Boost Your Rental Value: Energy Grants for Landlords

Buyers and renters will pay more for a green home, but retrofitting properties to modern energy efficiency standards is expensive for many landlords.

A study from The Mortgage Works, the buy-to-let brand of lender Nationwide, has found that 16 per cent—one in six—of landlords either cannot afford to or are unwilling to make energy-efficient improvements. This is despite the government's proposal that all rental properties in England have a grade C Energy Performance Certificate (EPC) rating by 2030.

Landlords will be barred from letting homes that fail to make the grade.

Dan Clinton, Head of Buy to Let at The Mortgage Works, said: "There can be long-term gain with green retrofitting through increased property value and improved rental yields. It's hard for many landlords to meet this ambitious timeline to bring their homes up to spec, particularly those who have had to absorb higher mortgage rates and bigger tax bills."

The Nationwide research shows an A or B EPC-rated home is worth up to £19,500 more than a property rated D - the most common rating - while upgrading to a C-rated home adds £6,500 to the value.

Rented homes upgraded to a C rating gain in value and can earn 7 per cent more from rents.

Where to find energy efficiency grants

Several grant-funded schemes offer landlords financial help to make rental homes more energy efficient.

• The** Energy Company Obligation (ECO)** will help landlords with insulation, boilers and heating improvements if the property is EPC rated D to G and rented by tenants on income-based or child benefits. Inquire with the local council. Landlords usually have to pay some of the cost of improvements.

Find out more about The Energy Company Obligation (ECO)

• The **Great British Insulation Scheme (GBIS) **provides loft insulation, wall insulation, and heating controls for homes in England rated EPC D or less in council tax bands A to D. GBIS is also available in Wales to homes with a council tax banding of A to E.

Find out more about the Great British Insulation Scheme (GBIS)

• The Boiler Upgrade Scheme covers heating system upgrades in England and Wales for rented homes with oil, gas or electric heating. Landlords can apply for grants to energy providers to replace a heating system with a biomass boiler or heat pump.

Find out more about the Boiler Upgrade Scheme

• A Home Upgrade Grant helps owners, including landlords, to apply for insulation and energy efficiency improvements to homes EPC-rated D or lower without mains gas heating, provided the annual household income is less than £31,000 a year. Local councils handle applications.

Find out more about Home Upgrade Grants

• Warm Homes grants of up to £15,000 are available for low-carbon heating upgrades and energy efficiency improvements. They are available only to landlords with rental homes in council tax bands A to D.

Find out more about Warm Homes grants

Energy efficiency upgrade costs vary depending on the property.

• Wall insulation for a detached home costs around £17,500, around £9,000 for a semi-detached and £7,000 for a mid-terrace home
• Boiler replacement costs £600 to £2,500
• Upgrading a gas boiler to a heat pump in a semi-detached house costs around £14,000
• Upgrading double glazing to a semi-detached house costs around £15,000