Green homes grant – How landlords can benefit?

Earlier this year, Mr Rishi Sunak announced a new “Green homes grant scheme” to provide landlords and home-owners with vouchers upto £10000 to spend in improving the energy efficiency of their homes. As a landlord, you can cover the two-third of your home improvement cost to claim upto £5000 and can make your home more energy efficient. In case you are having low income or availing certain benefits, you can apply for vouchers upto £10000. This initiative is designed by UK government to promote energy efficiency and to boost the country’s economy in the coronavirus pandemic.

Green homes grant – How landlords can benefit?
In this article we cover:

How landlords can take benefit of Green homes grant scheme?

As per the introduction of domestic Minimum Energy Efficiency Standard Regulations (MEES) back in 2018, the foundation was already laid down to make all private rented properties more energy efficient in the UK and landlords were required to achieve EPC grade of E or higher to avoid potential penalty of £4000 but after launching of green homes grant scheme during COVID-19, landlords and tenants both can avail numerous benefits under this scheme. There are various benefits that a landlord can avail by choosing green homes grant scheme –

  1. It helps in saving your money on high utility bills.
  2. It makes your tenants happier than before.
  3. It helps make your home more energy-efficient.
  4. It will attract more eco-friendly tenants which is the biggest benefit you can avail as a landlord because 42% of tenants consider eco-friendliness while choosing a new property.

Also See: Financial Responsibilities and Liabilities for Landlords renting their Property

Who can apply?

If you want to apply for Green homes grant voucher, you must meet the following conditions as a landlord –

  1. You must be the homeowner including park homeowner, long leaseholders and shared ownership.
  2. You must be a private or social landlord.

Note – You are not eligible if you have already received a grant from your local authority. Properties that are newly build and previously not been occupied are also not eligible for this scheme. Landlords cannot apply for the low-income portion of the scheme.

What home improvements are covered by the Green homes grant?

Home improvements covered by green homes grant are split into two types: Primary measures and Secondary measures.

  1. Primary measures

    - A Voucher can be availed for installation of at least one primary measure – insulation measure and/or a low carbon heating measure.
    1. Insulation measures

      - A voucher covers the following insulation measures –
      1. Solid wall
      2. Cavity wall
      3. Underfloor
      4. Flat roof
      5. Room in roof
      6. Loft
    2. Low carbon heat measures

      - A voucher covers the following low carbon heating measures –
      1. Solar thermal (Liquid-filled flat plate or evacuated tube collectors)
      2. Air or ground source heat pump
      3. Biomass boilers
  2. Note – A voucher cannot be used for replacing already installed insulation or low carbon heating measures. However, you can top up the existing measures by using the voucher.

  3. Secondary measures

    - When you install at least one primary measure, you are eligible to use a voucher for covering the cost of any of the following secondary measures –
    1. Drought proofing
    2. Double/triple glazing (Replacement of single glazed windows)
    3. Secondary glazing (In addition to single glazing)
    4. Heating controls
    5. External energy-efficient doors (Replacing of already installed single glazed or solid doors before 2002)
    6. Hot water tank thermostats and insulation

Note – The amount you get towards the cost of secondary measures cannot exceed the amount you get for primary measures.

Also See: Buildings & Land Transaction Tax Wales

What home improvements are not covered by the Green homes grant?

Certain items that are not covered by the Green homes grant are as follows –

  1. Building a new extension or conversion to your home
  2. Installation of new fossil fuel boilers such as oil, gas or LPG boilers
  3. Insulating a conservatory with no fixed heating

More items are and are not covered by the voucher for which the list is given here.

When will the vouchers be available?

The Vouchers of Green homes grant scheme will be available from early November 2020 and are valid from 3 months from the date of issue or until 31 March 2021 (Whichever is earlier)

Also See: VAT: Buying Commercial Property At Auction

How to apply for Green homes grant voucher?

  1. You need to use the SEA website to search accredited tradespeople or businesses in your area that are ready to undertake the work and give them an invitation to send quotes. To get the best price, you should get at least 3 quotes.
  2. Issuing of Vouchers will start early in the November 2020 and are valid from 3 months from the date of issue or until 31 March 2021 (Whichever is earlier)

In case you are having any query or want specialist advice on "Green homes grant scheme", kindly call us on 03330886686 or you can also e-mail us at enquiry@dnsaccountants.co.uk.

Also See: HM Land Registry in the UK

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About the author
Blog Author

Sumit Agarwal
Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.

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About the author
Blog Author

Sumit Agarwal
Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.


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