Mortgage Insurance Calculators About How it Works
   Back | How it Works
Securing an excellent mortgage offer with Revolution Finance Brokers couldn't be easier
1Get in Touch
Complete a quick form to give us an overview of your mortgage or financing requirements, and we'll provide recommendations about the best opportunities for you.
2Submit Your Application
Once you've chosen your preferred mortgage deal, we'll steer you through the paperwork with comprehensive application management from start to finish.
3Mortgage Completion
Revolution Finance Brokers will finalise the details and enable you to move forward without delay!
   Back | About
   Back | Insurance
   Back | Calculators
   Back | Your Mortgage Position
Your Mortgage Position
Bad Credit
Buy to Let
Development Finance
Self Employed
Mortgage for professionals
Lifetime Mortgages
Expat mortgages
Interest Only
Mortgage Affordability
Mortgage Application
Income Types
Residential Mortgages
Commercial Mortgages
Property Types
First Time Buyers
Mortgage Declined
Offset Mortgage
   Back|Bad Credit
   Back|Buy to Let
   Back|Self Employed
   Back|Expat Mortgage
   Back|Interest Only
   Back|Income Types
   Back|Property Types
   Back|Other Mortgages

How is the Green Homes Grant Extension Beneficial to UK Property Landlords?

How is the Green Homes Grant Extension Beneficial to UK Property Landlords?
Why Revolution Brokers?

Whole of market brokersWhole of market brokers

Mortgage that suits youMortgage that suits you

On time customer supportOn time customer support

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

Almas Uddin08 Dec 2020

The Green Homes Grant was announced earlier this year, alongside a raft of changes to tax allowances, Stamp Duty rates, and electrical safety rules.

While it may be challenging to keep up to date with new regulations, there is a positive here, in that the grant may provide a significantly cheaper way to improve your property portfolio.

Now the Green Homes Grant has been extended for a full additional year, meaning that British property owners can apply for financial support through a voucher scheme to enable them to carry out energy efficiency improvements.

Let's look at what this means, how the scheme works, and why it is well worth considering.

Image Credits PXFuel

The Green Homes Grant for Property Investors

This scheme is valued at £2 billion, and is intended to provide a benefit to UK property and trade sectors in several ways:   

  • Discounted works should drive up energy improvement projects, and thus increase demand for tradespeople in the property sector - the anticipated impact is the creation of 100,000 new jobs.
  • Homes on the private rental market will be improved, and reduce energy bills by making it more affordable for landlords to carry out upgrades. The government estimates a reduction of £600 per year, per household in heating costs.
  • Energy efficiency makes a property cheaper to heat, but also more environmentally friendly in the long-term, with low-carbon heating options and long-term sustainable heating solutions favoured.

While the key takeaways are about jobs, employment and quality of living, this scheme is also aligned with the government's Green Industrial Revolution plan. So there's a bigger picture that sits behind this attractive voucher scheme.

What Property Upgrades are Eligible for a Green Homes Grant?

There are multiple types of work that are eligible; in essence, anything that improves the insulation or heating efficiency of a property.

Eligible applications must cover at least one 'primary measure' and any number of secondary measures.

Primary measures include:

  • Wall insulation - for solid walls, internal or external, and cavity walls.
  • Floor insulation - both under solid and suspended floors.
  • Roof insulation - including lofts, flat roofs, pitched roofs and rooms in roof spaces.
  • Installing low carbon heat solutions, including air source and ground source heat pumps, solar thermal heaters, biomass boilers and hybrid heat pumps.

Secondary measures may all be included on a Green Homes Grant application - although an application without at least one primary measure will not be approved. Secondary measures include:

  • Replacing windows and doors with draught-proofing, replacing single glazing with double or triple glazing, installing secondary glazing, or upgrading to energy-efficient doors.
  • Installing low-energy water heating, including hot water tank thermostats and insulation, and heating controls, including smart controls, thermostats, and thermostatic radiator valves.

Vouchers may be used to cover any aspect of the work, including the cost of labour, buying materials, and any VAT levied on those expenses.

As a landlord, this presents multiple opportunities.

