Private Rented Sector Landlord Loan

Registered private sector landlords can access the Private Rented Sector Landlord Loan for various energy efficiency improvements to their properties. For each property you own, there's funding up to £15,000 for energy efficiency improvements and up to £17,500 for combined renewable energy systems.

Individuals or businesses that own privately rented properties can apply for the Scottish Government-funded loan. It covers improvements like insulation, home renewable systems such as heat pumps, and even connections to approved district heating schemes.

Who can apply?

Registered private landlords, acting either as an individual or a business that owns privately rented properties, can apply. Funding is only available for businesses owned:

• by an individual in their capacity as a sole trader
• by some or all of the members of an incorporated association in trust for the association
• by either: a limited company; a limited liability partnership; a trust; a partnership; a registered society under the Co–operative and Community Benefit Societies Act 2014; or a Scottish Charitable Incorporated Organisation, or in any other capacity which Energy Saving Trust or the Scottish Government considers to be a business.

We’ll only accept applications from individuals or official representatives of the business that will own the equipment, materials and property at the time the loan is paid.

We will not accept applications from installers, property developers, letting agents or self-builders.

Still not sure if you can apply? Call us on 0808 808 2282 or complete our email contact form and our advisors will help.

Eligible properties 

Funding is offered to landlords for improvements to domestic dwellings in Scotland, which are:

• already built; they cannot be under construction
• listed on the Scottish Landlord Register 
• registered with the Scottish Assessors Association as paying domestic council tax rates
• currently occupied by at least one tenant or will have at least one tenant in place within 30 days of the loan being paid.

Properties used as a holiday or second home do not qualify for the Private Rented Sector Landlord Loan.

Energy efficiency: improvements

How much can landlords borrow to get energy efficiency improvements? <H3>

You can borrow up to £15,000 for energy efficiency improvements for each property, with conditions attached. Some of the eligible technologies are listed below.

• external/internal wall insulation: up to £10,000
• heating systems like warm air units or high heat retention electric storage heaters: up to £5,000
• improving single glazing, not replacing or improving existing double glazing: up to £4,500
• insulated doors: up to £4,500
• flat roof or room-in-roof insulation: up to £4,000
• loft, floor, or cavity wall insulation: up to £1,000.

There are requirements you should be aware of if you're interested in getting funding for energy efficiency improvements. 

Choosing the right installer when making energy efficiency improvements 

If you’re applying for a Private Rented Sector Landlord Loan, there are specific requirements installers need to have if you're making energy efficiency improvements, as well as certain things you must do before applying.

Energy efficiency improvements 

If you’re installing solid wall, underfloor, flat roof, or room-in-roof insulation, your installer must be TrustMark registered.

Find installers at Trustmark and the Green Deal Oversight & Registration Body. You may use a Green Deal certified installer if you cannot locate a TrustMark registered installer.

There is no requirement to use a specific installer for all other energy efficiency improvements.

Whatever the improvement or installation, we strongly recommend you do the following:

• contact at least three installers for quotes to give you a choice and to ensure good value for money
• make sure your chosen installer is fully qualified and, if possible, accredited with a relevant industry body and/or trade federation
• ask installers what guarantees they will provide for the quality of their work and what warranties they supply with the products.

Renewable systems 

How much can landlords borrow to implement renewable systems?

You can apply for up to two home renewable systems per property worth up to £17,500 in total, plus an energy storage system up to a maximum of £6,000. Some of the eligible technologies are listed below. 

Maximum loan amount available for each renewable system:

• Wind or hydro turbines: up to £2,500.
• Solar photovoltaic (PV) or solar water heating systems: up to £5,000. Only eligible for funding as part of a package together with a heat pump or high heat retention storage heaters. If you have already installed one or more of these improvements, you can apply for the remaining improvement(s) to complete the package.
• Energy storage systems (heat or electric batteries): up to £6,000. Only eligible for funding as part of a package together with a heat pump or high heat retention storage heaters. If you have already installed one or more of these improvements, you can apply for the remaining improvement(s) to complete the package.
• Hybrid solar PV water heating systems: up to £7,500.
• Heat pumps (air source, ground source, water source, or hybrid): up to £10,000.
• Biomass boilers and stoves: up to £10,000.
• Connections to a renewably powered district heating scheme, either fully or partially: up to £5,000.

Conditions of applying for funding for renewable systems, district heating connections, and energy storage systems 

There are requirements you should be aware of if you're interested in getting funding for renewables systems, district heating connections or an energy storage system.

