What grants are available to landlords to cover EPC improvement costs?

In February 2025, the government launched a consultation into plans to raise the required minimum energy efficiency standard of privately rented homes in England and Wales to the equivalent of Energy Performance Certificate (EPC) C by 2030.

The government says it wants to bring down tenant energy bills significantly and deliver carbon emission savings against the government’s 2030 fuel poverty target and carbon budgets. It believes the move could lift half a million households out of fuel poverty by 2030, potentially leaving tenants in poor energy performance properties hundreds of pounds better off a year. But what are the cost implications for landlords and what support might they be able to access to cover them?

Counting the cost

Almost half (48%) of private rented homes in England already have an Energy Performance Certificate C or above. Those who own the rest will need to spend money on loft insulation, cavity wall insulation or double glazing, with other options such as solar panels and smart meters also in the mix for future consideration.

• According to government estimates, the average cost to landlords of complying with the proposals to upgrade their properties is £6,100-£6,800 by 2030.
• Under the proposals, there would be a maximum cap of £15,000 per property for landlords, as well as an “affordability exemption”, which would lower the cost cap to £10,000 and would apply to properties that yield lower rents or those in lower council tax bands.

Requiring all landlords in England and Wales to meet the new EPC requirements by 2030 at the latest at least gives landlords an extra two years’ grace when compared with previous proposals. However, landlords who fail to upgrade their properties by 2030 face having to take them off the UK property rental market altogether.

The Scottish Government’s Heat in Buildings Bill consultation proposes new minimum energy efficiency standards that private landlords in Scotland will have to meet by 2028.

Need to know! Since 1 April 2020, landlords have not been allowed to rent out domestic properties with an EPC rating below E, unless they have a valid exemption.

Grant funding for EPC improvements

• The government has announced new grant funding focussed on low income homes to support energy-efficiency improvements in England.
• The Warm Homes: Local Grant is a government-funded scheme that will be delivered by local authorities.
• Some landlords will be able to receive up to £30,000 towards improving their first rental property and £15,000 for additional homes to let. Properties must have an EPC rating of D to G.
• Landlords will be eligible for full funding for the first property, but they will need to contribute 50% of funding for additional homes.
• The three key eligibility criteria are: ​​postcode (based on levels of deprivation), whether tenants are receiving Universal Credit and housing benefit or households with gross annual income below £36,000.
• Funding will be allocated from 1 April 2025.
• Some landlords in England and Wales may also be able to access grant funding from the Boiler Upgrade Scheme, which can cover some of the cost of replacing fossil fuel heating systems with a heat pump or biomass boiler.

More reading

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