Warm Homes: Local Grant - Complete Guide for Landlords
The new flagship scheme offering up to £30,000 for comprehensive energy efficiency upgrades
Comprehensive energy efficiency work being carried out on a British terraced house
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Launched in January 2026 as part of the government's Warm Homes Plan, the Warm Homes: Local Grant is the most generous funding scheme ever offered to UK private landlords. With up to £30,000 available for the first qualifying property, this scheme can fully fund comprehensive energy efficiency upgrades including insulation, heating, and low carbon technologies.
The scheme is delivered through local authorities, making it essential to check whether your council is participating and what their specific eligibility criteria are. This guide covers the national framework, but local variations may apply.
Scheme Overview
The Warm Homes: Local Grant is part of the government's Warm Homes Plan announced in October 2025. It replaces and significantly expands the previous Local Authority Delivery (LAD) scheme, with greatly increased funding and broader eligibility.
The scheme has two main components:
Energy Performance Package
Up to £15,000
Covers insulation (loft, cavity, solid wall, floor), draught proofing, and other fabric improvements to reduce heat loss and improve EPC rating.
Low Carbon Heating Package
Up to £15,000
Covers heat pump installation (air source, ground source), solar thermal, and associated work like radiator upgrades or hot water cylinders.
Funding Amounts
The funding structure differs depending on whether it is your first qualifying property or additional properties in your portfolio.
Warm Homes: Local Grant Funding Structure
| Improvement | Low Estimate | High Estimate |
|---|---|---|
| First property - Energy Performance100% funded. No landlord contribution required. | £0 | £15,000 |
| First property - Low Carbon Heating100% funded. No landlord contribution required. | £0 | £15,000 |
| Additional properties - Energy PerformanceUp to 50% funded. Landlord pays remaining 50%. | £0 | £7,500 |
| Additional properties - Low Carbon HeatingUp to 50% funded. Landlord pays remaining 50%. | £0 | £7,500 |
Actual funding depends on property needs and local authority allocation.
Important: First Property Definition
"First property" means the first property you upgrade through this specific scheme, not your first rental property overall. If you own multiple properties, the first one you apply for gets 100% funding, while subsequent applications require 50% contribution.
Strategy tip: Apply for your most expensive-to-upgrade property first to maximise the benefit of 100% funding.
Eligibility Requirements
To qualify for the Warm Homes: Local Grant, your property and tenant must meet certain criteria. Unlike ECO4, this scheme does not require the tenant to be on specific benefits, but there is an income threshold.
Property Requirements
- EPC rating of D, E, F, or G
- Property in England (separate schemes for Wales, Scotland)
- Privately rented (not social housing)
- Council tax band A-D (some councils include E)
- In a participating local authority area
Tenant Requirements
- Household income below £36,000 gross
- Tenant must consent to works and assessment
- Cannot be a family member of the landlord
- OR property is in fuel poverty (high energy costs relative to income)
Tenant Income Threshold
The £36,000 gross household income threshold is more generous than many other schemes. This means tenants do not need to be on benefits to qualify, just earning under the threshold.
Understanding the Income Threshold
- Gross household income: Total income before tax for all adults in the household combined.
- £36,000 covers many tenants: A couple each earning £18,000 qualifies. A single person earning £35,000 qualifies.
- No benefit requirement: Unlike ECO4, tenants do not need to be receiving benefits, just under the income threshold.
- Evidence required: Tenants will need to provide evidence of income (payslips, tax return, benefit statements).
What Is Covered
The Warm Homes: Local Grant covers a comprehensive range of energy efficiency measures, split into the Energy Performance package and the Low Carbon Heating package.
Energy Performance Package (up to £15,000)
- Cavity wall insulation
- Internal solid wall insulation
- External solid wall insulation
- Loft insulation
- Room-in-roof insulation
- Floor insulation
- Draught proofing
- Window and door upgrades (where needed for insulation)
- Smart heating controls
Low Carbon Heating Package (up to £15,000)
- Air source heat pump
- Ground source heat pump
- Solar thermal panels
- Radiator upgrades (when needed for heat pump)
- Hot water cylinder (when needed)
- Underfloor heating (in some cases)
How to Apply
The Warm Homes: Local Grant is administered through local authorities, not directly through central government. The application process varies by council, but generally follows this structure.
Application Process
- 1Check your local authority is participating
Not all councils have signed up to deliver the scheme yet. Check your council's website or contact them directly.
- 2Confirm eligibility
Check EPC rating (D or below), tenant income (under £36,000), and council tax band.
- 3Submit application through council
Complete application form (usually online) with property details, tenant consent, and income evidence.
- 4Property assessment
Council-appointed assessor visits property to determine suitable measures.
- 5Receive improvement plan
Council provides recommended measures and funding allocation.
- 6Works carried out
Council-approved installers complete the work. Quality checked on completion.
Participating Councils
The Warm Homes: Local Grant is being rolled out progressively across England. Not all local authorities have signed up yet, and those that have may have different timescales for accepting applications.
Finding Your Local Scheme
As the scheme is new (launched January 2026), the list of participating councils is still growing. To check your area:
- 1. Visit your local council website and search for "Warm Homes Local Grant" or "energy efficiency grants"
- 2. Call your council's housing or environmental health department
- 3. Check the GOV.UK Warm Homes Plan page for participating authority lists
- 4. Contact your local Citizens Advice for guidance
Landlord Obligations
Accepting Warm Homes: Local Grant funding comes with certain obligations that landlords must agree to. These are designed to ensure the improvements benefit tenants rather than simply increasing property value at public expense.
Comparison with ECO4
Both the Warm Homes: Local Grant and ECO4 can fund similar improvements. Here is how they compare:
| Feature | Warm Homes: Local Grant | ECO4 |
|---|---|---|
| Maximum funding | Up to £30,000 | Varies (often £10,000-£15,000) |
| Tenant requirement | Income under £36,000 | Receiving qualifying benefits |
| EPC requirement | D, E, F, or G | D, E, F, or G |
| Low carbon heating | Yes, up to £15,000 | Sometimes, varies by installer |
| Rent restriction | Yes | Not typically |
| Application route | Local authority | ECO installer or LA Flex |
| Availability | Participating councils only | Nationwide |
Your Next Steps
- 1
Check if your council participates
Contact your local authority to confirm they are delivering the Warm Homes: Local Grant.
- 2
Discuss with your tenant
Explain the scheme benefits and check if their household income is under £36,000.
- 3
Check your EPC
Confirm your property is rated D or below. Get a new EPC if needed.
- 4
Apply through your council
Submit application with required documentation and await assessment.