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Energy Upgrade Scheme - Landlords urged to contact local councils

Landlords in England are being encouraged to contact their local council to find out if they are eligible to access government funding for upgrading energy inefficient homes not heated by mains gas.

The Home Upgrade Grant Phase 2 (HUG 2) scheme from the Department of Business, Energy and Industrial Strategy is set to allocate up to £700 million of Government funding to upgrade owner-occupied and private rented homes in England.

To be eligible, homes must not be heated by mains gas, have an EPC of D or lower, and either a household annual income of under £31,000 or be located in an economically deprived neighbourhood. 


Private rented sector dwellings are eligible through the scheme, provided the landlord has no more than four properties and the tenants meet the above criteria.  Landlords with an eligible property or portfolio will receive up to two thirds of the cost associated with improving the energy efficiency of these homes as part of the HUG 2 scheme.

Funding will be made available through local authorities that apply on behalf of all qualifying homes in their area.  Landlords looking to access HUG 2 funding should contact their local authority to find out more.

The Home Upgrade Hub is a support service set up to help local authorities in England successfully apply to the HUG 2 scheme. 

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.”

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    I can see this being endless paperwork with a negative answer at the end, I am not having internal boarding where the tenants move out, they are apartments so no external cladding is allowed….. where to go…. I know, the estate agent 🧐

  • Elizabeth Campion

    £31k jointly. hmmmm excludes a lot.


    Wouldn't a working couple on minimum wage be on around £38K if they worked full time?

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    I wonder how many rental properties would be eligible for this? I would think the majority are on mains gas and/or EPC C and above by now?

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    I've applied for grants over the years, been a total waste of time and effort, one example in 2016, a single mum working 16 hrs a wk with a broken boiler, I was offered the grant and expected to contribute £1900 to the cost, I turned that down, bought my own boiler a Baxi from Mr Central Heating in Essex £700 inc VAT, my heating engineer charged me £500 no VAT (not registered) to fit , so that worked out £700 cheaper for me than to go down the grant route, some of these people really do think we are daft.

    John  Adams

    Mr Central Heating are extremely competitive, used them many times, and as you say these Grants just don't stack up. It's all a dressing-up exercise.


    This is exactly what will happen.

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    Just make energy improvement measures tax deductible instead of Capital improvements and let landlords get on with getting the job done.

    Bill Wood

    Yes indeed.
    It's similar to private health care, if that was tax deductable the NHS wouldn't have to struggle as it does now.

  • Elizabeth Campion

    Too much like common sense Jo.

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    Just subsidise loft insulation - or give it out for free! That would be a much better use of OUR money & would probably result in more insulation than any other scheme.

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    I'm often amazed to see the huge bits of surplus insulation sheets dumped in skips during building work.

    Over the years I have liberated enough from skips to line the inside of stud partition walls in the attic rooms of my second home.

    The effectiveness of this free insulation is evident by the amount of snow no longer melting off the roof adjacent to the attic radiators.

    Builders and skip operators should be forced to recycle such materials but our local Council dump won't allow anything to be taken from it, no matter how useful or pristine it might be.


    I think a lot of the larger building firms and developers don't bother to work out quantities they simply over order and whats left over ends up in a skip, my older daughter's partner used to do some site work and came back with all sorts, even a complete brand new UPVC door and frame that he'd rescued from a skip on site, that on it's own has to be 4 - 500 £s and he did ask permission before he took it


    When the QE2 was being fitted out in Clydebank, they needed 3 times as many square yards of plush carpets as originally estimated.

    The Security guys never could work out how it left the yard but local joiners were very busy cutting bottoms of doors because some recently acquired floor coverings were so thick!

    One wag, on being asked how so much carpet could simply "walk" answered that it had 3 feet for every yard!

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    About Boilers stories a few days ago. If it’s a Combi’ Boiler I’m for Vaillant most of mine are, not cheap maybe double the price of some others but that’s ok as long as they don’t break down.
    Traditionally I was all about Potterton & Ideal Standard before Combination Boilers,
    Not now had to replace too many Baxi & Potterton Titanium Boilers 6/7 years that is with that stupid condensing tank gumming up causing problems & in at the back the most inaccessible position.
    I have given up on Ariston as well had 2 of them installed in 2 Flats at same time, flow switch seemed to give trouble then leaking, one was under service guarantee with BG, waste of time. When called out more likely to do damage than fix, when I replaced both the one that wasn’t under guarantee just cost the price of a replacement Boiler, while the guarantee on the other one over the years had cost me more than the price of a Boiler and still had the extra cost on top for a new Boiler .
    Pressure coming on Boilers now lads.


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