How the Green Homes Grant can benefit landlords

How the Green Homes Grant can benefit landlords

In amongst all the excitement about the stamp duty holiday, you might have missed the announcement of the Green Homes Grant scheme back in July.

But what is the Green Homes Grant and how can it benefit you as a landlord? We’ll outline everything you need to know right here…


What is the Green Homes grant scheme?

The Green Homes Grant scheme was introduced in July as part of the government’s bid to help make the UK’s housing stock more energy efficient.

It’s estimated that the grants scheme could help around 650,000 homes save as much as £300 a year on their energy bills, while also reducing the UK’s carbon footprint.

Essentially, the grant scheme means homeowners and landlords can apply for financial help towards making energy efficient improvements to their properties.


How does the Green Homes scheme work and what’s included?

The Green Homes Grant scheme works by issuing vouchers to landlords and homeowners towards certain eco-friendly upgrades and installations in their properties.

Here’s how it works:  

  • Under the scheme, the government will pay two thirds of the cost of the upgrades, up to a maximum of £5,000 for landlords.
  • Once you have applied for a grant, you’ll be issued with a list of approved tradespeople to carry out the work and then a voucher to pay for two thirds of the cost.
  • In order to qualify for the grant, you must make one ‘primary’ improvement. You can then receive funding for a ‘secondary’ improvement.
  • The amount of funding you receive for a secondary improvement can’t exceed the cost of your primary improvement.
  • So, if you receive £1,000 for a primary measure, you can only receive up to £1,000 for a secondary measure


Primary measures

The primary improvements available under the Green Homes Grant scheme are:  

  • Solid or cavity wall insulation
  • Under floor insulation
  • Loft insulation
  • Flat roof insulation
  • Air source heat pumps
  • Ground source heat pumps
  • Solar thermal
  • Biomass boiler
  • Hybrid heat pump


Secondary measures

Once you have completed work on a primary measure, you’ll be able to apply for a secondary measure, which includes: 

  • Draught proofing
  • Double or triple glazing windows (only where replacing single glazing units)
  • Secondary glazing (in addition to single glazing)
  • Energy efficient replacement doors
  • Hot water tank thermostats
  • Hot water tank insulation
  • Heating controls


Green Homes Grant benefits for landlords

The benefits of the Green Homes Grant to landlords are:  

  • Installing energy saving measures such as insulation and double glazing could help you stay in line with Minimum Energy Efficiency Standards (MEES). Those rules mean you can’t legally rent out your property if it’s Energy Performance Certificate (EPC) rating is below E
  • Your property will be more appealing to tenants if it’s energy efficient, as they’ll save money on their utility bills
  • UK tenants are more eco-conscious than ever before, with 42% saying they consider how ‘green’ a property is before renting it. An energy efficient property can help your property stand out from the crowd


Energy grants for landlords: Am I eligible?

The Green Homes Grant scheme is open to:  

  • Homeowners in England, including those in Shared Ownership properties
  • Park Home owners on residential sites
  • Residential landlords in the private rented and social rented sectors


New-build homes that have not been previously occupied do not qualify for the Green Homes Grant scheme.


How to apply for a Green Homes Grant as a landlord

To apply for funding to make improvements to your rental property, visit the Simple Energy Advice website.


  • Check what improvements may be suitable for your property
  • Choose your improvements and get an estimate of the cost
  • Find Green Homes Grant-accredited trades to do the work
  • Get quotes for the work
  • Apply for a voucher, supplying your quote


Vouchers are now being issued for work – but you’ll need to move quickly to apply, as the scheme closes on March 31, 2021.


Further reading

As well as the Green Homes Grant, you might be considering making other improvements to your rental property.

If so, take a look at these 10 before and after renovations, which will give you some inspiration.