EPC grants for landlords launched

If you’re a landlord, you may be interested to learn that government has launched something called the Warm Homes: Local Grant scheme. This is essentially an EPC grants scheme for landlords and homeowners who meet certain criteria.

What is the new EPC grants scheme?

The new EPC grants scheme offers free energy saving improvements for certain private homes. You can use the grant to pay for items like wall, loft and underfloor insulation, air source heat pumps, smart controls or solar panels.

The scheme is open to properties in England owned by householders or landlords. The property must have an Energy Performance Certificate with a grade of D, E, F or G. If a landlord’s property is graded as F or G, it must have registered exemptions under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. This is because funding can’t be used to make properties compliant with existing regulations (private rental properties must have a minimum rating of E).

Who is eligible for the EPC grants scheme?

There are three separate eligibility criteria to qualify for the scheme. You only need to meet one, not two or three.

• Low-income households. Homeowners or tenants with a gross annual income of under £36,000 per year.
• Benefit claimants. Homeowners or tenants who receive certain benefits, including Universal Credit or housing benefit.
• Properties in eligible postcodes. Essentially, these are homes in more deprived areas. You can consult a full list here (Excel file).

How much can landlords get?

Landlords can receive up to £30,000 in EPC grants towards improvements in their first rental property. A maximum of £15,000 can go towards energy performance upgrades, and the same amount towards low carbon heating.

This maximum overall grant is also limited to £15,000 for subsequent properties.

Eligible local authorities will distribute the grants.

What do landlords have to agree too?

Landlords need to make three declarations if they want to benefit from the new EPC grants scheme. These are:

• Express permission to include their details on a central database of participating landlords
• Agreement to support Department for Energy Security and Net Zero (DESNZ) led surveys or evaluations concerning private rental sector uptake of the scheme.
• Confirmation that the landlord won’t receive more assistant than Minimum Financial Assistance threshold of £315,000.

In addition to this, landlords must declare that they ‘do not intend to raise rents as a direct result of the upgrades being installed’.

Should I apply for an EPC grant?

If you are a landlord and you qualify for an EPC grant, it’s certainly a good idea to use the funding to improve the energy efficiency of your rental properties. Therefore, it’s probably wise to apply for a grant sooner rather than later. Currently, there is no guarantee that local authorities will be able to meet demand.

Unfortunately, many private sector landlords won’t meet the eligibility criteria for a grant. If you’re in this position, you may need to invest significant amounts to make your rental properties EPC compliant, or alternatively you may prefer to sell them on.