Flanders will reform the premiums and financial aid it grants households to renovate their homes. Priority will be given to low and middle-income households to curb the trend of excessive use by "richer" applicants.
The Flemish Government has reached an agreement on reforming the renovation and energy premiums Mijn VerbouwPremie (My Renovation Grant). Some premiums will disappear, and more support will go to those who are struggling. According to Housing Minister Melissa Depraetere (Vooruit), the support often ended up going to people who could renovate even without the support, VRT NWS reported.
"We need to use the premium in a more targeted way. The focus should be on low and middle incomes," she said. This will include young people buying their first property, single parents and pensioners. "They are most likely to live in poorly insulated homes with the highest energy bills."
Based on income
The government has, therefore, decided that the lower a household's income, the more it will contribute to renovation costs. Specifically, the plan is to work with four income groups instead of the current three from 1 July. People with the lowest incomes (so-called "target group" 4) will be able to receive an increased renovation grant of 50% of the invoice amount. This will be reduced to 35% for people in group 3, and 25% in group 2.
Finally, target group 1 can count on a maximum of 20% of the total invoice amount being reimbursed. They can also only apply for a premium for a limited number of square metres.
"Everyone can receive a subsidy, but the excesses had to go," Depraetere said. "People with large, detached villas with large roofs received an unlimited subsidy per square metre. We no longer do this. We are stricter now." The changes are being implemented because the region can no longer count on European funding next year.
People with a second home automatically fall into the highest income category, unless they rent out their home as social housing, in which case they end up in target group 4. This measure aims to incentivise people who rent out their homes below market price to also carry out renovations.
Discontinued grants
Additionally, people can only apply for the grant if they are carrying out energy-friendly renovations. For example, premiums for new stairs, a new ceiling or the demolition of an interior wall, will now be discontinued.
People will only receive a grant for work on the roof, exterior walls, floor or windows if they also install additional insulation. Households with damp issues or who need to replace pipes and drains can still receive a grant if they fall into target group 3 or 4.
Meanwhile, the subsidies for heat pumps and heat pump boilers will continue, as they are considered an important lever for heating in a more climate-friendly way. The subsidy for solar boilers, however, will be discontinued.
