Government launches EPC grants for landlords with rent increase ban
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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Member Since May 2015 - Comments: 2188 - Articles: 2
6:09 PM, 6th April 2025, About 1 year ago
Reply to the comment left by Beaver at 06/04/2025 – 17:15
That’s all right as long as she leaves the billionaires alone.
Member Since May 2018 - Comments: 1999
10:25 AM, 7th April 2025, About 1 year ago
Reply to the comment left by TheMaluka at 06/04/2025 – 18:09
The billionaires are already going, and Rachel already knows that: That’s why she wants his pension.
Member Since September 2024 - Comments: 4
1:07 PM, 12th April 2025, About 12 months ago
Reply to the comment left by Andy at 02/04/2025 – 11:56
I think the improvements are supposed to be about saving but more importantly about emmisions.
The cliimare change is very much driven by domestic use as well as the more eye catching stuff, like private jet flights.
Member Since April 2023 - Comments: 174
2:14 PM, 12th April 2025, About 12 months ago
I said I would update after I had applied for the grant because one of my flats was eligible. I received a phone call from them and they said the grant is only for insulation nothing else. I wanted secondary glazing because we only have single glazing so no grant for me
Member Since May 2018 - Comments: 1999
9:01 AM, 14th April 2025, About 12 months ago
Reply to the comment left by Slooky at 12/04/2025 – 14:14
I think part of the reason for this is that the companies managing the grant process are selling insulation.
Member Since April 2023 - Comments: 174
9:05 AM, 14th April 2025, About 12 months ago
Reply to the comment left by Beaver at 14/04/2025 – 09:01
Yes and also new EPC’s only push insulation now.
Member Since September 2018 - Comments: 3508 - Articles: 5
9:20 AM, 14th April 2025, About 12 months ago
Reply to the comment left by Beaver at 14/04/2025 – 09:01
the ideas is ‘wrap’ approach first. In other words insulation first then other things possibly.
The reality is they only want to provide grants at the lowest possible level, so if you have a benefits tenants/low earner in a E or D then you MAY qualify for other stuff IF insulation is low first and that can be topped up/applied.
You MAY get a grant for internal/external insulation BUT it comes with caveats. All other works you will have to pay for (so making good, redec etc) this can be quite hefty if the only walls for possible internal insulation are a kitchen/bathroom etc. Then there is the disruption. It can be cost/time/hassle ineffective when tenant is in best to do when empty…but then of course you don’t have that benefit tenant in situ so becomes invalid.
External insulation is also a nightmare and may simply not be suitable even if grant computer says ‘Yes’.
These companies do not get paid until after the work is done and many have issues getting money out of the government so many don’t want to do this work. How many companies are prepared to subsidise the supplies/labour etc and have no idea when they get paid back?
I have lots of benefit tenants but because there are a D and in flats, impossible to get any other grants to upgrade anything. The building is solid wall. Freeholders are 2 individuals and one says no anyway.
Looks like I shall be claiming exemptions in the future. I’m certainly not ripping out perfectly good boilers and GCH to put in electric heating,. The cost to run for the occupant is worse and the changes of them heating sufficiently every room .
Member Since April 2023 - Comments: 174
12:47 PM, 14th April 2025, About 12 months ago
Reply to the comment left by Reluctant Landlord at 14/04/2025 – 09:20
We also can not have the insulation inside or out. We are a listed building so it wouldn’t be allowed. But I would welcome money for the secondary glazing and I think it’s wrong that this is not on offer Even when they were offering grants for double glazing. It was worth another punt because there is no way we could afford the secondary glazing on our windows because they are huge. I know we will get an exemption but I would rather have better windows!
Member Since May 2018 - Comments: 1999
3:28 PM, 14th April 2025, About 12 months ago
Reply to the comment left by Reluctant Landlord at 14/04/2025 – 09:20
I also think that I shall be claiming exemptions in the future. I’m also not not ripping out perfectly good boilers and GCH to put in electric heating for the same reasons. The tenants don’t even want it.