Click to refer a friend

How ECO4 improvements will benefit landlords

The transition to the new Home Energy Model next year presents a unique opportunity for landlords in the private rented sector, especially in the context of making improvements under the current Energy Company Obligation (ECO4) scheme. The ECO4 scheme, aimed at reducing carbon emissions and tackling fuel poverty, provides funding for energy efficiency measures in homes across the UK. For landlords, engaging with ECO4 not only aligns with immediate financial incentives but also positions their properties favourably for the upcoming Home Energy Model requirements. Let’s explore how leveraging ECO4 can benefit landlords in preparation for this shift.

Strategic Improvements and Compliance

  • Future-Proofing Properties: By making energy efficiency improvements under ECO4, landlords can future-proof their properties against upcoming regulations. The Home Energy Model is expected to enforce stricter energy performance standards, and properties upgraded through ECO4 are more likely to meet or exceed these new benchmarks.
  • Compliance and Marketability: Upgrading properties now ensures compliance with both current and future energy efficiency requirements, enhancing the property’s marketability. A higher energy efficiency rating can be a key differentiator in the competitive rental market, appealing to environmentally conscious tenants and those looking to reduce utility costs.

Financial Benefits and Incentives

  • Access to Funding: The ECO4 scheme offers a pathway to access funding for improvements that might otherwise be financially burdensome for landlords. This can include insulation, heating upgrades, and the installation of renewable energy sources, among others.
  • Increased Property Value: Investments in energy efficiency can significantly increase property value. As the Home Energy Model comes into play, it’s anticipated that properties with higher energy ratings will not only attract tenants more easily but could also command higher rents.
  • Reduced Operating Costs: Energy-efficient properties typically incur lower operating costs. This can translate into lower energy bills for tenants, a strong selling point that can enhance tenant retention and reduce void periods.

Enhancing Tenant Relations and Social Responsibility

  • Improving Tenant Well-being: Energy-efficient homes contribute to a healthier living environment, which can have a positive impact on tenant well-being and satisfaction. This can lead to longer tenancy periods and lower turnover rates, directly benefiting landlords.
  • Contributing to Environmental Goals: By participating in the ECO4 scheme and preparing for the Home Energy Model, landlords contribute to broader environmental goals, including reducing carbon emissions and combating climate change. This not only reflects well on landlords’ social responsibility but also aligns with increasing tenant demand for sustainable living options.

Navigating the Transition

  • Assessment and Planning: Landlords should consider conducting comprehensive energy assessments of their properties to identify potential improvements eligible under the ECO4 scheme. This can help prioritise investments that will have the most significant impact on the property’s future energy rating under the Home Energy Model.
  • Engage with Experts: Consulting with energy efficiency experts or companies participating in the ECO4 scheme such as Euro Energy Group can provide valuable insights into the most cost-effective and impactful upgrades. These professionals can guide the application process for ECO4 funding and ensure that improvements align with both current and future energy efficiency standards.


The forthcoming introduction of the Home Energy Model represents a pivotal moment for the private rented sector, emphasising the importance of energy efficiency like never before. For landlords, proactively making improvements under the ECO4 scheme is a strategic move that promises multiple benefits, from financial incentives and increased property value to compliance with future standards and enhanced tenant satisfaction. As we look towards a more sustainable future, now is the moment for landlords to act, ensuring their properties are not only compliant but are also leading the way in energy efficiency and tenant appeal. Engaging with the ECO4 scheme today is a forward-thinking strategy that positions landlords for success in the evolving rental market landscape.