New funding for EPC improvements – but it’s not enough for landlords

A new funding pot has been announced by the government to support energy efficiency improvements in England, but many landlords may still be left out in the cold, the National Residential Landlords Association (NRLA) warns.

The ‘Warm Homes: Local Grant’ scheme will provide grants of up to £30,000 for landlords to improve their first rental property and up to £15,000 for additional properties.

However, the funding is capped at a maximum of £15,000 per home for energy performance upgrades and £15,000 for low carbon heating.

Only landlords with properties in eligible postcodes, whose tenants are benefit claimants or low-income households, will be eligible for the grants.

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

Scheme excludes many landlords

The NRLA has welcomed the move but criticised the scheme for excluding many landlords.

Meera Chindooroy, the NRLA’s deputy director for campaigns, said: “The nature of the scheme means that huge swathes of landlords across the country will be, quite literally, left out in the cold.

“It’s also unclear if there will be enough to pay for improvements across the areas already selected to benefit.

“The PRS has some of the oldest, and hardest to improve, properties within the UK housing stock and what we would like to see is a comprehensive package of financial support available to landlords across the board.”

Money distributed by local authorities

To qualify for government grants, properties must have an EPC rating between D and G and the grants will be distributed by eligible local authorities.

Energy Security Minister Ed Miliband has announced plans to increase the minimum energy efficiency standard for rental properties to a C rating by 2030.

To be eligible for the grants, households must meet one of the following criteria:

• Eligible postcodes: Based on deprivation factors.
• Benefit claimants: Tenants receiving benefits such as Universal Credit or housing benefit
• Low-income households: Gross income below £36,000 per year.

Councils will verify that grant applicants meet these requirements.

Landlords seeking Warm Home grants

For landlords seeking Warm Homes: Local Grants, the NRLA says they must:

• Share their details: Provide permission for their information to be stored on a central database
• Participate in surveys: Agree to support evaluations of the grant programme
• Adhere to funding limits: Ensure that total grant funding received does not exceed £315,000.

Eligible local authorities can apply for funding starting in October.

There is no limit on the number of properties a landlord can claim for, but the maximum grant amount per property remains £315,000, including any previous grants received.

More information is available from the Department for Energy Security & Net Zero which has published guidance and a list of eligible postcodes.

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