The Government has confirmed cash will be available to support low-income households when it comes to making energy efficiency improvements, but is more needed to bring properties up to scratch across the board? James Kent (pictured), the NRLA’s Chief Innovation Officer and founder of the digital compliance platform Safe2, explains more.

A new funding pot has been announced to support energy efficiency improvements in England.

The money will be distributed through the ‘Warm Homes: Local Grant’ scheme, with landlords eligible to receive up to £30,000 towards improvements to their first rental property, and £15,000 for work on additional homes to let.  

So far so good.  

However, the cash will not be available across the board, but only in certain pre-selected local authority areas and only where the tenant is on a low income or in receipt of benefits.  

The news comes after Energy Security Ed Miliband confirmed a consultation will be launched on plans to increase the minimum energy efficiency standard for rental properties to a C rating by 2030.  

With the PRS, at present, the only housing tenure without a bespoke package to support work to upgrade homes we welcome the funding announcement. Any grant funding to pay for energy improvements is to be welcomed and we are pleased to see the investment is not limited to a single tenure. 

However, what we would like to see is a financial support package available for landlords across the board.

The proposals, as they stand will leave huge swathes of landlords across the country, quite literally, left out in the cold. 

Contrary to popular opinion most landlords are not the ‘fat cats’ the media would make us out to be, with, with almost 70% basic rate taxpayers; meaning affordability is likely to be a much wider issue.

The previous administration had placed a £10,000 cap on the costs of energy efficiency improvements to reach a C grade, however the new government has yet to confirm whether it will introduce its own spending cap.

It’s also unclear at present if there will be enough cash in the pot to pay for improvements in the areas already selected to benefit from funding.  

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.

This plan must also ensure sufficient numbers of tradespeople are in place to undertake the work that will be required. 

While this is undoubtedly a step in the right direction, we now want the Government to reveal the full detail of the proposals, so that landlords can start to plan the works and how to fund them.

How the new funding will work

The funding will be capped at a maximum of £15,000 per home for energy performance upgrades, and £15,000 for low carbon heating. Landlords will be eligible for full funding for the first property and will need to contribute 50% of funding for any additional homes. 

It will be distributed by eligible local authorities, with the Government stressing the money will be focussed on improving the ‘energy performance and heating systems of low-income homes’ with a D to G-rating across privately-owned properties in England.

If a landlord is eligible, they will be expected to sign up to certain conditions including signing a declaration that they will not increase the rent as a direct result of the energy efficiency improvement.  

Who can claim? 

There are currently three different eligibility criteria but only two apply to the private rented sector: 

• Eligible postcodes: Owner occupiers are automatically eligible if the property is located in one of these postcodes.  

• Benefit claimants: Tenants who are in receipt of certain benefits, including Universal Credit and housing benefit or who meet the existing ECO4 Flex Criteria can allow the landlord to qualify for the grant. 

• Low-income households: A PRS property may also apply where the tenant’s gross income is below £36,000 a year. 

The onus will be on councils to check that those claiming grants fall into one of these brackets. 

 More information 

• For full details of the grant scheme click here.  

• For more information on the NRLA’s ongoing energy efficiency campaign click here. 

• Part of the NRLA family, Safe2 is a digital platform providing of all forms of property safety certification. A one-stop-shop for all things compliance, it sends alerts when documents are due to expire, organises inspections and repairs and issues certificates. All NRLA members are entitled to exclusive discounts when using any of Safe2’s services. 

• The NRLA offers a vast range of expertise, resources, and exclusive member benefits and savings, campaigning and championing the interests of landlords. To jjoin our community of more than 100,000 landlords click here.

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