to enhance the energy efficiency of their properties, while still promoting household energy upgrades;

  • Increasing the Boiler Upgrade Grant by 50%, elevating it to £7,500, aiding households keen on switching from gas boilers to greener alternatives like heat pumps;

  • Postponing the prohibition on installing oil, LPG boilers, and new coal heating in off-gas-grid residences to 2035, from the earlier 2026 deadline. This adjustment is pertinent for homes incompatible with heat pumps, preventing homeowners from incurring approximate costs of £10-15,000 within a tight span of three years;

  • Announcing exclusions for the 2035 fossil fuel boiler phase-out, particularly for households finding transitions to greener alternatives challenging. Predictions indicate this could encompass nearly 20% of residences, notably off-gas-grid homes demanding hefty retrofitting or extensive electricity connections;

  • Dismissing suggestions like car-sharing mandates, dietary changes, aviation taxation, or an increase in recycling bins, ensuring residents’ lifestyles remain unaffected;

  • Extending the deadline to ban sales of new petrol and diesel cars by five years, meaning only zero-emission vehicles will be available from 2035. This alteration offers families the flexibility to leverage potentially dropping prices in the coming decade.

Reacting to these changes, Michael Cook, Group Managing Director of Leaders Romans Group, expressed his approval. He commented: “Whilst we recognise all individuals and industries must think differently and act differently to reduce their carbon footprint and the impact of climate change, we welcome this u-turn by the government. Essentially, asking homeowners and landlords to dig deeper into their pockets at this difficult time is unwanted pressure.”

Cook further highlighted the pressures landlords face, saying, “Landlords in particular have been continually hit with higher taxation and legislation, coupled with inflationary pressure and higher interest rates, leading many to conclude that its is time to sell. This supply restriction has seen rents go up at a greater rate than in living memory. Reducing capital outlay by reversing out of policies like this is in everyone’s interest in the short to medium turn.”