Homeowners could be forced to spend thousands making properties eco-friendly in order to remortgage or sell under Government’s new green plans
- Government plans will encourage mortgage lenders to favour greener homes
- This means those in older properties could struggle to sell or remortgage
- Making a home more eco-friendly can cost thousands
Home owners could be forced to make their home more energy efficient in order to sell it under the new Government Net Zero stategy unveiled today.
Mortgage lenders would be forced to keep figures on how energy efficient the homes they lent money against are and disclose these to the Government. They would also need to set themselves targets to improve how well-insulated the homes on their books were.
This means properties that didn’t meet these standards could become tricky or even impossible for homeowners to remortgage on or sell.
Boris Johnson launched the Net Zero Strategy today and claimed Government was ‘taking bold action’ against climate change
Some lenders, including Virgin Money and Nationwide, are already offering incentives for those with greener homes to try and push up the number on their books.
The plans were published in the Net Zero Strategy which outlines Boris Johnson’s plans to meet climate targets such as reaching net zero carbon by 2050. They are also part of an ongoing government consultation.
If implemented they could mean that homeowners face having to make costly energy efficiency improvements if they want to sell their properties.
The cost of installing an eco-friendly ground source heat pump for example can be more than £20,000.
Energy efficiency is measured by EPC ratings which rank properties from A, the most efficient, to G, the least.
Those in older homes and period properties find it harder to make their homes greener. Almost 1.7 million homes in England and Wales with an EPC rating between D and G cannot be improved to reach a C rating, according to Rightmove.
The Net Zero Strategy, published by the Department for Business, Energy and Industrial Strategy, said: ‘We are working with mortgage lenders to support homeowners to improve the energy performance of their properties.
‘Government is also exploring the case for a further green home finance innovation programme, focused on supporting lenders to develop green finance products targeted at consumer types who will be impacted by future regulation.’
Prime Minister Boris Johnson said: ‘The UK’s path to ending our contribution to climate change will be paved with well-paid jobs, billions in investment and thriving green industries – powering our green industrial revolution across the country.
‘By moving first and taking bold action, we will build a defining competitive edge in electric vehicles, offshore wind, carbon capture technology and more, whilst supporting people and businesses along the way.’