#Can you get £10k to double-glaze your home in Green Homes Grant? Market

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Can you get £10k to double-glaze your home in Green Homes Grant?

There can’t be many homeowners who didn’t visualise sparkling new double-glazed windows or smart solar panels on their roof when Rishi Sunak announced his £2billion Green Homes Grant last month.

With up to £10,000 available for energy efficient home improvements, many people started thinking about how to spend a large cheque from the Chancellor.

But the scheme’s details have finally been unveiled on the Government’s website – and, as always, the devil is in the small print.

Catch: You can’t get a discount on double-glazing unless you are also applying for an improvement on a specific list that includes loft or cavity wall insulation

The scheme is littered with catches. First, all except the poorest homeowners will have to stump up a share of the cost themselves. Rather than covering the total amount, vouchers will be worth around two-thirds of the cost of the improvements.

Second, there is a strict hierarchy of works. For example, you can’t get a discount on double-glazing unless you are also applying for an improvement on a specific list that includes loft or cavity wall insulation.

And that’s just scratching the surface. Here, we guide you through Rishi’s latest boost for homeowners.

What exactly is the Green Homes Grant?

The Government has come up with a scheme to make our homes more energy efficient. It is handing out up to £10,000 per household to install insulation and double-glazing. It says this should cut carbon emissions, save people money, create and protect jobs – and boost the recovery from the coronavirus lockdown.

Broadly speaking, you decide on what needs to be done and the Government will pay the majority of the cost. However, in practice it’s not that simple.

What changes can I make?

Get ready to learn all about ‘primary’ and ‘secondary’ measures’, Under the scheme, the Government has divided energy-efficient home improvements into two categories: primary measures and secondary measures.

Primary measures are either insulation – for example, in a cavity wall, loft, or roof – or low carbon heating, such as ground source heat pumps, or solar thermal systems (or solar panels, in plain English).

Secondary measures, on the other hand, mean draught proofing, double-glazing or triple-glazing (where you are replacing single glazing), secondary glazing, upgrading to energy-efficient doors or heating controls and insulation, such as thermostats and smart heating controls.

Outlay: Solar panels are costly – a whole system can set you back as much as £6,200

Why are there two categories of work?

Here is the crucial point: you are only allowed to claim for one of the secondary measures if you are also installing one of the primary measures in your home.

That means you can’t get money off double-glazing unless you’re also carrying out insulation or heating works at the same time. And in the case of secondary measures, you are only allowed to claim up to the amount you are claiming for the primary measures.

So if you’re claiming £1,000 for your under-floor insulation (primary) you can only claim a maximum of £1,000 for your double-glazing (secondary).

Baffled? You won’t be the only one. It’s a lot to get your head around. Ultimately, the Government doesn’t want to hand out money willy-nilly – it wants to target its £2 billion of help at those who most need it.

The bad news is that the catches keep coming. For example, you are only able to upgrade to energy-efficient doors if you are replacing doors installed before 2002. To add to the confusion, hot water tank insulation is placed under secondary measures rather than under the primary ‘insulation’ measures.

And if you want to install low-carbon heating (a primary measure) you have to make sure you have – or are getting – adequate insulation too (the other primary measure).

Can I get my loft insulation replaced?

Sadly not. The scheme will not cover replacement insulation, but it will cover ‘top ups’ – for example, more insulation on top of what you already have.

What about old double-glazing?

This comes under the secondary measures but don’t think you can get rid of your tired old existing double-glazing under this scheme; it’s only for replacing single glazing.

Hierarchy of works: Primary measures are either insulation – for example, in a cavity wall, loft, or roof – or low carbon heating, such as ground source heat pumps

How much cash will this scheme give me?

For most homeowners, the vouchers will be worth about two-thirds of the cost of the improvements, up to a maximum of £5,000 per household.

In the Government’s own example, a homeowner installing cavity wall and floor insulation costing £4,000 would only pay about £1,320, with the Government contributing the remaining £2,680 through the voucher scheme. But those on low incomes or certain benefits should be able to get the whole cost covered, up to that headline-grabbing £10,000.

Those who can apply include all live-in homeowners, including long-leaseholders and shared ownership, landlords of private rented sector domestic properties and park home owners including traveller sites.

For some work, it is likely that permission from the freeholder might be needed, such as shared ownership homes.

However, new-build homes and commercial premises do not qualify.

So who gets the full £10,000?

Beware: The cost soon mounts up 

Upgrading your home to help save the planet will bring you savings over time, but the initial outlay can be expensive.

The cost of replacing external windows and doors is at least £2,500 to £3,000 for a typical three-bedroom semi – and a lot more for period buildings. uPVC double-glazed windows will set you back around £100-£200 each and the same again for fitting.

