Energy efficiency: Landlord funding pot now live

A new funding pot to support energy efficiency improvements in England is now open for applications.

The ‘Warm Homes: Local Grant’ scheme was announced last autumn with funding to be focussed on low-income homes.

Under the scheme, landlords with homes with EPC ratings of D to G can receive up to £30,000 towards improvements to their first rental property, and £15,000 for work on additional homes to let.

Grants, available from today, April 1, will be distributed by eligible local authorities, with the Government stressing the money will be focussed on improving the ‘energy performance and heating systems of low-income homes’ in England, across privately-owned properties.

The funding will be capped at a maximum of £15,000 per home for energy performance upgrades, and £15,000 for low carbon heating. 

Who can claim?

There are currently three different eligibility criteria:

• Eligible postcodes: These are based on deprivation factors – and you can check whether your properties are eligible by clicking here.
• Benefit claimants: Tenants who are in receipt of certain benefits, including Universal Credit and housing benefit or who meet the existing ECO4 Flex Criteria.
• Low-income households: Households whose gross income is below £36,000 a year.

The onus will be on councils to check that those claiming grants fall into one of these brackets.

There won’t be a limit on how many properties a landlord can claim for, however there is a maximum amount that can be paid out. This upper limit is £315,000 and includes any previous grant funding claimed for improvements.

As a landlord, what do I need to do? 

The first thing to do is to check funding is available in your area, as outlined above.

Landlords with low-income tenants and a property below an EPC C rating can apply if they:

• Express permission for their details to be shared and stored on a central database of landlords participating in the Warm Homes: Local Grant
• Agree to support DESNZ-led surveys or evaluations regarding PRS uptake in the Warm Homes: Local Grant
• Confirm that the Minimum Financial Assistance threshold of £315,000 will not be exceeded by the landlord receiving the proposed assistance
• Confirm they do not intend to raise rents as a direct result of the upgrades being installed (using the template provided ahead of delivery)

The NRLA has welcomed the move, but would like to see support extended to those landlords who do not fall within the remit of the scheme. 

The Government is currently consulting on plans to introduce a new, minimum energy efficiency standard in the private rented sector from 2028. This new standard will not be set until 2026, and landlords are advised to consider this before undertaking any energy efficiency works.

Undertaking a retrofit assessment may help to identify whether any required works could be funded using the Warm Homes Grant.

More information

For full details of the grant scheme click here. 

For a list of local authorities that successfully applied for funding click here.

For more information on the NRLA’s ongoing energy efficiency campaign click here.