Prime Minister Rishi Sunak recently made an announcement1 on a number of policies that affect the UK’s path to ‘Net Zero’2 by 2050. Whilst the headline news was primarily the pushback of the ban on the sale of new pure-petrol & diesel cars to 2035, there were some additional announcements that can affect our homes too.
Boilers
Recent years have seen Government policy that traditional fossil fuel boilers were to be phased out, with a requirement for a transition to heat pumps from 2026, meaning that should a gas or oil boiler be due for replacement, then an alternative would need to be sourced.
The 2026 deadline has now been pushed back to 2035 as part of the Government’s latest announcement, allowing additional time for UK homeowners to install gas or oil boilers into their homes. The Government also announced an increase in grants available to help homeowners transition to heatpumps, from £5,000 to £7,000.1
The decision has received mixed reactions, certainly those most affected by the change to a heat pump could be those in more rural areas, where it’s reported that some homeowners may face costs of up to £40,000 to replace their existing fossil fuel boilers for example.3
Generally the transition to a newer heating system can bring certain savings for the homeowner, and the change in the deadline to 2035 gives extra time for UK homeowners to future-proof and upgrade their property to a modern gas or oil boiler before they too are phased out.
Recent findings show that modern boilers are up to 92% more energy efficient, compared to between 65%-85% efficiency in older boilers, so an upgrade could possibly save you money on heating bills and help to reduce your own carbon footprint. The installation fees of a new boiler, on average, cost between £1,500 to £2,500, which is cheaper than installing low-carbon heating system alternatives.4
It’s unknown whether a future Government may overturn the recent EPC announcement, however for the time being it can help to make a buy-to-let purchase more appealing and to some extent reduce the uncertainty in this area.
The Financial Conduct Authority does not regulate some forms of Buy to Lets. Your home/property may be repossessed if you do not keep up repayments on your mortgage.
Sources
- BBC (2023) Rishi Sunak: Cars, boilers and net zero – key takeaways from PM’s speech. Available at: https://www.bbc.co.uk/news/uk-66871073 (Accessed 22 Sep 2023)
- BBC (2023) What is net zero and how are the UK and other countries doing? Available at: https://www.bbc.co.uk/news/science-environment-58874518 (Accessed 22 Sep 2023)
- The Telegraph (2023) The oil boiler ban pushed back to 2035. Available at: https://www.telegraph.co.uk/money/net-zero/how-to-sidestep-the-planned-2026-oil-boiler-ban-heat-pump/ (Accessed 22 Sep 2023)
- BoilerGuide (2023) The Future of Boilers Explained. Available at: https://www.boilerguide.co.uk/boilers/future (Accessed 22 Sep 2023)
