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.”