There are a range of grants and loans for landlords, but what is available from council to council varies. Many local authorities feel that landlords shouldn't have access to grants and loans because they have built up a substantial amount of equity in the property, however, others believe that by having access to these funds tenants will reside in acceptable accommodation.
There are, however, grants available for energy efficiency, HMO conversion and the renovation empty properties for use by tenants. This form of funding is very complicated and each council has different criteria for awarding the grant to landlords. For example, some means-test landlords to assess whether they are eligible for the award and others specifically target landlords that have secure tenants in place.
Becoming energy efficient
Following the introduction of Home Information Backs (HIPs), it has become easier for homes to be given an energy rating. A recent study revealed that an average four-bedroom house has an energy efficient rating of 'E' - which is quite bad considering that 'A' is the best and 'G' is the worst.
Making a property energy efficient can be a very expensive task, but having loft and cavity wall insulation not only helps increase the property's value, but has also become essential if owners wish to improve the saleability of the property.
Pre 1990 houses and those built between 1935 and 1980 are the worst affected and are the primary targets for the Heat Project grants, but this doesn't mean that houses built since then can't get financial assistance.
It is estimated that by installing loft and cavity wall insulation a household can save as much as £250 on their annual fuel bill, not to mention reducing their carbon footprint. In order to qualify for this grant, at least one member of the household, including tenants, must receive one of a list of benefits, including income support, housing benefit or pension credit.
HMO conversion grant
In April 2006, the government introduced a new legislation that required landlords to licence their property if it fell into HMO status. A HMO is basically a building, or part of a building, that is occupied by people who don't live as a single household - with a family relationship. This group of people must also share basic amenities, for example a toilet or bathroom.
Self contained flats that were originally one very large house can also come under the HMO legislation if the conversion was below the Building Regulations standards set out in 1991 and tenants acquire at least a third of the flats.
The HMO conversion grant can be anything up to £30,000 and is used to bring the property in line with the minimum HMO standards. This type of work includes fitting the appropriate fire precaution and safety measures for tenants and meeting the minimum standards required for fixed amenities, such as kitchens and bathrooms.
There are many conditions to meet in order to be eligible for the HMO Conversion grant and these vary depending on your local council. The best thing to do, before applying for the grant, is to check whether or not you are eligible to receive the funding with your local council.
Empty property grant
If you own a property and it has been empty for more than one year, you have the option of being able to let it to council-nominated tenants on a long term lease - usually between five and ten years. If you do this, you could be eligible for an Empty Property grant.
This form of funding covers 50 per cent of the cost of renovation work, including any heating or insulation work. The grant can also be used for properties that are in a substantial state of disrepair or to convert a property from being a single household to a multi household.
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