The introduction of Minimum Energy Efficiency Standards (MEES) in 2018 meant landlords whose properties carried an Energy Performance Certificate rating below ‘E’ were unable to legally let their properties unless exempt.

This drive towards more energy-efficient homes is continuing, with MEES regulations moving from a minimum ‘E’ standard to a minimum ‘C’ standard for new tenancies.

However, in 2023 the government scrapped the upcoming EPC changes for rental properties. But with a new government in power do not be surprised if new EPC rules are back on the table.

The good news for landlords is there are grants available to help you bring your rental property up to modern energy efficiency standards.

As a landlord, it is possible to take advantage of ECO4 (the fourth Energy Company Obligation scheme), if your tenant claims certain benefits, if they are deemed to be on a low income, or via medical grounds. This funding is available via the Government ECO scheme, which obligates energy companies to reduce carbon emissions and tackle fuel poverty.

The Boiler Upgrade Scheme (BUS) is available not only to homeowners but also to those who let properties. BUS contributes up to £7,500 towards the installation cost of an air-source heat pump or a ground-source heat pump.

There are also grants for electric vehicle (EV) charging points available to landlords. It can provide up to 75% of the install cost but it is limited to £350 per grant.

The VAT on solar panels, heat pumps, and insulation has also been slashed to 0%, and finance is also available to help spread the cost of the installation.

ECO4 Scheme

This is part of an ongoing government scheme to support low-income households to create more energy-efficient homes, making them warmer while lowering household emissions. 

The energy-efficient measures are available to landlords whose properties have an EPC rating of E, F, or G, and for properties with inefficient electric heating.

ECO4 qualifying benefits for tenants living in the rented property include:

  • Child Tax Credits (CTC) – depends on income threshold*
  • Income based Jobseekers Allowance (JSA)
  • Income related Employment and Support Allowance (ESA)
  • Pension Credit Guarantee
  • Pension Credit Savings
  • Universal Credit (UC)
  • Child Benefit
  • Working Tax Credit (WTC)
  • Income Support
  • Housing Benefit

If the household has an income under £31,000 or someone in the household is vulnerable then you could also get funded energy efficiency upgrades.

Tenants, however, have to apply and then it will need the go-ahead from the landlord.

ECO4 focuses on a ‘fabric first’ approach which means quality insulation will always come first.

Improvements covered by the funding include:

  • Cavity wall insulation

Cavity wall insulation grants are available for rental properties heated by electricity rather than gas, although some properties with gas systems may also be eligible.

  • Internal wall insulation

Rental properties with solid rather than cavity walls, which are also heated through electricity, may qualify for internal wall insulation grants.

  • Loft insulation

If your rental property is heated through electricity and has less than 100mm of loft insulation, it may qualify for a loft insulation grant.

  • Electric storage heating

Rental properties with electric room heaters or no heating systems at all may qualify for a storage heating grant.

  • Central heating

For rental properties that have never previously had a central heating system, a grant may be available to install it for the first time. If the property also qualifies for an insulation grant, this must be done at the same time.

Check your EPC Rating

Energy Performance Certificates

An Energy Performance Certificate (EPC) tells you how energy-efficient a property is. It would be best if you had an EPC  in England and Wales when you’re:

  • selling a property
  • renting out a property
  • building a new property

You must order an EPC for potential buyers and tenants before you market your property to sell or rent.

In Scotland, it is not compulsory to have an EPC rating though there is talk of legislation changing this in the future.

An EPC contains:

  • information about a property’s energy use and typical energy costs
  • steps to improve a property’s energy efficiency and save money

An EPC gives a property an energy efficiency rating from A (best) to G (worst) and is valid for 10 years.

LA Flex

LA Flex, or Local Authority Eligibility Flexibility, also helps private tenants with the installation of home energy efficiency measures.

LA Flex is set out by Local Authorities to help increase the number of properties that can benefit from grants for heating and insulation. This scheme is an extension of the UK government’s Energy Company Obligation (ECO) scheme, and it allows local authorities to set their own criteria for eligibility for funding for domestic energy efficiency measures.

Under the LA Flex scheme, landlords can also be provided with potential home insulation and heating improvements if eligible. 

This includes:

  • A new central heating system
  • Upgrades to the existing heating system
  • Insulation measures

Great British Insulation Scheme

It is also known as the GBIS Scheme aimed at those who do not benefit from the ECO scheme.

This government-funded insulation scheme targets the most vulnerable, supporting those in the least energy-efficient homes in the lower Council Tax bands with an EPC rating of D or lower.

This GBIS insulation scheme will deliver single, low-cost insulation measures rather than multiple measures like ECO4.

This insulation scheme is an essential step to help more people benefit, and will predominately roll out low-cost insulation measures including:

  • Internal wall insulation
  • External wall insulation
  • Cavity wall insulation
  • Loft insulation
  • Installing smart heating controls
  • flat or pitched roof insulation
  • underfloor insulation
  • solid floor insulation
  • park home insulation
  • room-in-roof insulation

The ECO4 scheme began in early 2022 and though it helps target those living in homes with low EPC ratings and eligible benefits, it excludes those living in some of the least energy-efficient homes who don’t benefit from any other government support. This is where the Great British Insulation Scheme comes into place.

Click here to apply

Boiler Upgrade Scheme

The BUS scheme runs until April 2028 providing grants for air-source heat pumps (ASHPs) and ground-source heat pumps (GSHPs).  This grant offers £7,500 to install a heat pump, with the remaining cost being paid by the landlord. 

EV Chargepoint Grant

The EV Chargepoint Grant provides up to a 75% contribution to the cost of an electric car charger and its installation. The grant cap is set at £350 including VAT, per installation.

There are two grants available for landlords to install electric vehicle charge points at a property they own:

  • EV charge point grant

Under the EV charge point grant, each financial year, you can get up to:

  • 200 grants for residential properties
  • 100 grants for commercial properties

These can be across several properties and installations or for one property.