The government is asking landlords for their views on funding options for energy efficiency improvements under its Warm Homes Fund.

It has put aside £5 billion for green improvement funding across all housing tenures and a call for evidence outlines ways to spend this, by developing green finance products, through a mix of grants, loans, and other financial products to support improvements.

The consultation wants views on low and no interest consumer loans, hire purchase agreements, and property linked finance which can finance the upfront cost for qualified energy projects with repayment obligations linked to the property.

The government explains: “Throughout the recent consultation on improving the energy performance of privately rented homes, landlords indicated that they would welcome access to loans and highlighted factors that could make loans preferable to grants in some instances. First, some stakeholders indicated low awareness or understanding of grants. Second, they shared that grants are often based on tenant eligibility, but that is much easier for landlords to upgrade a property in between tenancies while it is vacant (making them ineligible for some grants).”

Properties

All landlords will have to bring rental properties up to an EPC band C by 2030 although the spending cap – the maximum amount landlords will need to fork out for improvements – has dropped from £15,000 to £10,000 per property. Support is currently available to landlords to improve their properties, for example, through the Boiler Upgrade Scheme (BUS) and Warm Homes: Local Grant.

The NRLA says while the direction of travel set by the government is clear, there remains a significant gap between ambition and delivery. “We are arguing it is critical that these proposals are considered alongside wider regulatory changes, particularly reforms to Minimum Energy Efficiency Standards (MEES) and Energy Performance Certificate (EPC) requirements. Without a clear, joined-up approach, there is a real risk that landlords will face overlapping obligations without the tools needed to meet them.” 

The consultation closes on 1st June.

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