EPC Grants For Landlords: Your Guides To The Warm Homes Local Grant
EPC Grants for Landlords
In recent years, many landlords have found themselves under increasing pressure to improve the energy efficiency of their properties. Rising energy costs, evolving tenant expectations, and the likelihood of stricter EPC requirements mean that older, less efficient homes are becoming more challenging to manage. To support this transition, the government has introduced the Warm Homes: Local Grant, a scheme designed to make essential upgrades more accessible and affordable. Launched in 2025, WHO offers meaningful financial assistance for improving a property’s EPC rating, particularly for landlords with homes that fall below modern efficiency standards. This guide explains how the scheme works, who is eligible, and how it can help you invest in long-term improvements while managing costs effectively.
In this article:
- The Warm Homes: Local Grant is a major government scheme launched in 2025 offering up to £30,000 per property to help landlords in England improve EPC ratings through insulation, glazing, renewable energy, and low-carbon heating upgrades.
- Eligibility depends on property efficiency and tenant circumstances, with funding focused on EPC D–G homes occupied by low-income or means-tested tenants. The first property can be fully funded, while additional properties require a 50% landlord contribution, capped at £315,000 per landlord.
- Applying through local authorities, landlords can significantly reduce upgrade costs, future-proof against tighter energy regulations, improve tenant satisfaction, and enhance long-term property value, with alternatives like ECO and BUS available for further support.
What Is the Warm Homes: Local Grant
The Warm Homes: Local Grant is a government-funded initiative launched in April 2025 to help improve the energy performance of low-income households across England. Unlike national schemes delivered through energy suppliers, WHLG is administered locally by councils, allowing funding to be targeted at communities with the greatest need. The grant is designed to support energy efficiency upgrades such as insulation, improved glazing, renewable energy installations, and the adoption of low-carbon heating technologies like heat pumps. Backed by a substantial £500 million funding pot allocated between 2025 and 2028, the scheme aims to lift homes out of cold, inefficient conditions while helping the UK progress toward its net-zero goals.
Why the Warm Homes Local Grant Matters to Landlords
Many privately rented homes still fall below the energy standards expected of modern housing, with a large proportion rated between EPC D and G. These properties are not only more expensive to heat, but they also carry potential regulatory risks as the UK continues to move toward higher minimum energy efficiency standards. The Warm Homes Local Grant is particularly valuable to landlords because it directly supports the types of improvements that help meet current and future legal obligations. Enhancing the EPC rating of a property can also improve tenant satisfaction, reduce void periods, lower maintenance issues linked to damp or poor heating, and potentially increase long-term rental value. For landlords looking to stay competitive and compliant, WHLG provides a timely opportunity to invest in upgrades at a substantially reduced cost.
Eligibility Criteria for Landlords Under Warm Homes
Eligibility under WHLG is determined by a combination of property factors, tenant circumstances, and landlord commitments. To qualify, the property must be located in England and have an EPC rating of D, E, F, or G, ensuring the funding is directed towards the least efficient homes. New builds or self-builds that have not previously been occupied are excluded, as are certain types of properties unless they meet specific criteria, such as park homes.
Tenant eligibility is equally important. Generally, funding is available where the household income is below £36,000 per year, or the tenants receive eligible means-tested benefits. Some local authorities may also extend eligibility based on postcode, using deprivation indices to identify priority areas.
Landlords must also meet specific obligations. For the first eligible property, the grant may cover up to 100% of the upgrade cost. However, additional properties require a 50% landlord contribution. There is also a maximum grant limit of £315,000 per landlord across all properties. If a property is rated F or G, landlords may also need a registered exemption under the Private Rented Property Regulations. Importantly, landlords must confirm that they will not increase rent directly as a result of receiving the grant, and they must be willing to participate in any government-led monitoring or evaluation activities associated with the scheme.
What Types of Upgrades Does the Grant Cover?
The Warm Homes grant is designed to enable meaningful whole-house improvements by covering a wide range of energy-efficiency and heating measures. This includes insulation for lofts, walls, and floors, which is often one of the most cost-effective ways to improve a property’s EPC rating. It can also fund upgrades to windows and doors, such as installing double or triple glazing or improving draught proofing measures that help reduce heat loss and improve comfort.