Choosing the right installer when installing renewables 

If you’re applying for a Private Rented Sector Landlord Loan to install a home renewables system, there are specific requirements installers need to have, as well as certain things you must do before applying.

Renewable systems

Private Rented Sector Landlord Loans to install a renewable system, including zero and low-emission heating and electricity generation, come with conditions.

For example, your installer and the product must be certified under the Microgeneration Certification Scheme (MCS) for the system they're installing, except for micro-hydro systems.

You can search for MCS-certified installers in your area and read customer reviews on Energy Saving Trust's Renewables Installer Finder or browse this full list of MCS-certified installers.

Heat pump replacement

If you are applying for a Private Rented Sector Landlord Loan to replace an existing heat pump, you will need to provide a letter from an installer detailing why a replacement is the most suitable option for your home. This letter must include details of the existing system's fault(s).

Hydro systems

Applications for hydro systems will instead be assessed on a case-by-case basis.

We recommend using an installer accredited by the Renewable Energy Consumer Code (RECC) or recommended by the British Hydro Association.

Energy storage systems

If you’re using a Private Rented Sector Landlord Loan to install an energy storage system, the installer must:

• be MCS certified for the renewables system that will be connected to the battery
• be a member of the Trading Standards Institute accredited consumer code, which covers energy storage
• meet all manufacturers' guidelines for the system being installed, and have undertaken all relevant manufacturer training available in the UK
• meet the Institute for Engineering and Technology’s code of practice (for electric batteries only).

Please note: Funding is only available for energy storage systems if taken as a package of measures. Please see The Home Energy Scotland Grant and Loan page for more details.

Heat network connections 

For heat network connections, the installer of the connection must be approved by the scheme owner/operator.

Important loan conditions 

If you are applying for the Private Rented Sector Landlord Loan, please note the following important loan conditions.

• Funding operates on a first-come, first-served basis and is subject to availability.
• After we receive your application, we assess whether you're eligible and carry out affordability and credit checks. If your application is successful, we will send you a loan offer.
• You cannot start work on any installations until you receive the loan offer in writing.
• After you've had the work done, you'll need to get an updated EPC before we can issue the loan funds.
• You can add the cost of the post-installation EPC to the loan; you must note the EPC cost on your application form.
• You must ensure that any funding you receive does not breach European State Aid rules. If the European Commission decides that the loan funding received is incompatible with European State Aid rules, you will need to pay it back in full, with interest at the applicable rate.
• If your application is successful, you’ll need to pay an administrative fee of 1.5 per cent of the total loan value, up to a maximum of £250.

Fees and interest 

Energy Saving Trust administers these loans.

Successful loans are subject to an administrative fee of 1.5 per cent of the total loan value, up to a maximum of £250. The fee will automatically be added to the loan value and included in the amount that you need to repay. 

You do not pay interest on the loan if you have five properties or fewer in your portfolio.

You pay interest at 3.5 per cent APR if you have six or more properties in your portfolio.

Work must not commence before we have made a funding offer. You need to use a certified installer for certain improvements.

If you plan to apply to any other financial incentive scheme alongside the Private Sector Landlord Loan, check both loan's eligibility criteria to ensure you can meet their requirements. 

The Private Sector Landlord Loan is not linked to other schemes, and eligibility for the loan is not indicative of eligibility for any other incentives, and eligibility criteria may differ.

Energy Saving Trust is authorised and regulated by the Financial Conduct Authority. All loans are subject to availability, and terms and conditions apply.

Supporting documents - energy reports 

An acceptable energy report must recommend the improvements being applied for. Your application must include this report.

• If applying for energy efficiency improvements and/or renewables systems, the work must be recommended in an EPC or a Rental Property Energy Improvements Report.
• If applying for an energy storage system, then the system must be recommended as suitable for your property in a Rental Property Energy Improvements Report or Home Renewables Selector report.

Where to obtain energy reports

• Energy Performance Certificate (EPC): Check if you already have a valid EPC for your property or search for EPC assessors in your area via the Scottish EPC Register.
• Rental Property Energy Improvements Report: These are only valid if issued by a Home Energy Scotland specialist advisor following a visit to your property.
• Home Renewables Selector Report: These are only valid if issued by a Home Energy Scotland specialist advisor.

Repayment period and loan validity 

• You can choose how long to repay the loan, up to a maximum of eight years.

When you receive your loan offer, you have up to 12 months to complete the work and claim your funding. We’ll consider extension requests on a case-by-case basis.