On 23rd March, the Chancellor Rishi Sunak delivered his Spring Statement to Parliament, outlining the measures he is putting in place to help weather the storm of inflation and the rise in energy prices, due in part to a growing disassociation with Russian oil and gas supply.
In an effort to combat rising energy prices, Sunak has introduced VAT relief on energy saving measures, cutting the VAT rate to zero on installing solutions such as solar panels, heat pumps and insulation. This presents a great opportunity for homeowners and landlords looking to improve their EPC rating and reduce their monthly energy bills.
Marc Goldberg, Sales Director, welcomed the change:
“The VAT relief on implementing greener energy solutions into homes is very encouraging for the London property market, and a great incentive for homeowners. Buyers have raised expectations for energy efficient homes, both from a carbon neutrality perspective and to help reduce monthly outgoings. For sellers, this is a great opportunity to maximise the appeal of your home to a new generation of environmentally conscious buyers.”
Graeme Young, Lettings Director, highlighted how the incentive can help position landlords favourably in the market:
“Renters also have an increased demand for energy efficient homes, especially with rents continuing to rise for the foreseeable future. For landlords, improving the quality of their new and existing property investments allows them to be best positioned to capture the interest of the highest quality tenants, and perhaps enjoy optimal market rents. In a climate where environmental pressures are creeping into lettings regulations, capitalising on energy efficiency improvements will help with EPC ratings, a particularly hot topic when these regulations will change in 2025.”
For more information on how to make your home more energy efficient, click here.
If you would like to order an EPC with Marsh & Parsons, please contact us.
Other key takeaways from the Spring Statement are as follows:
- Forecasts from the Office for Budget Responsibility (OBR) show the economy will grow by 3.8% in 2022, despite forecasting an expected 6% growth in October 2021.
- GDP is forecasted to grow by 1.8% next year.
- Inflation is expected to average 7.4% this year.
- Fuel duty will be cut by 5p per litre for 12 months.
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