Government reveals true scale of Green Homes Grant farce

26 April 2021 | Renting

Government reveals true scale of Green Homes Grant farce

ARLA Propertymark says there should be a long term appropriately funded strategy to help the private rental sector and home owners improve energy efficiency and combat climate change.

Its call follows the government revealing figures relating to its ill-fated Green Homes Grant programme which was scrapped recently, a year earlier than expected.

Data released by the Department for Business, Energy & Industrial Strategy shows that despite receiving over 100,000 applications – many from landlords seeking to improve their properties – only a small number of pay-outs were actually made. Since its launch in September 2020, the scheme saw 113,700 applications, with 10,300 measures installed but only 6,700 homes receiving the money from the scheme.

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The target for this period had been 600,000 homes to have had measures installed.

ARLA says the data shows that while there is an appetite to make these improvements, this needs to be backed up by sufficient funding and a well-thought-out strategy.

“Without providing landlords and homeowners with incentives and access to sustained funding, it is unlikely that energy efficiency targets for the private rented sector and a reduction in emissions will be met” warns ARLA policy and campaigns manager Timothy Douglas.

“We are hopeful for a new solution to be on the horizon and would encourage cross-departmental working to analyse the scheme’s shortcomings and introduce something more fit for purpose.”

Earlier this month the government announced that £300m previously allocated for the Green Homes Grant would instead go into a programme administered by local authorities, targeted at lower income households.

There was no suggestion this would include any private rental sector properties.

After the GHG scheme was scrapped at short notice the House of Commons Environmental Audit Committee chair Philip Dunne MP – a Conservative – said: “We have been clear all along:the Green Homes Grant was a good initiative but was poorly implemented.

“This government has shown its willingness to be an environmental world leader, but I fear its green credentials risk being undermined by poor policy decisions. 

“Actions speak louder than words, and simply abandoning a critically important decarbonisation scheme when cracks appeared sets a poor example in the year we aim to show climate leadership.

“Cutting emissions starts at home. The homes we live in contribute a huge amount of the UK’s greenhouse gas emissions, so undertaking effective retrofits and stemming those emissions is key to reaching net zero by 2050. 

“Businesses need to get behind low-carbon housing and have the confidence to upskill employees. Householders need to get behind low-carbon housing and understand how energy efficiency can be enhanced and heating costs cut. 

“Above all, the government must get behind low-carbon housing and comprehend the complexity of decarbonising our housing stock, committing to initiatives essential to make net zero Britain a reality.”

This post has originally been featured in Letting Agent Today.