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The £5,000 Green Homes Grant for landlords – are you eligible?

3-minute read

Helen Jackson

8 October 2020

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The Green Homes Grant, which was announced by the government on 30 September, promises to help households save up to £600 a year on their energy bills.

The government says that it will be the biggest upgrade of the nation’s buildings in a generation, and claims that it will help improve the energy efficiency of 600,000 homes.

  • The landlord's guide to choosing a tenant

The scheme isn’t just supporting homeowners and residential landlords – the government also claims that it will lead to 100,000 extra jobs across the UK.

Get your free guide to the Green Homes Grant

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Landlords in England can get vouchers worth up to £5,000

If you’re a residential landlord, you can apply for a voucher that can help with the costs of renovating your rental property to make it more energy efficient.

The grant is non-repayable and covers labour, materials, and VAT – but will only cover two-thirds of the total renovation costs.

Landlords who want to apply for the grant will have until the 31 March 2021 to apply.

There is an urgency to apply for the scheme. With only £2 billion of funding available, the vouchers are expected to disappear quickly.

Because of this, many people have had issues finding approved installers to complete the work before the March 2021 deadline, according to Money Saving Expert's Martin Lewis.

How will the grant help landlords?

Any improvements that you're able to make using the grant should save you and your tenants money on your energy bills.

The grant is also an opportunity for landlords looking to attract new tenants. Almost half (42 per cent) of tenants take green credentials into account when searching for a new property. So it could be worth stepping up the eco-efficiency of your rental.

What improvements are allowed with the grant?

The improvements are split into 'primary' and 'secondary' groups. A 'primary measure' includes major insulation works – such as wall or floor insulation.

A 'secondary measure' includes any work to windows and doors, such as draught-proofing or double glazing.

If you receive the grant, you'll need to install at least one primary measure before you can use the grant for any secondary improvements.

The site has the full list of primary and secondary measures.

Is the Green Homes Grant available to everyone?

It’s important to note that this grant is only available to homeowners and residential landlords in England. If you own an unoccupied new build property you won't be able to access the scheme.

As we’ve already mentioned, the Green Homes Grant scheme will fund up to two-thirds of a renovation project. Homeowners with low incomes are eligible for a grant covering up to 100% of the renovation cost up to £10,000. But, it's important to note that residential landlords can't apply for the low income part of the scheme.

How to apply for the Green Homes Grant

There are a couple of steps that you need to take before you apply for the government insulation grant:

  1. Decide what work needs to be done to your property. if you visit the Simple Energy Advice website you can fill in a short questionnaire which will help you determine the work your property needs the most.

  2. Find a TrustMark-registered tradesperson who can carry out the work. The government recommends collecting up to three quotes to get the best price.

  3. After that, you can go ahead and apply for the vouchers on the site. You'll need to include some details about yourself and any other property owners, and a quote for the work from the tradesperson you've chosen.

Are you applying for the Green Homes Grant scheme? What improvements are you planning on making? Tell us in the comments below.

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We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer

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