A guide to home improvement grants in 2021

Wouldn’t it be great if someone stepped in to cover the cost of those most vital home improvements? Whether this is making your home more energy-efficient, or having a property which can accommodate your physical needs, there is help out there for homeowners.

Here are the home improvement grants available for UK residents in 2021…

Green Home Grant

Introduced in 2020, this grant allows homeowners and residential landlords to apply for a Green Home Grant voucher. This will help cover some of the costs associated with installing energy-efficient home improvements.

These vouchers can be worth up to £5,000 for average homeowners, and £10,000 for disadvantaged households. Those in the former category are expected to finance part of the project themselves.

Here are the rules you need to bear in mind when applying…

• For average homeowners, the scheme will only cover two-thirds of the costs involved. Therefore, if your project costs around £4,000, the voucher will be worth £2,680.

• If you or a member of your household receives one of the qualifying means-tested benefits, then the scheme will cover 100% of the costs involved, up to £10,000. However, landlords cannot benefit from this side of the grant.

• There are two categories of projects the voucher can be used for: primary and secondary. In order to undertake anything on the secondary list, you must first undertake a primary project. What’s more, the cost of your secondary project cannot exceed the amount spent on the primary works.

For example, if you received £400 to insulate a cavity wall, you can only receive up to £400 to complete a secondary project, such as draught-proofing.

• You must make sure the work is scheduled to be completed by 31st March 2022.

Learn more about the Green Home Grant.

Are you looking to make a greener home? See if your project qualifies for the Green Home Grant

Insulation grants

If you’ve got your sights on small scale eco-improvements, there are a number of grants out there which can help you claim home-boosting freebies. These are mostly aimed at recipients of other government benefit schemes, such as universal credit, tax credits, pension credit, or income-based benefits.

If you fall into any of the above categories, you might be able to claim…

• Cavity wall insulation. If your home was built between 1920 and 1990, there’s a good chance your home has gaps between the internal and external walls. By filling these cavities (either with mineral wool or foam) you could potentially save hundreds each year on energy bills.

• Loft insulation. If your roof lacks proper insulation, you could be losing up to a quarter of your home’s heat as it travels up, up, and away. Mineral wool is commonly used to cover your rafters and stop this energy escape from happening.

There are two energy providers who are offering to cover the cost of addressing these two issues - E.On and EDF. If you’re an existing customer to these companies and you meet their eligibility criteria, make sure you check to see if your home needs a little extra insulation.

See more details on E.On provided grants.
See more details on EDF provided grants.

Disabled Facilities Grant (DFG)

If you’re living with a disability and your current home isn’t designed to accommodate this, you might be able to benefit from a Disabled Facilities Grant. These are provided by local authorities and can pay for property adaptations to help improve the lives of people living with physical or mental health difficulties, as well as hearing, sight and speech impediments.

Adaptations can include…

• Improving your access to rooms and facilities, such as installing a stairlift or adding a downstairs bathroom
• Installing a heating system which properly meets your needs
• Adapting your lighting and heating controls to make them easier to use
• Widening doors and installing ramps

In order to benefit from this grant, you must intend to live in the property for at least five years after the project is complete. This should also be your only or main place of residence.

Learn more about DFG via the Government website.

You may be able to get funding if you're making your home more accessible.

Get paid to use solar panels

Solar panel enthusiasts may remember there was once a scheme which paid you to provide your surplus energy to the national grid. This was known as the feed-in-tariff (FIT) scheme and it closed to new applicants in March 2019.

Now there’s a new scheme on the block - the smart export guarantee (SEG).

As with the previous scheme, SEG will pay households who install solar panels and export their surplus energy to the national energy grid. You’ll still be able to retain all the energy you need to power your home, so you only need to sell what’s leftover.

Through this scheme, you’ll be able to shop around certain energy suppliers, who will offer to pay you a set rate for each kilowatt hour (kWh) you export. These rates vary, so it’s worth researching what’s on offer.
Sadly, this new scheme isn’t as generous as the old FIT one, but it’s still a tempting offer for anyone who’s been curious about switching to solar.

Finding finance for your project

A lot of the grants on offer in 2021 are geared towards specific types of homeowners. Either those with financial disadvantages or those who have specific medical conditions. You may find you don’t qualify for some of these grants, simply because the criteria is so specific.

However, even if you don’t qualify for a grant, there’s no reason why your project still can’t go ahead. Many people assume you need a big pot of savings to renovate their home, but this isn’t always the smartest way to transform your home.

Read more: ‘What's the best way of financing my project?’

If you want to understand your borrowing options and what projects you might be able to undertake, book a free no-obligation consultation with Resi Finance.

Please note:

• You may have to pay an early repayment charge to your existing lender if you remortgage.
• Your home may be repossessed if you do not keep up repayments on your mortgage.
• There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is £495.