All landlords should be aware of the importance of energy efficiency. Landlords cannot let rental property if it holds an F or G rating, and of course, rental property requires an EPC before the property can be let.

The Green Homes Grant is coming soon, and landlords can apply for vouchers. In most cases, landlords can claim up to £5,000 in vouchers to undertake energy-saving improvements, and in some cases, there is funding of up to £10,000 available for landlords.

Heather Powell is a property partner at Blick Rothenberg, and she said; “The applications for the grant will open in just over a months’ time so buy-to-let landlords need to assess their properties now and get their applications in as fast as possible because thousands of people will apply. It is also likely that the government will tighten energy efficiency regulations still further in 2021, making these works essential for many rental properties.”

Landlords can claim support for energy efficiency improvements

With the grant scheme set to fund £2 from every £3 that is spent by a landlord, there will likely be significant interest in the rental market. The maximum amount offered to a landlord will be £5,000; but this can have a significant impact on the energy-efficiency of a rental property.

Heather explained more about the scheme, saying; “Works can include wall and loft insulation, draught proofing and double glazing, all works that should improve the Energy Performance Rating (“EPC”) of a property. Landlords cannot let properties with an energy performance rating of F or G (unless they qualify for an exemption). Landlords should be planning to undertake works that can be done with the grant funding that is being made available. Their tenants will also benefit as they will get a reduction in their annual fuel bills.”

The UK needs to make changes in energy usage

This is an important issue in the United Kingdom, as some of the least heat-efficient properties in Europe are found here. The 27 million properties in the UK generate up to 25% of the greenhouse gas emissions, and energy demand, in the UK, and this is a major concern. The Government is offering these grants in the hope of improving these figures.

With the UK aiming to have net zero greenhouse gas emissions by 2050, a lot of work needs to be carried out in this area.

Heather spoke about how the process will work, saying; “Online applications by landlords will be passed to “registered local tradesmen” to do the necessary works – which the chancellor expects to help generate a further 100,000 jobs in the “Green Sector. There are circa 2.2 million landlords in England, with an average of 1.8 properties each - a total of 3.96 million buy-to-let properties.”

Heather continued by saying; “If landlords applied for grants to improve the energy efficiency of just 25% of their properties, and got an average grant of £3,300 for insulation, the Green Homes Grant funding would be £3.27bn, and 990,000 homes would have been improved.”

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