In September, the government announced a new funding pot to support energy efficiency improvements for rental properties in England with an EPC rating of D to G, with cash grants available for low income homes.
The ‘Warm Homes: Local Grant’ scheme will provide landlords with up to £30,000 for improvements on their first rental property, and up to £15,000 for work on additional rental properties. Landlords will need to contribute 50% of the funding for improvements made to their additional properties. Note that there’s no limit on the number of properties a landlord can claim for, although the maximum that can be paid out to any single landlord is £315,000.
A maximum of £15,000 per home will be made available for energy performance upgrades, with £15,000 available for low carbon heating.
Who’s eligible for the Warm Homes: Local Grant scheme?
Eligibility for the scheme depends on three factors:
- The property must be located within an eligible postcode. This is based on deprivation factors—find out more here.
- Tenants are receiving certain benefits, such as Universal Credit and housing benefit, or who meet ECO4 Flex Criteria.
- Total household income below £36,000 per year.
Note that a household only needs to meet one of these criteria in order to qualify, not all three. It will be the responsibility of the local authority to assess eligibility for properties claiming the grant.
When does the scheme start and how long does it run for?
Tenants and landlords will be able to claim a Warm Home grant from 1st April 2025, and the policy guidance states the government expects the scheme to run for 3-5 years, although this will be “reviewed following the spending review.”
What do landlords need to do?
Although the grants are not yet available, landlords that own properties with EPC ratings of D to G should first check to see if the scheme is available in their area. Eligible councils will be able to express an interest in accepting the funding this month (October 2024).
There are also three things a landlord must do to take advantage of the scheme:
- Allow for their details to be shared and stored on a central database of landlords taking part in the scheme.
- Support Department for Energy Security and Net Zero-led surveys or evaluations in regards to PRS uptake of the scheme.
- Confirm that the Minimum Financial Assistance threshold of £315,000 will not be exceeded by the landlord.
How we can help
If you’re a landlord and want support with understanding the funding available to you, or you’d like help with managing your finances better, here at Warr & Co we have years of experience of delivering first-class accounting services for landlords.
Our expert team of landlord accountants will ensure you always stay compliant and tax efficient, regardless of whether you only rent out a single home or boast a large portfolio of properties.
To find out more, book your free landlord accounting consultation today.
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