In addition to insulation, the scheme supports the installation of low-carbon heating systems, including air-source heat pumps and other modern heating technologies. Renewable energy options such as solar photovoltaic (PV) systems may also be included, depending on the local authority’s delivery plan. Some councils may further offer support for smart heating controls or ventilation upgrades, enabling a comprehensive approach to energy efficiency.
How Much Funding Can Landlords Receive?
The funding available through WHO is generous, making it one of the most attractive energy-upgrade schemes for landlords to date. Landlords can receive up to £30,000 per property, split between a maximum of £15,000 for energy-performance measures and £15,000 for heating upgrades. For the first eligible property, this amount may be fully funded without any landlord contribution. However, for additional properties, landlords must contribute 50% of the total cost of the works. Across all properties owned by a single landlord, the scheme allows up to £315,000 in total grant funding, making it particularly suitable for portfolio landlords looking to improve multiple homes strategically.
How to Apply for the WHLG Scheme
Applying for WHO involves several steps, beginning with checking whether your local authority is participating in the scheme and understanding their specific application process. Since delivery varies by region, councils may have different forms, deadlines, and approved contractors. Landlords should ensure they have a valid EPC showing a rating of D, E, F, or G before applying, as this is a core eligibility requirement.
Tenant eligibility must also be confirmed, either through proof of income, benefit documentation, or verification that the home sits within a qualifying postcode area. Once eligibility is established, a retrofit survey will usually be conducted by an approved installer to determine the most appropriate measures. Landlords then submit the application through the local authority’s system, providing any required documents and confirming acceptance of the scheme’s terms, including the commitment not to raise rents as a direct result of the grant.
Benefits of Upgrading Through WHLG
Taking advantage of the Warm Homes: Local Grant offers landlords a wide range of meaningful benefits, both immediate and long-term. One of the most significant advantages is the financial support itself. Energy-efficiency upgrades, particularly those involving insulation, glazing, and heat pump installation, can be expensive, and the WHLG scheme removes much of that financial burden. For many landlords, the grant makes improvements possible that would otherwise be unaffordable or delayed for years.
Another major benefit is the impact on tenant comfort and satisfaction. Homes that are warmer, better insulated, and cheaper to run are naturally more appealing to tenants, especially during periods of rising energy costs. Improved living conditions can lead to longer tenancies, fewer complaints, and reduced turnover, all of which contribute to better stability and lower management costs. A more efficient property can also reduce common issues like condensation, damp, and mould, problems that often lead to costly repairs and tenant disputes.
Upgrading through WHLG also helps landlords stay ahead of regulatory change. Minimum EPC standards are expected to tighten in the coming years, and inefficient homes may eventually become unlawful to let. By completing upgrades now, especially while funding is available, landlords can avoid future compliance challenges and costly last-minute retrofits. This proactive approach not only ensures regulatory security but can also enhance the long-term value of the property.
From an investment perspective, improving energy efficiency can increase a property’s marketability and asset value. Homes with stronger EPC ratings often command higher rents in competitive areas and appeal more to environmentally conscious tenants. In addition, energy-efficient homes tend to have lower running and maintenance costs, which indirectly benefits landlords by reducing the likelihood of tenant arrears and minimising wear on heating systems.
Finally, taking part in WHLG contributes to broader environmental and social goals. By improving the quality and efficiency of housing stock, landlords play a role in lowering carbon emissions and helping the UK move toward net-zero targets. At the same time, tenants benefit from healthier, more comfortable homes that are less costly to heat, supporting affordability and wellbeing across communities.
Final Thoughts
Upgrading the energy efficiency of a rental property can feel like a daunting task, especially when budgets are tight and the regulatory landscape is constantly shifting. The Warm Homes: Local Grant offers landlords a rare chance to make meaningful improvements with substantial financial support, easing much of the pressure that has built up in recent years. By taking advantage of the scheme, you’re not only preparing your properties for the future, you’re also creating warmer, healthier, and more comfortable homes for the people who live in them.
Whether you own one rental or manage a larger portfolio, WHLG provides a practical pathway to invest in long-term value without carrying the full cost alone. As energy expectations continue to change, the landlords who act now will be the ones best placed to meet new standards, stay competitive, and offer properties that tenants genuinely want to live in. The opportunity is here, making the most of it could benefit both your business and your tenants for years to come.
