Government launches EPC grants for landlords with rent increase ban

Government launches EPC grants for landlords with rent increase ban

9:44 AM, 2nd April 2025, About 2 months ago 29

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A new funding scheme for energy-efficiency improvements has opened to landlords in England, but landlords will be forced not to raise rents during the EPC works.

The Warm Homes: Local Grant scheme, which opens this week, will allow landlords with properties rated EPC D to E to receive up to £30,000 for improvements on their first rental property and up to £15,000 for additional rental homes.

However, the grants are only available to tenants who are on low-incomes and only in certain postcodes.

Landlords need to meet criteria

The government says landlords with properties rated EPC F or G will need to show proof of an exemption to qualify for the grant, otherwise, they won’t get the funding.

The government adds that they are focusing on improving the “energy performance and heating systems of low-income homes, where help is needed most”.

To apply, landlords need to meet three criteria:

  • Eligible postcodes: These are based on deprivation factors – you can check out a full list here
  • Benefit claimants: Tenants who are in receipt of certain benefits, including Universal Credit and housing benefit or who meet the existing ECO4 Flex Criteria.
  • Low-income households: Households whose gross income is below £36,000 a year.

The government says it will be up to councils to verify that applicants meet these criteria.

There’s no cap on the number of properties a landlord can apply for, but there is a maximum total payout. The upper limit is £315,000, which includes any previous grant funding received for upgrades.

Not result in an increase to rental prices paid by tenants

A document by the Department for Energy Security and Net Zero, reveals landlords won’t be allowed to increase rent during the energy-efficiency improvements.

The documents says: “Should landlords be eligible for Warm Homes: Local Grant funding, there is an expectation that energy performance upgrades and/or low carbon heating improvements will not result in an increase to rental prices paid by tenants.

“The Authority will carry out monitoring of this and reserves the right to amend policy to adjust or remove support to landlords/the PRS should evidence of rent increases be detected.

“The Authority also reserves the right to make policy changes to PRS support, should there be any changes in the wider policy landscape.”

All landlords who apply will be added to a central database of those taking part in the Warm Homes: Local Grant scheme.

Huge swathes of landlords will be left in the cold

The National Residential Landlords Association (NRLA) has previously said they welcome the funding but believe support should also be available for landlords who don’t qualify for the scheme.

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.”


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TheMaluka

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11:25 AM, 2nd April 2025, About 2 months ago

As is usual the generous grants are available but few will qualify.

Beaver

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11:54 AM, 2nd April 2025, About 2 months ago

Reply to the comment left by TheMaluka at 02/04/2025 - 11:25
I've got an open mind about not raising rents during works if somebody's prepared to give me a grant...seems fair enough...but mostly I find with grants that I'm not eligible.

Does anybody know anything about the criteria for eligibility? For example, what's the definition of 'first rental property'.

Andy

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11:56 AM, 2nd April 2025, About 2 months ago

Pure madness. The beneficiaries of these grants will be the local trades, who'll inflate prices because the government is paying. Taxes will soon be rising to fund initiatives like this and all with no idea whether £30k spent on an old property will ever realise at least £30k of energy savings.

Raz

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13:45 PM, 2nd April 2025, About 2 months ago

How does the " not raising rents during improvements" work?

Just for the day it takes to install solar panels? Or for a set period afterwards?

What happens if the low income tenant moves out in that period? Or you decide to sell?

Beaver

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13:49 PM, 2nd April 2025, About 2 months ago

Reply to the comment left by Raz at 02/04/2025 - 13:45
As far as I can tell I won't be eligible for these grants, which is normally what happens.

It would make far more difference if you were able to claim roll-over relief and incorporate for any size of rental business (even just one property) and if capital allowances were introduced allowing you to invest in EPC improvements and other energy improvements.

I can't see these grant proposals making any significant difference.

Tan

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14:10 PM, 2nd April 2025, About 2 months ago

I assume for a lot of landlords they will be making EPC improvements when their property is empty, so the grants are useless.
If they want to help, and stop landlords increasing rent, then we should be allowed to claim the costs against our income, thus reducing the tax implication.
Also, how does this all work with a HMO? The EPC is on the whole building, but there are different tenants with different incomes.

Slooky

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17:45 PM, 2nd April 2025, About 2 months ago

I have 2 flats where the tenants have gross income below 36K and I'm sure they would both like secondary glazing as would I. I can't get the spreadsheet to work which gives a list of eligible postcodes.
I might just apply anyway because I'm sure it's too good to be true and I bet a grant still won't pay for secondary glazing despite the fact listed buildings are not allowed double glazing.

Desert Rat

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17:51 PM, 2nd April 2025, About 2 months ago

Yet another post code lottery!

I've already done all I can to make my properties a C, any that don't make it will be sold.

If the government want me to do it, at least make it tax deductible to give me an incentive to do it.

Failing that the houses will be sold and the council can try to house them.

I've had enough of being a political scapegoat for a government that is trying to destroy the PRS and blame it on greedy landlords.

I will happily start kicking out tenants and tell them why and invest in the stock market while it is down and wait for it to increase in value.

No more phone calls at 10pm to say a light is not working and I need to change a bulb....

Cider Drinker

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18:27 PM, 2nd April 2025, About 2 months ago

“ Eligible postcodes: These are based on deprivation factors “

Seems a lot of homes in the South qualify. Nothing in the North.

Or am I reading the wrong list?

Saul Smart

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23:25 PM, 2nd April 2025, About 2 months ago

Reply to the comment left by Cider Drinker at 02/04/2025 - 18:27
It doesn't make a lot of sense to me. Properties in what are without doubt one of the most deprived areas of my town are ineligible apparently. An experiment with some of the most affluent postcodes in the area return eligible.

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