Landlord Storage Heater Grant

Minimum Energy Efficiency Standards Regulations came into force in April 2018 which require that privately rented properties have an EPC energy efficiency rating of no worse than E.  As far as this affects the ECO Scheme, the government is of the opinion that landlords are responsible for providing a working heating system in privately rented homes.

The following comment appeared in an explanatory memorandum to the ECO 2018 Statutory Instrument:

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 prescribe, subject to exceptions, a minimum level of energy efficiency for private rented properties. Therefore, the use of ECO in certain circumstances will be restricted so that ECO measures are not obtained by landlords to meet their statutory requirements. Similar restrictions will apply in Scotland.

We will telephone your tenant to confirm which state benefits they receive and to check that any other related qualifying conditions are satisfied.

If your tenant qualifies for the Landlord Storage Heater Grant scheme, we will arrange for a local ECO Accredited Installer to survey the heating system and apply for ECO funding to replace the faulty storage heaters.

How long does the process take?

The whole process will take a few weeks but before the new electric storage heaters are installed your permission as owner or the property will be required. Also, as owner of the property, it is in your interest to keep in touch with your tenant throughout this process to ensure that it runs smoothly.

Who will own the new Electric Storage Heaters?

As owner of the property you will own the new electric storage heaters and if the tenant moves out, they cannot remove them. If the tenant moves to another rented property, they can apply again for a Storage Heater Grant or a Boiler Grant if the conditions apply.

What if I own other rental properties?

Each case is taken on it’s own merit and you can apply for a Landlord Storage Heater Grant or a Landlord Boiler Grant for other properties which you own. The main criteria for qualification are that the tenant receives the correct State Benefits and faulty storage heaters are installed in the property.

To Qualify for a Landlord Storage Heater Grant YOUR TENANT must satisfy ALL 3 of the following criteria:

1. The property your tenant lives in must be rented from you as a private landlord. Different rules apply to social housing (council and housing association properties).

2. Your tenant must receive one of the following State Benefits:

• Guaranteed Pension Credit (Savings Credit and ordinary State Pension do NOT qualify on their own).
• Child Tax Credit*
• Working Tax Credit*
• Universal Credit*
• Income Support
• Income-Related Employment and Support Allowance
• Income-Based Job Seeker’s Allowance

* Maximum household income thresholds (based on the number of adults and children who live in your home) apply to these State Benefits.

3. There must be at least one faulty electric storage heater installed in your rental property AT THE TIME OF APPLICATION for a Landlord Storage Heater Grant.

In some cases, yes.

From 1st April 2017 a new system of ‘Deemed Scores’ is used to determine the value of the Affordable Warmth Scheme Grants. The amount of the grant in each case depends on the type of property, how many bedrooms it has, the type of heating system installed and several other factors.

If the landlord storage heater grant does not cover the full cost of installation, a contribution to the cost of installing new storage heaters may be required. However, if both you and your tenant decide not to make a contribution, you can withdraw the grant application and there will be no cost to either you or your tenant.

The amount of the Landlord Storage Heater Grant awarded for your rental property is based on the ‘Long Term Savings’ achieved by replacing inefficient storage heaters with new energy efficient ones.

Consequently, storage heater grants tend to be higher for larger properties with poor energy efficiency ratings where energy efficiency improvements are easier to make. Small houses and flats are more likely to require a contribution.

Nevertheless, installing new, energy efficient storage heaters will improve the energy efficiency of your rental property whilst reducing heating bills for your tenant.

Modern storage heaters are up to 30% more energy efficient than older versions. Also, having new storage heaters installed in your rental property will make it more attractive to potential new occupants when it becomes available for rent again.