GBIS and ECO4 for Landlords with Tenants in EPC D-G Homes

Understanding GBIS and ECO4 for Landlords with Tenants in EPC D-G Homes

As a landlord, ensuring your property is energy efficient is more than just a responsibility—it is a way to provide lower costs for your tenants and improve the energy performance rating (EPR) of your properties. 

There are two government-backed schemes: The Great British Insulation Scheme (GBIS) and the Energy Company Obligation 4 (ECO4), which offer substantial support in making this possible. Let’s break down what these schemes entail and how they can benefit you and your tenants.

What Are GBIS and ECO4?

GBIS is an initiative designed to help homeowners and landlords improve their property’s energy efficiency. This scheme targets properties with an Energy Performance Certificate (EPC) rating of D to G, offering support for installing insulation measures like cavity wall insulation, loft insulation, and more. It’s a straightforward way to upgrade your property without a massive out-of-pocket expense.

ECO4 focusses on a whole-house approach and is part of a long-running scheme aimed at reducing carbon emissions and energy bills by improving the energy efficiency of homes, particularly for low-income and vulnerable households, requiring homes to reach higher energy efficiency standards. The current phase, ECO4, extends until March 2026 and continues to focus on comprehensive home improvements.

Why Does This Matter for Tenants?

For tenants with health issues, living in a poorly insulated home can exacerbate their conditions, especially in winter. The NICE guidelines specifically highlight the risks associated with cold homes, such as increased respiratory and cardiovascular problems. By improving insulation and heating, you can significantly reduce these risks, making your property not just more comfortable, but healthier for your tenants.

Additionally, tenants who are on benefits or have a low income are more likely to qualify for these schemes, allowing you to make these improvements at a reduced cost.

Why Does This Matter to Landlords?

Making use of these schemes can significantly improve your property’s energy efficiency, making it more comfortable for your tenants and reducing their energy bills. For landlords, this means fewer complaints about cold and draughty homes and a higher likelihood of tenants renewing their leases. Furthermore, these improvements can increase the overall value of your property.

What Can Be Installed?

Under GBIS, the following insulation measures are typically covered:

• Loft Insulation
  
• Cavity Wall Insulation
  
• Solid Wall Insulation (both internal and external)
  
• Underfloor Insulation
  

For ECO4, the range of measures is broader, including:

• Insulation Measures

• Heating Controls
  
• Ventilation Improvements
  
• Solar PV
• Boilers, Heating Controls and Thermostatic Radiator Valves
• Air Source Heat Pumps
  

Eligibility Criteria

To take advantage of GBIS and ECO4, your property and tenants need to meet certain criteria:

GBIS:

• Property EPC Rating: The home must have an EPC rating of D to G.
  
• Council Tax Band: In England, the property must be in Council Tax bands A-D (A-E in Wales).
  
• Tenant Income: If your tenants are on benefits, such as Universal Credit, Pension Guarantee Credit, or similar, they qualify for additional support provided the home fits stated criteria.
  

ECO4:

• Tenant Benefits: Tenants must be in receipt of certain benefits, including Child Tax Credit, Income Support, Housing Benefit. In some circumstances even council tax reductions can count as a means-tested benefit.
  
• EPC Rating: Similar to GBIS, homes with an EPC rating of D to G are eligible.
  
• Local Authority Referrals: ECO4 Flex allows for referrals from local authorities for tenants who may not meet the standard benefit criteria but still require energy efficiency improvements due to low income or health issues.
  

How to Get Started

If you think your property and tenants might qualify, the next step is easy. Simply schedule an assessment using this booking link. A professional will assess your property and determine what improvements are possible under these schemes. The process is straightforward and can lead to significant savings on energy bills, while also ensuring your tenants live in a healthier, more comfortable environment— make sure that your tenants are aware of these schemes and get their permission to proceed with the necessary upgrades.

Taking the initiative to improve your property’s energy efficiency isn’t just good for your tenants—it is good for your investment(s). By leveraging the support available through GBIS and ECO4, you can make your property more appealing, reduce your tenants' utility costs, and provide a better living experience for those who need it most.

Remember, it is not just about insulation or new heating systems—it is about making a difference in the quality of life for your tenants. Take action today and explore the benefits these schemes can offer.