Most Inefficient Homes to get Fully Funded Upgrades from Local Grant Scheme

Posted on December 20th, 2024

The UK Government has published details of their Warm Homes Plan to upgrade five million homes in England to ‘EPC C’ over the next five years. Beginning in April 2025, the Warm Homes: Local Grant will be delivered by Local Authorities and provide up to £15,000 each for low-carbon heating and energy performance improvements in owner-occupied or privately rented homes.

Grant funds will be targeted at low-income households living in properties with an EPC rating of D-G, and there will be nothing to pay for owner-occupiers or tenants. The award can be spent on replacing heating systems with low-carbon alternatives such as heat pumps or high-retention storage heaters, and on energy performance or smart measures such as insulation, double glazing, and solar panels.

Requirements for PRS homes

Properties rated in EPC bands F and G must have registered exemptions under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 to be eligible for the scheme.

Landlords can have one property fully funded by the Scheme but must contribute 50% towards the cost of upgrades to any additional homes. They must then sign a declaration to confirm they will not raise rents as a direct result of the upgrades being installed.

Three routes to eligibility

A household can be approved for the scheme if they meet the criteria of one of three pathways:

• Homes in pre-approved postcode areas identified as the most deprived in England.
• Households who receive certain means-tested benefits, including Housing Benefit and Universal Credit, or who are identified as vulnerable.
• Households with a gross annual income below £36,000, or the equivalent after housing costs.

Homes that cannot meet ‘EPC C’

The UK Government has stated that the primary objective of the Warm Homes: Local Grant is to progress the reduction of fuel poverty and lowering annual energy bills for low-income households. Therefore, if a property can’t be brought up to ‘EPC C’ within the cost cap, it can still benefit from improvements that offer value for money and achieve the biggest bill savings for the occupiers.

Full details of the scheme can be found on the gov.uk website; Warm Homes: Local Grant – GOV.UK

Article abridged from Propertymark