Cavity wall insulation is around £725 for a detached house, going down to £475 for a semi-detached and £330 for a flat. The Energy Saving Trust estimates that a typical air source heat pump installation costs around £6,000 to £8,000.

A single solar panel can cost around £350-£500 – while a whole system can set you back as much as £6,200.

To qualify for the full £10,000, you must be receiving at least one income-based or disability benefit, such as universal credit or disability allowance.

However, only owner-occupied homes or park homes will be eligible.

For the full list see this document by the Department for Business, Energy & Industrial Strategy (PDF). 

Even if you are only expected to take a small grant, it may still be worth getting the work done – the Government says you will reap the benefit by lower energy bills.

In their own example above, installing cavity wall and floor insulation could save you more than £200 a year on bills as well as reducing their home’s carbon footprint by cutting 700kg of CO2 a year from your home.

How do I know which work I need?

The Government says that advice on exactly what you need to do to make your home more energy efficient will be available from its Simple Energy Advice website.

While the website – which is still in beta testing mode – will contain information about suitable home improvements, there is no requirement to follow its advice and individual homes will not be assessed.

All work must be carried out by approved TrustMark and Microgeneration Certification Scheme (MCS) registered tradespeople and the Government is advising them to apply for accreditation so they can take part.

Homeowners will be given a list of approved local tradespeople who could carry out the work.

How do I apply for the grants?

The exact details of how to apply are yet to be revealed. But it is understood that when the process is launched, you’ll need to fill out an online application, get a quote from an approved supplier and have the quote approved.

The scheme is set to go live next month and is likely to last until March.

What help can I get outside England?

Although this particular Green Homes Grant is for England only, there are various other energy efficiency schemes running across all four home nations such as Warmer Homes Scotland, the Nest scheme in Wales and Affordable Warmth Scheme in Northern Ireland.

Check your local council website to find out what schemes are available in your area.

In Scotland, Home Energy Scotland offers free advice on energy savings and helps people find funding for energy efficiency schemes, from interest-free loans, to grants, the Warm Homes Discount and Renewable Heat Incentive.

In Wales, the Nest scheme provides free home energy efficiency improvements for people on low incomes or certain medical conditions.

The Northern Ireland Sustainable Energy Programme provides funding for energy efficiency schemes across Northern Ireland.

What other help is available?

The main scheme for vulnerable and low income households is the Energy Company Obligation (ECO).

This is free or discounted work provided by the big energy companies to help reduce carbon emissions and tackle fuel poverty. You have to meet strict criteria, which typically includes claiming benefits of some kind from the Government.

The scheme is paid for by the Government but delivered by the energy firms themselves, who will factor the discount into the price you are quoted or offer the work free. The scheme is offered across the UK.

For more information, see Simple Energy Advice’s website.  

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Golden Summer Ahead for Property Buyers Following Chancellor’s Statement

This week the Chancellor’s Summer Statement brought welcome good news to the UK property market, signalling the start of a bounce-back in sector recovery. The UK government plans are all about growth, confidence and recovery as we emerge from the Coronavirus lockdown and look to the future.

Let’s take a look at the highlights, what this means for West Sussex property buyers and sellers, and why this year may just be the perfect time to make that move!

What is the Chancellor’s Address?

If you haven’t heard of the summer statement before, you’re not alone! This is a one-off outside of the usual governmental schedule of policy and budget announcements, owing to the disruption that the pandemic has brought across the country.

Rishi Sunak is the Chancellor of the Exchequer, responsible for public spending, taxation and borrowing. Sunak acts as the chief financial minister to the UK government and has over-riding responsibility for the treasury.

The Statement introduces a £30 billion fund, designed to stimulate rapid recovery. This covers a broad spectrum of UK infrastructure, looking at ways to boost employment, help businesses get back on their feet and support people who have been financially affected by Covid-19.

UK Stamp Duty Holidays

Stamp duty (also known as Stamp Duty Land Tax) is the tax payable when you buy property over a particular value.  Currently, you don’t need to pay any stamp duty if your property is costing less than £125,000. There are also exemptions for first-time buyers, although it depends on the value of the property.

Starting from 8th July 2020 until 31st March 2021, the threshold at which stamp duty is payable rises from £125,000 to £500,000. Rates for properties sold at over and above £500,000 are only liable for stamp duty for the proportion of the cost over and above this new limit.

With much speculation about how the government will support UK property buyers and sellers, this comes as great news for both buyers and sellers who have been impacted by lockdown, and looks set to provide a platform for a rapid rebound for the property market!

Green Homes Grant Scheme

Another important announcement for West Sussex property owners is the Green Home Grant Scheme, which will assist homeowners with making improvements to their houses to cut energy bills and make properties more energy efficient.

