As the UK continues its push toward net-zero carbon emissions, landlords of Houses in Multiple Occupation (HMOs) have a golden opportunity to benefit from government-backed energy efficiency grants. The ECO4 Scheme for HMO landlords offers financial support to upgrade heating systems, insulation, and overall energy performance all at little to no cost.
If you own or manage an HMO property, understanding how ECO4 works can help you save money, attract tenants, and meet new energy regulations.
What is the ECO4 Scheme?
The Energy Company Obligation (ECO4) is a UK government initiative designed to help households reduce energy costs and carbon emissions. The scheme requires major energy suppliers to fund energy-saving improvements in qualifying homes, especially those occupied by low-income tenants or households in fuel poverty.Running from 2022 to 2026, ECO4 replaces the previous ECO3 scheme with an updated focus on whole-house energy efficiency, ensuring homes are upgraded comprehensively rather than with single improvements.
How ECO4 Benefits HMO Landlords:
For HMO landlords, the ECO4 scheme presents a unique opportunity to make properties more efficient and compliant with upcoming Minimum Energy Efficiency Standards (MEES) all while enhancing tenant satisfaction and property value.Here’s what you can gain:
Free or Subsidised Upgrades:
ECO4 funding can cover or significantly reduce the cost of:
- Loft insulation
- Cavity wall insulation
- Solid wall insulation
- First-time central heating systems
- Energy-efficient boilers
- Air source heat pumps
Higher EPC Ratings:
Properties with better Energy Performance Certificate (EPC) ratings attract higher rents and longer-term tenants. ECO4 improvements help boost EPC scores effortlessly.
Compliance with Regulations:
With the UK tightening energy efficiency laws, landlords must ensure properties meet minimum EPC standards (E or above). ECO4 upgrades help you future-proof your HMO against penalties.
Improved Tenant Retention:
Energy-efficient homes mean lower bills, something tenants truly appreciate. This helps reduce turnover and keeps your rooms fully occupied.
Who Can Apply for the ECO4 HMO Scheme?
ECO4 eligibility primarily depends on the tenants’ circumstances and the property’s condition. However, HMO landlords can apply if:
- The tenants receive qualifying benefits (such as Universal Credit, Housing Benefit, or Pension Credit).
- The property is energy inefficient (EPC rating D, E, F, or G).
- The property is privately rented and meets HMO standards.
Some flexible eligibility routes (known as LA Flex) also allow local councils to recommend properties for ECO4 funding, even if tenants don’t receive benefits.
How to Apply for ECO4 as an HMO Landlord:
Applying is simple, but working with the right ECO4 installer or grant specialist makes the process smoother.
Here’s how to get started:
- Check Property Eligibility: Verify your HMO’s EPC rating and tenant qualification status.
- Book a Free Assessment: An approved ECO4 assessor will inspect your property and recommend suitable improvements.
- Install Energy Upgrades: Certified installers carry out the improvements at little or no cost.
- Enjoy the Benefits: Lower energy bills, a more sustainable property, and happier tenants.
Why HMO Landlords Should Act Now:
Energy costs continue to rise, and regulations are becoming stricter. Delaying these upgrades could mean losing out on government funding or facing compliance penalties in the near future.
By joining the ECO4 Scheme, HMO landlords can:
- Increase property value
- Cut maintenance costs
- Meet new EPC standards
- Support the UK’s green energy mission
Apply for the ECO4 Scheme Today:
Don’t miss your chance to make your HMO property greener, warmer, and more profitable with funding support through the ECO4 scheme.
Apply today with Regen Grants Ltd and discover how much you can save on heating and insulation upgrades.
Let’s help you turn your HMO into an energy-efficient, future-ready property.
