Funding energy efficiency improvements
Some energy efficiency measures can be prohibitively costly to install. Therefore, "relevant energy efficiency improvements" will only be required by law if they can be a paid for as follows:
- Third-party funding is available to cover the full cost of purchasing and installing the improvement(s); or
- Where third-party funding is unavailable, the improvement(s) can be purchased and installed for £3,500 or less (inclusive of VAT) using the landlord’s own funding; or
- The improvement(s) can be installed through a combination of landlord self-funding and third-party funding with a total cost of £3,500 or less (inclusive of VAT).
This means if a landlord of an EPC F or G rated property cannot secure third-party funding (e.g. ECO, Green Deal, or Local Authority grants), they will need to use their own funds to cover the costs of improving their property to EPC E (or as close as possible), but this requirement is subject to a spending cap of £3,500 (inclusive of VAT). In cases where a landlord is unable to improve their property to E within the £3,500 cap, then they should install all measures which can be installed up to the £3,500 cap, and then register an exemption on the basis that “all relevant improvements have been installed and the property remains below E”.
Grants available to landlords
We have a range of grants and assistance available to help landlords make energy efficiency and other improvements to their privately rented properties.
Information and advice
Energy Saving Trust provides impartial information on home energy efficiency and can advise you on any grants and offers that may be available to help you with the costs of installing measures.