There has been significant discussion in recent months about EPC requirements, with the proposed minimum standard rising from an E to a C. Landlords will need to ensure their properties meet this new threshold, which can also help boost property value and reduce tenants’ energy costs. Although these legislative changes may seem like an expensive obligation, the government has introduced a UK landlord grants scheme to support the transition. These incentives can cover most, if not all, energy-efficiency improvements; offering funding ranging from £7,500 to £30,000 per property.

Key UK Grants for Landlords to Improve EPC Ratings

 1. Warm homes: Local grants (England)

The warm homes local grant can be seen to be the most generous grant that the government are providing to UK landlords and its administered by all local authorities, covering insulation, glazing and low-carbon heating.

     Funding:

• Up to £30,000 for the first rental property,
• Up to £15,000 for any additional properties.

     Eligibility:

• EPC rating must be a D to a G,
• Tenants must be low income (less than £36,000 annually or receiving benefits),
• Property must be in eligible postcode if other categories do not apply.

Important note: Apply through locals council warm homes programme. 

2. Energy Company Obligation (ECO4 / ECO+)

The Energy Company Obligation requires energy suppliers to improve the efficiency of low preforming homes and they cover, Cavity wall insulation, Solid wall insulation, Underfloor insulation, Heat pump installation and First-time central heating.

     Eligibility:

• Rental properties with EPC rating D-G,
• Tenants typically need low income or receiving benefits to meet criteria.

Important note: Apply through participating energy suppliers.

3. Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme is a simple popular scheme that covers installing an air-source or ground-source heat pumps.

    Funding:

• £7,500.

    Eligibility:

• Landlord/ homeowners in England or Wales.

Important Considerations for Landlords

- Some grants like the Warm homes: Local grant requires landlords to avoid raising rent due to the improvements being funded via the scheme. 

- The new regulations may enforce these requirements to be done by 2028.

Additional reads:

A Landlords guide to meeting the Decent home standard

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