Financial assistance for improvement works

The incentives to install energy efficiency measures are different between the rented sector and the owner occupied sectors. In the rented sector, the tenant has most to benefit from improvements to the energy efficiency of their property (a warmer home, lower bills) but the landlord is likely to be the person who would make (and pay for) those changes. However there are a number of schemes available which may contribute toward the cost of improvements to a building that are designed to increase its energy efficiency. The main ones are outlined below.

The Carbon Emissions Reduction Target (CERT)

The six domestic energy suppliers are required by government to meet carbon emission reduction targets based on the number of consumers they serve. The suppliers meet their targets by funding the installation of energy efficiency measures or by offering other services, each one of which is accorded a carbon saving ‘score’ which counts towards their targets. A set proportion of the carbon savings must be achieved from the Priority Group – households (including tenants) in receipt of certain benefits.

Suppliers are keen to identify dwellings which could benefit from the installation of measures in a cost effective manner (for example, a whole estate or street that could benefit from cavity wall insulation or loft insulation). There may be supplier schemes that will offer free or discounted measures, especially on large portfolios.

The Energy Savings Trust helpline or the suppliers’ customer helpline should be able to provide more information on relevant schemes. Note that a landlord/tenant does not necessarily need to be a customer of the relevant supplier to benefit from a CERT scheme – a supplier can count any installation towards their target.

The Landlord’s Energy Saving Allowance (LESA)

The Landlords Energy Saving Allowance (LESA) is administered by HM Revenue and Customs (HMRC). It allows private landlords who pay income tax to offset up to £1,500 spending on certain energy efficiency measures per dwelling (not per building) per year. The qualifying measures are loft, cavity, floor or solid wall insulation, draught proofing and hot water system insulation. The scheme has been extended to 2015, and covers all of the UK. More information on the LESA can be found at http://www.hmrc.gov.uk/budget2007/bn63.htm or by contacting the relevant local authority or local HMRC enquiry centre.

Warm Front

Warm Front is the Government’s main fuel poverty initiative, and is open to households on certain benefits in England. Grants of up to £2,700 are available (or £4,000 for dwellings with oil fired heating systems). The landlord does not need to be eligible personally: if the tenants qualify then the property is eligible.

More information is available from http://www.warmfront.co.uk

Reference: Communities and Local Government guidance for landlords