The Government is backing a new trial to give homeowners who make their properties more energy efficient a mortgage rate cut.
Perenna Bank will receive more than £193,000 in Government funding to help develop a long-term, fixed-rate mortgage that will incentivise customers to make their homes more energy efficient by offering to reduce their mortgage rate.
Another trial will see buy-to-let landlords add the cost of making properties more energy efficient onto their mortgage – enabling them to borrow the money for the improvements and include it in their monthly repayments.
Ashman Bank will be awarded £200,000 to design and develop this, which will assess a property’s energy efficiency, provide options on how it can be improved and incorporate the cost of carrying out the work on to the duration of the mortgage.
Clydesdale Bank, trading as Virgin Money, will also receive £171,000 for a product offering bespoke energy efficiency products for customers’ properties after carrying out a survey to outline improvements needed.
The projects are among 26 green finance products being developed and tested, backed by £4.1m of government funding.
Lord Callanan, Minister for Energy Efficiency and Green Finance, said: “The Government has put in place long-term commitments to ensure homes across the country have greater energy efficiency to reduce bills, drive down energy use and lower emissions.
“We are supporting these organisations to develop fresh and innovative ways of helping more people get better access to energy efficiency measures, such as loft insulation, double glazing and heat pumps.”
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The new MEES Bill is already speeding its way through Parliament. The Minimum Energy Performance of Buildings Bill 2022-23 had its first reading in March this year and the second reading is in November this year. According to my local MP the Bill met with complete cross party support a few weeks ago. The 8 million+ voters living in fuel poverty and the £29 billion Government subsidy paid directly to fossil fuel energy producers (which could have paid for the NHS or tax cuts) has focussed the politicians' minds. The Bill confirms the timetable that all energy wasteful EPC Grade D and Grade E rental houses and flats must be upgraded to Grade C by 2028, at the latest. So that gives domestic landlords a full 5 years to insulate the walls, loft or roof and install lower running cost heating systems into their rental units. It would seem a sensible hedge to invest in an All Electric heating systems (within the well insulated property) because CO2 pollution tax and price rises are clearly on the horizon as we decarbonise the UK Electricity Grid at pace and scale (25% of our nation's electricity demand already met by renewables after 23 years of ringing the British Isles in the world's largest wind farms).
Landlords need to get an up-to-date draft 'as is' EPC and then a draft 'predicated' EPC showing the best pathway to reach EPC Grade C. All very simple and easy to do when the unit is vacant and in-between tenancies. Landlords have 5 years to improve their assets and stop energy waste. I wonder how many will get on with this essential work and how many will be moaning and bleating in January 2028 when they realise that they've done nothing over the next 5 years. Of course, they will blame the Greta, Just Stop Oil, the Government, the Opposition, their customer tenants, their managing agent - in fact everyone except themselves.
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