  1. Residences with a higher EPC rating are easier to let, and command a higher rental price, since they are efficient, cheaper to run, and less costly to heat.
  2. From 2025, it is likely that buy to let properties must reach a minimum EPC rating threshold of C (currently D), in which case this scheme offers a cheaper way to reach those requirements well in advance of new regulations.
  3. New portfolio acquisitions can be upgraded and improved, immediately raising the property value, and replacing older glazing and doors with contemporary, energy-efficient materials at a significantly reduced cost.
  4. Existing tenants are likely to welcome improvements made to their home, with options such as replacing tired boilers with upgraded, faster and cheaper water and home heating solutions.

So - how do you apply, how much funding support can you get, and how quickly do you need to move?

Applying for a Green Homes Grant for an Investment Property

The scheme will fund works up to two-thirds of the cost, or a maximum of £5,000 - you'll need to demonstrate that the work is specifically related to energy saving.

Initially, applications were accepted from 30th September 2020, for both homeowners and landlords. Still, the initial six-month deadline swiftly became unrealistic, given the volume of applications, and the complications of lockdowns and movement restrictions, meaning that most projects could not feasibly be completed by 31st March 2021.

Given the popularity of the scheme and the need for additional time for projects to be completed, landlords may now apply for works to be completed by 31st March 2022.

Eligible applicants include:

  • Property owners, including shared ownership.
  • Residential landlords in either private or social rental sectors.

New build homes are not eligible; given that these properties should already be compliant with regulations and best practice around energy-efficient construction techniques.

Your tradesperson will need to be registered as a Green Homes Grant Installer. So even if you tend to carry out work on your own properties, or have a preferred contractor, you will need to use the vouchers towards payment of an approved tradesperson.

Contractors can also apply to become recognised as a Green Homes Grant Installer, provided they are certified to install energy-efficient appliances to one of the below three Publicly Available Specification standards (PAS):

  • PAS 2030:2017
  • PAS 2030:2019
  • PAS 2035:2019

Funding is released in the form of vouchers, up to two-thirds of the cost of the eligible works, with a maximum contribution of £5,000.

I.e. If you wish to replace a non-efficient boiler, and install new roof insulation in a rental property at the cost of £12,000, you can apply for £5,000.

You can apply online, and should first:

  • Decide what works you wish to carry out.
  • Obtain three quotes from registered Green Homes Installers.
  • Combine multiple works on one application (a separate voucher is issued for each aspect).

The installer must be named on the application, as vouchers are explicitly issued for redemption with that installer, and therefore cannot be transferred to another contractor.

Vouchers will be valid for three months from the date of issue, or until 31st March 2021 - whichever date falls first.

Therefore, it is essential to have your quotes ready, be able to proceed quickly with the work, and have the capacity within your rental properties for the improvements to complete before the three-month validity deadline expires.

We hope this summary of the Green Homes Grant, and why it is well worth consideration for UK landlords, is useful!

For more information about funding opportunities, forthcoming landlord regulations, and ways to improve the value of your property portfolio, visit the Revolution Brokers Blogs and Guides pages for insights, advice, and expert guidance.

Contact us now to discuss your personal options, Revolution Finance Brokers specialise in commercial and residential finance in Essex, Kent, London and Hertfordshire.

Related Posts
Using a Second Charge Mortgage on Buy-to-Let Investments

Using a Second Charge Mortgage on Buy-to-Let Investments It is certainly possible to apply for a second charge mortgage on buy-to-let investment properties, although it is important to calculate the costs carefully and ensure any second charge mortgage providers you choose are likely to be able to approve your application. Some appl..

Read more 
The Causes Of Bad Credit Rating: Explained

Struggling with a bad credit rating is more common than you might think. Research shows that one in five people have errors on their credit reports that could affect their scores. This article will guide you through the causes of a poor credit score and how to fix it. Let's dive in! Key Takeaways Missing payments on loans, cre..

Read more 
Is it Possible to Get a Second Charge Commercial Mortgage?

Is it Possible to Get a Second Charge Commercial Mortgage? A second charge loan agreement works as an additional mortgage product secured against a property. Can you get a second charge commercial mortgage in the UK? In short, yes, there are varied products and options to apply for this type of mortgage. However, as with most secure..

Read more 

FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature.

We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.