Mortgages.scot

Rishi Sunak held a press conference today revealing changes to the Net Zero Targets. While many of the changes have been welcomed by the public, others are not so impressed. In case you missed the conference you can watch it below.

Caution - This does not apply to Scotland yet if at all. It depends on the stance from the SNP

The intention remains that the UK wants to meet its 2050 target for net zero carbon, just not as quickly as first intended. The PM said that current plans meant householders would need to make expensive changes in as little as two years and tenants would be impacted by rent rises. "The country needs sensible green leadership," he said.

Whilst there was a lot noted the points I am focussing on relate to property.

Boiler upgrade grants

There is currently a boiler upgrade grant available for those who are willing to switch from a standard gas boiler to a low-carbon alternative such as a heat pump. The grant has increased by 50% from £3,750 to £7,500.

Gas boiler upgrades

The target to upgrade standard gas boilers, like the ones many of us have in our homes today remains at 2035. However, a new rule has been brought in that the poorest in society (1/5th of homes) will be exempt from the ban on gas boilers after 2035. They will still be able to replace their existing gas boiler with a new one which will save them money vs having to upgrade to a new system.

Delay for off-grid home

Currently, off-grid homes in the UK are serviced using Oil, LPG Boilers, or coal. They are too far from mainstream gas networks to be connected to them so rely on the delivery of resources such as oil to heat their homes.

The intention was to phase out Oil, LPG, and coal starting from 2026. This has been pushed out until 2035. Many off-grid homes are not even suitable for alternatives such as heat pumps. This change is likely to save off-grid homeowners as much as £15k had they need to upgrade in the next few years.

Bins!

Yes, bins! The PM announced the plan to issue homes with 7 different bins to sort their rubbish has been scrapped. Nothing is changing from what we have now but at least no more. This wasn't actually being introduce, it was only at the 'discussion' stage so not really a change.

EPC rating of privately rented homes

There was an intention that privately rented property would require a minimum rating of C by 2028. This is no longer to be enforced. The PM stated that whilst the Government will continue to support those who want to make homes more energy efficient through subsidies, it would never force homeowners or landlords to improve the efficiency of homes.

Landlords facing heavy bills to meet higher energy standards will be relieved. So should tenants as the cost of all the upgrades will ultimately land with them. This shouldn't of course excuse landlords not maintaining their properties. This will also help stop the flow of properties being sold by landlords to buy newer properties that already meet the future minimum EPC standards.

New homes

None of these changes apply to new homes, home builders are still expected to meet minimum energy efficiency standards and use suitable low-carbon alternatives to standard gas boilers.

Summary

It's a big turnaround from the PM. That said the changes are more realistic than those originally planned which I'm sure is a welcome announcement for most homeowners and landlords.

Although not related to property it was also announced that the ban on Petrol and diesel cars intended for 2030 has also been moved back to 2035. This wasn't so well received by car makers who have invested heavily in electric cars and the infrastructure to cope with them by the original date of 2030.