Aims to help homeowners save money on energy bills and improve home energy efficiency.
The Warm Homes: Local Grant is an exciting new government initiative, starting in April 2025, replacing the previous Local Authority Delivery (LAD) programme. It provides funding for energy performance upgrades and low-carbon heating systems such as insulation and air source heat pumps to qualifying low-income homeowners and properties across England. This scheme is part of the broader Warm Homes Plan, designed to combat fuel poverty and contribute to the UK's Net Zero goals.
However, Propertymark says it is concerned that the support for the private rented sector (PRS) is insufficient.
While the government has confirmed that landlords will be expected to meet EPC C standards by 2030, the financial support available to them is limited and subject to strict eligibility criteria.
The previous Conservative government said that non-domestic property must meet EPC B by 2030, but the energy secretary Ed Miliband has told Propertymark that the government is still considering if this policy was appropriate.
Propertymark’s policy and campaigns officer, Tim Thomas, said: “The UK Government must level the playing field and offer parity for private landlords.”
He adds: “With the clock ticking the government must also end the uncertainty on PRS exemptions and requirements for commercial landlords.”
Jo Westlake said: “I’m a huge fan of solar panels but the tax treatment is completely nonsensical. In a bills inclusive HMO imported electricity is a deductible expense but solar panels to create your own electricity are a capital improvement. Solar panels are very popular with tenants who pay their own bills as they can clearly see financial benefit. I'm assuming a heat pump would also be treated as a capital improvement (as one doesn't previously exist) whereas a replacement gas boiler would be fully tax deductible.” also, “Tenants are going to be very wary of heat pumps after so much media negativity, so we would have less choice of tenants. Why would we rush to install one, especially if we are having to pay for it out of tax paid income? Clarity, and no fees for eco installations would go a long way.”
Qualifying criteria for landlords
The qualifying criteria for landlords include having a tenant currently living in the property who is in receipt of a means tested benefit.
Or if their household gross annual income is less than £36,000.
If a landlord has a property where the tenant qualifies, they could receive full funding for the first property capped at £15,000 but would have to contribute 50% of the funding for additional properties. Landlords or their agents would also be expected to sign a declaration saying they will not increase rent due to the funding.
Key Details:
Eligibility:
Household income of £36,000 or less or receiving means-tested benefits.
Energy Performance Certificate (EPC) rating of D, E, F, or G.
For privately owned (owner occupied or privately rented) in England
Funding:
Up to £15,000 per property for energy performance upgrades (e.g., insulation, double glazing).
An additional £15,000 for low-carbon heating systems, such as heat pumps.
Landlord Participation:
Landlords can receive full funding for one property and 50% funding for subsequent ones, provided tenant income criteria are met. They must also agree not to increase rents directly due to these upgrades.
Implementation:
Managed by local authorities, with funds distributed based on expressions of interest. This ensures local areas can tailor upgrades to specific needs:
For more information or updates, you can visit the Energy Saving Trust or the UK Government's website for documents about the plan, help and support or how to apply, Warm Homes: Local Grant. and for Overview of the plan.
You can find the guidance PDF file on Warm Homes: Local Grant guidance.
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