This scheme will deliver vouchers of up to £5,000 in value, with the government paying around two-thirds of home improvement costs. Funding can apply to all sorts of projects, from insulation and even rumours of new boilers to low-energy lighting, this is yet to be fully confirmed.

Other Announcements

As well as these initiatives to support property buyers and homeowners, the announcement includes a variety of funding directives aimed at getting the UK back on its feet.

While the Green Homes Grant Scheme pledges up to £5k of support, this will extend up to £10k for low-income households.

Social housing will also see an enormous budget allocation coming its way, with a £50 million ‘decarbonisation fund’ to help landlords and managers upgrade social housing making it more energy-efficient, and ultimately cheaper to heat and run.

For homeowners who have been considering selling, but have held off due to the cost of improvements, this is a prime time to upgrade for a fraction of the cost, in a seller’s market with the stamp duty holiday making it cheaper than ever for buyers to purchase your property.

What makes it so appealing is that this sort of support has never been seen before, and for property buyers represents a golden opportunity to move forward with relocation plans at a substantial cost saving – but only for a limited time.

Property Owner Factors – The Detail

It’s all too easy to read an announcement and get excited; only to find out it doesn’t apply to you.

So let’s break it down to see how these measures impact you, and what sort of timescales we are talking about.

Stamp Duty Holidays:

Start immediately from 8th July 2020, and last until 31st March 2021

Apply to all residential property purchases that complete in this period

The completion date must fall within those dates to be eligible

Landlords and investors benefit, but are still liable for the additional 3% levy

Buyers of second homes are eligible for these reduced rates, but are also still required to pay the 3% additional tax

In effect – property purchases are now tax-free up to the value of £500,000 for the next nine months, which will make moving home now far more cost-effective than ever before!

As it stands, the scheme will end on 31st March 2021, so if you’re thinking of moving home in the next few months, we strongly recommend getting the ball rolling now – as the completion date must be before then to be eligible for the exemption.

How Much Will the Stamp Duty Holiday Save You?

The previous stamp duty payable for a property over the £125k threshold was 2% up to £250k, and 5% up to £500k – which can add a big whack to your budget on top of the cost of buying a new home!

Raising that threshold to £500,000 means that everybody who buys a property now will save up to £15,000 in taxes, so this is a massive incentive to buy that Chichester property now!

For example, a property costing £700,000 will now incur stamp duty of £10,000 – compared to £25,000 under the old rules. Property costing £1.1m will cost a stamp duty tax of £38,750, a huge drop from the previous rates of £53,750.

The scheme comes into effect immediately from 8th July and will last until 31st March 2021. Sunak estimates that nine of ten property buyers in this period will pay zero stamp duty.

Green Homes Grants:

Starts from September 2020.

Eligible for applications of two thirds and above of the cost.

Applies to homeowners within certain income thresholds.

The home improvement projects that fall within this fund have to be all about energy efficiency – and will support rates of work and employment in those sectors as well as being a help for homeowners looking to make upgrades, but with budgets to balance. That means that you can’t get a grant for general redecoration – but if you’re looking at replacing an old boiler, installing double-glazing, or insulating your home, you can have a big chunk of that cost paid for.

How Are Green Homes Grants Funds Issued?

Funds are issued as a voucher, once the proposed work has been approved. Eligibility depends on your household income, how many dependents you look after, and any other form of income support you might currently be receiving.

As an example, if you’d like to insulate your home and the work will cost £4,000, you will need to pay somewhere around £1,320, with the rest of the cost paid for by the scheme.

Landlords are also in line for help here and may be able to apply for higher proportions of property upgrade costs. Everyone benefits, with more work for contractors, lower energy bills for tenants, and better quality homes for property renters.

Key Information for West Sussex Property Buyers

In a nutshell, Chichester properties are available at heavily-reduced taxation rates for the next nine months – this means buying a property now is a significantly cheaper prospect. This applies to all residential properties, of all values, and stamp duty costs have dropped sharply even for purchases of second homes.

We anticipate the market quickly reaching new heights, where sellers look to take advantage of this opportune time to sell, and buyers move to relocate while such enormous savings are available.

For landlords and existing homeowners, these new grant schemes and support programmes offer an attractive opportunity to upgrade and re-vamp properties. It is always worth bearing in mind the value of a high energy-efficiency certificate on a property, and how appealing this is to buyers who can make a tangible long-term saving in the cost of running their home!

Tod Anstee Ltd is one of the largest and most experienced firms of estate agents in Chichester and West Sussex. If you would like dedicated support and assistance with finding ideal Chichester properties to suit your budget or list a West Sussex property for sale while the stamp duty holiday is available, get in touch with our friendly team and let us help you get the ball rolling!  All our website sales listings include a link to a helpful stamp duty calculator to help you calculate costs!

Source - https://www.todanstee.com/latest-news/property-buyers-chancellors-statement/