About EPC Grants For Landlords In 2025

If you own rental property in the UK, you know the pressure is on to go green. Energy Performance Certificates (EPCs) aren't just a compliance formality anymore. They represent a significant financial challenge for many landlords.

It's no wonder that over three-quarters (78%) of landlords in recent industry surveys express concern about the looming energy targets. For many, the question isn't if they should upgrade, but how they'll pay for it.

That's where the topic of EPC grants for landlords comes in.

While the headline figures can be daunting, understanding the financial support available is the first step toward making the most out of your investment and staying compliant without wiping out your cash reserves.

📢 REGULATORY UPDATE — January 23, 2026

The Government has announced critical changes to the Minimum Energy Efficiency Standards (MEES) that directly affect your grant planning:

• The 2028 interim deadline for new tenancies has been axed — landlords now have until 2030 for all tenancies

• Spending cap reduced from £15,000 to £10,000 per property

• Lower spending caps apply incrementally for homes valued under £100,000

• All improvements from October 2025 onwards count within this cap (important for tracking grant-funded work)

• Low-interest loan funding support will be available for the sector

This reduced spending cap makes grants and funding schemes even more valuable — every pound of grant funding stretches further toward your £10,000 limit.

Why Energy Performance Upgrades Matter

Currently, all rental properties in England and Wales must meet a minimum EPC rating of Band E, unless a valid exemption is registered.

However, the industry is preparing for the confirmed minimum standard of Band C for all tenancies by 2030. With the removal of the 2028 interim deadline, landlords now have a single target date to work towards.

Reaching Band C often requires major work, especially in older housing stock. While the average estimated upgrade cost is around £8,000 per property, this figure is a vast underestimate for complex cases.

Take the experience of one landlord on the r/UKLandlords forum when dealing with older, protected buildings:

"The massive issue these properties face are their original antique sash windows. It is a conservation area and so planning permission is required... I have an average cost of around £30,000 per flat at the monument to upgrade the windows..."

Stories like this show that relying purely on your own capital can be unrealistic.

For landlords facing high costs due to conservation restrictions, property age, or simply the size of the required changes, exploring EPC grants for landlords should be a top priority.

Understanding Available Funding: EPC Grants for Landlords

The UK government and utility companies offer several schemes designed to channel money towards energy efficiency improvements.

These aren't universal free-for-alls, but they are absolutely worth investigating, especially if your tenants are low-income or your property is located in a targeted area.

1. The Energy Company Obligation (ECO4) Scheme

This is the main national scheme. The ECO program places an obligation on large energy suppliers to deliver energy efficiency measures to homes.

• Funding is provided for improvements like insulation (cavity wall, loft, solid wall) and heating upgrades (e.g., new boilers or heat pumps).
• While ECO4 is primarily aimed at helping low-income households, landlords can access the scheme if their tenants meet the specific criteria (such as receiving certain benefits). The funding is not guaranteed, but it is a primary avenue for getting support.

2. Local Authority Grants (LA Flex)

Many local councils receive a portion of the ECO funding to target specific homes that fall outside the main benefit-based criteria but are still in fuel poverty.

• Look up your local authority's website. Many councils run 'LA Flex' schemes that offer insulation and heating grants. These programmes often have wider eligibility rules and may be a lifeline for landlords in specific postcodes.

3. Boiler Upgrade Scheme (BUS)

While not strictly an EPC grant, the Boiler Upgrade Scheme offers a lump sum towards the cost of installing low-carbon heating systems, such as air source heat pumps.

• The scheme provides a grant towards the purchase and installation of a heat pump, directly offsetting a major upgrade cost that would typically improve your EPC rating.

4. Government Low-Interest Loan Funding (Coming Soon)

As part of the January 2026 MEES announcement, the Government confirmed that low-interest loan funding will be made available to support landlords with energy efficiency improvements. Details on eligibility and application processes are expected to follow.

The Financial Benefits Beyond Compliance

Upgrades are costly, but the financial return goes beyond simply avoiding fines.

Properties with higher EPC ratings offer concrete benefits that improve your rental business long-term.

First, tenant demand is shifting. As energy costs remain high, tenants are putting more of an onus on properties with better EPC ratings because it means cheaper bills for them.

A recent analysis showed that a tenant living in an average property with an EPC Band C rating could save around £210 a year in utility bills compared to a Band D rating. This makes your property far more desirable, which tends to result in shorter void periods and makes it easier to justify a higher rent.

Second, better energy efficiency is correlated with higher property value. A recent study of 30,000 homes found that upgrading from a Band C to a Band D rating increased the property's value by 3% which averaged out at £9,000.

When you spend £5,000 on insulation, you are making a capital investment that both increases the worth of your asset in the present while also protecting its value in the future. It's a win-win. Using EPC grants for landlords simply means you get that capital appreciation for a lower net cost.

Getting Grant-Ready

Applying for EPC grants for landlords or local authority funding isn't easy. You'll need to do a fair bit of research, get your documentation together, and organize yourself (which is hard when you're so busy - we know!).

This is where treating your portfolio like a genuine business pays off. When applying for a grant, you need quick access to records that detail the current state of your property and the costs of any required work.

If you are struggling to pull together receipts and quotes, you are already behind.

Using a dedicated accounting-first platform helps you:

• Track Eligible Costs: Easily separate capital expenses (non-deductible) from maintenance costs (deductible) for your tax return.
• Document Quotes: Store all quotes and invoices digitally, proving the cost cap was exceeded, which is necessary for certain exemptions or high-cost grant applications.
• Track MEES Spending: With the new requirement that improvements from October 2025 count toward your £10,000 cap, accurate tracking is essential.
• Measure Profit: Accurately calculating the true financial cost of the work against the anticipated increase in rental demand or value.

The movement toward greater energy efficiency isn't slowing down.

With the clear 2030 deadline now confirmed (and the 2028 interim deadline removed), landlords who plan now, secure available EPC grants for landlords, and invest wisely will be the ones who remain profitable.

Don't wait until the deadline hits to seek out funding. Take control of your portfolio's financial data today. Create your free Landlord Studio account today.