Find out about grants available for landlords to fund energy-efficient improvements to their rental properties.
Energy-efficient properties are more attractive to tenants. Improving the energy efficiency of your rental property also reduce the bills you need to pay during void periods, and can improve your property’s value.
There may also be a legal requirement for some landlords to make their properties more energy efficient. On 1 April 2018, it will become illegal to let a property with an EPC rating of E or F.
Energy saving grants and funding
As part of energy-saving governmental initiatives, funding is available to improve the energy efficiency of owner-occupied properties, commercial properties and private rental properties.
Green Deal Home Improvement Fund
Note: the Government has announced the withdrawal of funding for the Green Deal Finance Company (GDFC). If you are making repayments for improvements that have already been made, you will not be affected by this change; if you are in the process of arranging improvements, you should contact your Green Deal provider. Visit the GOV.UK website for more details.
The Green Deal launched on 1 October 2012, and assessments started taking place at this time. The second round – the Green Deal Home Improvement Fund – launched on 9 June 2014.
The Green Deal Home Improvement Fund is some £120 million that has been set aside to allow landlords or tenants to claim up to a maximum of £7,600 towards the cost of energy-saving renovations. The grants will be issued on a ‘first come, first served’ basis.
You or your tenant can apply for the Home Improvement Fund if both parties agree. The money will go to whoever funds the majority of the work.
To be eligible, all of the following must apply:
- The property you are improving must be a domestic property located in either England or Wales
- You must have an Energy Performance Certificate or Green Deal assessment that is less than two years old
- The improvements must be made by a Green Deal provider or registered installer
Only certain improvements are covered by the scheme. In total, you can claim:
- 75% (up to £6,000) of the cost of installing solid wall insulation
- Up to £1,000 towards the cost of installing any two qualifying improvements
- Up to £500 if you apply within one year of purchasing your property
- Up to £100 towards the cost of your Green Deal assessment, provided you go ahead with the works
Landlord’s Energy Savings Allowance (LESA)
The Landlords Energy Savings Allowance (LESA) scheme, which allowed landlords to offset up to £1,500 of qualifying energy efficiency expenditures against taxable rental income, ended on 6 April 2015.
Renewable Heat Premium
The Renewable Heat Premium ended on 31 March 2014. Landlords can now apply for the Domestic Renewable Heat Incentive instead. See below for more details.
Domestic Renewable Heat Incentive
The Domestic RHI awards landlords of either residential or commercial properties seven years’ worth of quarterly payments for installing renewable heating systems and abiding by the rules of the scheme. Find out more about the access to the Domestic Renewable Heat Incentive for landlords at www.ofgem.gov.uk.
Warm Front Scheme
The warm front scheme ended on 19 January 2013 and is no longer available.
Local authority grants
Grants might be available from your local authority. The eligibility criteria tend to be very strict; grants are often means-tested and issued with the purpose of making your property ‘fit for habitation’. Citizens Advice offers more information on grants and loans available from local authorities.
Empty Homes Grant
Bidding for empty homes funding closed on 25 March 2013, and Empty Homes Grants are no longer available.
Disabled Facilities Grant
You can apply for a Disabled Facilities Grant if your tenant is disabled and requires changes to be made to the property in order to have freedom of movement and access to essential facilities. This can involve adapting lighting, power and heating controls, widening doorways or providing additional cooking or sanitation facilities.
A statutory limit of £30,000 for landlords in England applies. The limit is £36,000 for landlords in Wales and £25,000 for Landlords in Northern Ireland. Disabled facilities grants are means-tested.