Green home grants 2024: What support is available for landlords?

Buyers are prioritising energy efficiency in the current market, while the government also clearly has long-term sustainability in mind. Many property investors and landlords will likely be thinking about green home grants for 2024.

The process of making a property greener can be costly, and time-consuming, however. Fortunately, public support schemes are available to investors for these issues.

In recent years, the main supportive programme available to landlords was likely the Green Homes Grant voucher scheme. This scheme provided grants to homeowners and landlords to make energy-efficient improvements to their assets.

But, this scheme closed to new applicants in 2021, and the vouchers can no longer be redeemed. Guidance for the scheme was officially withdrawn in 2023 – there is no “official” Green Home Grants 2024 scheme.

This doesn’t mean landlords have been left without options, though. There are several schemes still available for investors who want to make their properties greener, with a bit of help from the state.

1. The Great British Insulation Scheme

The Great British Insulation Scheme, also known as ECO+, allows eligible applicants to get free or cheaper insulation to reduce their home’s energy bills. This can include cavity wall insulation, solid wall insulation, loft insulation, and more.

The scheme is open to homeowners, landlords, and tenants. Support can be received if the home involved has an energy performance certificate (EPC) of D to G, and is in council tax bands A-D in England, or A-E in Scotland or Wales.

To be eligible, landlords will either need to be a “low-income” applicant or, be a “general” applicant – the latter likely to be more common for property investors. General applicants will only be able to get one type of insulation installed, but may still be able to benefit from lower costs.

To apply for free insulation, investors will need to head to the Government’s online eligibility checker. They’ll need to identify who their energy supplier is, along with their personal details. So long as they’re eligible, they should be contacted by their supplier within a few days to get the ball rolling.

Some of the UK’s biggest energy suppliers participate in this scheme, including British Gas, EDF Energy, and Octopus Energy. There are many elements to this scheme though, and so landlords will likely need to make sure they know its ins-and-outs before moving forward.

2. ECO4

The Energy Company Obligation (ECO) is another government effort similar to the Great British Insulation Scheme which aims to tackle fuel poverty and help reduce carbon emissions. The scheme has seen 4 iterations so far, with ECO4 being the current version in use. It applies to measures introduced in 2022, and will cover a four-year period until 31 March 2026.

Eligible applicants can request support for the installation of various insulations, boiler upgrades, and solar panels. Generally, landlords with tenants who receive specific benefits, or who reside in fuel poverty-stricken areas, will likely be able to benefit.

To check on their eligibility, homeowners will need to head to the ECO4 website, where further guidance can also be found.

3. Home Upgrade Grant – HUG for landlords

This is a green grant scheme specifically designed for landlords and their tenants. Under the scheme, funding is available to improve the energy efficiency of privately rented properties that are off the gas network, or which have no central heating system installed.

Again, to qualify for funding, a landlord’s tenants need to be on certain means-tested benefits, or have a household income of £31,000 or less. The property, as well as being off the gas network, needs to have an EPC rating of D or E.

By utilising the scheme, landlords can save thousands on upgrades made to their home. For instance, installing an air source heat pump in a semi-detached house could cost around £14,000, according to e.on. But, with HUG funding, this could be lowered to £4,667.

It should be noted however, that this scheme is currently only available for homes in specific local authorities. A full list of which can be found on the official HUG website.

4. Green home grants 2024 – alternative options

It’s worth exploring all the options out there for support as each will have varying eligibility criteria. While the HUG for landlords scheme may not be right for one investor, ECO4 may still provide suitable relief.

There is also the Boiler Upgrade Scheme, Electric vehicle chargepoint and infrastructure grants, Disabled Facilities Grants, and more available. Investors will need to figure out what support is right for their circumstances.

Why property investors should care

Property investors, and landlords specifically, should at least be aware of what schemes are available to them. Multiple grants and support initiatives may fall under the “Green Home Grants 2024” umbrella. While more stringent EPC minimum rules may have been scrapped, landlords still need to make sure their properties have an E EPC certificate at a minimum.

There is also a financial incentive to act here. Nearly half of home purchasers would consider paying a premium for a more energy-efficient home, according to Uswitch Mortgages. Meanwhile, having higher EPC ratings in place may boost rents by as much as 4.2%.

Fortunately, many landlords already seem to be on the ball here. Just over half (56%), believe the government and public generally are taking too little action to address climate change.

Some 81% believe that further improvements are required to make their property more environmentally friendly. What’s more, when landlords receive requests from their tenants for green technology, the majority (61%) made an installation as a result.

For many of these green conscious landlords, the various grants available may prove to be of great use over the coming months. Where further financial support is needed however, MFS will be there with flexible funding to help bring their properties up to scratch.