Landlords in Brighton & Hove are being offered grants of up to £7,500 to improve the energy efficiency of their rental properties and bring them up to an EPC C rating.
The new scheme, launched by Brighton & Hove City Council, aims to improve the standard of private rented homes while also helping the council increase the amount of temporary accommodation available to people facing housing difficulties.
The Energy Performance Grant Scheme for Landlords is aimed at eligible landlords with properties currently rated EPC D or below.
In exchange for the funding, landlords must agree to carry out the required energy efficiency improvements and lease the property to the council for three years.
Landlords Can Receive Up to £7,500
The scheme provides eligible landlords with grant funding of up to £7,500 towards improvements designed to increase the property’s energy performance.
The pilot is available to landlords in Brighton & Hove who own up to three properties that currently have an EPC rating of D or lower.
The funding is intended to help landlords make practical improvements to their properties while reducing the amount they need to spend themselves on bringing older homes up to a higher energy efficiency standard.
Landlords who take part must commit to completing the agreed improvement works and signing a three-year lease with Brighton & Hove City Council.
The council will then use the property as temporary accommodation.
Three-Year Lease Required
The grant comes with conditions that landlords need to consider before applying.
Once the three-year lease has been signed, the grant funding will be released to the landlord. However, if the agreement ends before the three-year period is complete, the grant will need to be repaid to the council.
This means landlords need to be comfortable with the commitment before accepting the funding.
For landlords who are already considering energy efficiency improvements and are happy to provide their property as temporary accommodation, the scheme could provide a way to reduce the upfront cost of upgrading the property.
Council Aims to Improve Private Rented Homes
Brighton & Hove City Council says the scheme is designed to address two issues at the same time: the shortage of temporary accommodation and the condition of privately rented homes.
The city has been experiencing increased pressure on its housing services as more households require emergency or temporary accommodation.
By working with landlords, the council hopes to increase the number of suitable properties available while also improving their energy efficiency.
Councillor Gill Williams, the council’s cabinet member for housing, said the scheme would help increase the supply of temporary accommodation while making improvements to private rented properties.
The council also described the scheme as an opportunity for local landlords to make meaningful upgrades to their properties with financial support.
Why EPC Ratings Matter for Landlords
Energy Performance Certificates are becoming increasingly important for landlords across the UK.
An EPC provides a property with an energy efficiency rating from A to G, with A being the most efficient. Properties with lower ratings can require more work to improve their energy performance and may be more expensive for tenants to heat.
For landlords with older properties, improving the EPC rating can therefore involve significant upfront costs.
The Brighton & Hove scheme could help reduce some of that financial burden for eligible landlords, although participation also comes with the requirement to provide the property to the council under a three-year lease.
EPC C Target Is Approaching
The scheme comes as the government continues to work towards higher energy efficiency standards for private rented properties.
Under the government’s proposed plans, privately rented homes are expected to meet an EPC C standard by 2030, although landlords should continue to monitor the final rules and any changes to the proposed requirements.
For landlords with properties currently rated D, E or below, the Brighton scheme could provide an opportunity to start making improvements ahead of the wider deadline.
However, landlords outside Brighton & Hove will need to consider other funding options and schemes available in their own areas.
A Potential Opportunity for Brighton Landlords
For eligible landlords, the grant could make upgrading an energy-inefficient property more affordable.
The arrangement may be particularly worth considering for landlords who are comfortable with a longer-term agreement and would prefer the certainty of leasing their property to the council rather than finding tenants through the open rental market.
At the same time, landlords should weigh up the three-year commitment and understand the conditions attached to the grant before making a decision.
The scheme also highlights how councils are increasingly looking at partnerships with private landlords to address local housing shortages.
As pressure on councils to provide temporary accommodation continues, similar initiatives could become more common in other parts of the country.
What Landlords Should Consider
Landlords in Brighton & Hove who own properties with EPC ratings of D or below may want to check whether they meet the scheme’s eligibility requirements.
Before applying, landlords should consider:
- The potential cost of the required energy efficiency improvements
- The property’s current EPC rating
- The maximum grant available
- The three-year lease commitment
- The conditions attached to the funding
- The possibility of having to repay the grant if the lease ends early
- How the arrangement fits into their wider investment strategy
For landlords already planning to upgrade their properties, receiving up to £7,500 towards the work could be a useful incentive.
The scheme also gives landlords an opportunity to prepare for the direction of travel on energy efficiency standards while helping the council provide additional temporary accommodation.
For property investors, the key takeaway is that EPC requirements are becoming an increasingly important part of managing a rental portfolio. Keeping track of local grants and government proposals could help landlords reduce upgrade costs and avoid leaving energy efficiency improvements until the last minute.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property