This will be passed through to householders in the form of higher prices and fewer tradesmen available to work when needed - on fact this is already a problem in London and will contribute further to rent inflation. It's crazy in my view to do this without a scheme to support replacement of older vehicles which would enable people to switch to newer less polluting vehicles in a much more cost neutral way.
Those higher costs will hit those least able to afford them most so I agree it is regressive.