Landlords with properties in England are being told to contact their local council as soon as possible to see if they are able to take advantage of new government funding to upgrade energy efficiency in homes, if they are not using mains gas heating.

Department of Business, Energy and Industrial Strategy has been tasked with £700 million government funding to roll out the Home Upgrade Grant Phase 2 (HUG 2)  to upgrade owner occupied and rented homes in England.

The eligibility criteria for homes is they must have an EPC of D or lower, must not be heated by mains gas, and an annual household income of less than £31,000 or is located in a deprived neighbourhood.

PRS rented ‘residences’ are allowed under the scheme if the landlord has four or less properties and the tenants’ annual household income is below £31,000.  If accepted, landlords’ eligible property or portfolio can receive up to two thirds of costs for upgrading the homes’ energy efficiency from the HUG 2 scheme.

The government has set up the Home Upgrade Hub which is the support service to assist local authorities across England to successfully apply for HUG 2 funding.

Sarah Daly, associate director of sustainability consultancy at Turner & Townsend, which is helping the government deliver the scheme, says: “The government is clear on its intent to deliver on its Net Zero goals and to support people in fuel poverty.  Making funding available to landlords to retrofit inefficient properties is a key part of the pathway to delivering on these goals.

“The Home Upgrade Grant 2 scheme offers a unique opportunity to upgrade housing stock and help lift homeowners and tenants out of fuel poverty.  As soon as local authorities have their HUG 2 funding applications approved, they will be seeking to sign up eligible households in 2023, so landlords looking to benefit from this new scheme should engage with their Local Authority to discuss their HUG 2 delivery plans.”

Richard Merrick of PIMS,said:” This is a good move by government in its ever relentless climate control target and although £700 million sounds a significant sum its success depends on whether the infrastructure is adequate in being able to process the claims through on time.