A guide to the ECO4 scheme for landlords

The Energy Company Obligation (ECO) is a UK government energy-efficiency scheme designed to tackle fuel poverty and reduce carbon emissions. Now in its fourth phase, known as ECO4, the scheme places emphasis on improving the energy performance of homes occupied by low-income and vulnerable households.

Landlords of eligible properties may qualify for fully funded energy-efficiency upgrades under ECO4. These improvements not only support tenants by reducing energy costs but also enhance long-term property value and help meet compliance standards related to energy performance.

Why ECO4 matters for private landlords

The ECO4 scheme presents an opportunity for landlords to improve their property portfolios while supporting broader environmental goals. Installing modern, energy-efficient systems can:

Improve the Energy Performance Certificate (EPC) rating of your property
Reduce energy costs for tenants
Strengthen property value and rental appeal
Support compliance with minimum energy efficiency standards (MEES)
Contribute to UK carbon reduction targets

Participation in ECO4 is not only financially practical but also aligned with long-term policy trends affecting residential lettings in the UK.

ECO4 scheme: Landlord and tenant eligibility requirements

To access ECO4 funding, properties and tenants meet specific eligibility conditions.

Tenant Criteria

ECO4 applies where at least one tenant in the household receives one of the following qualifying benefits:

Income-based Jobseeker’s Allowance (JSA)
Income-related Employment and Support Allowance (ESA)
Income Support
Pension Credit Guarantee Credit
Working Tax Credit
Child Tax Credit
Universal Credit
Housing Benefit
Pension Credit Savings Credit
Child Benefit (with income thresholds and dependent children)

Please see more below.

In addition to benefits-based eligibility, local authorities may also assess households under the Local Authority Flexible Eligibility (LA Flex) route.

Through LA Flex, eligibility is extended to include:

A total household income is under £31,000 per year (before tax)
Someone in the home has a health condition made worse by the cold, such as:
- Respiratory illness such as asthma
- Cardiovascular issues
- Mobility limitations such as arthritis
- Cancer or immune disorders

Property criteria

The property must be located in England, Wales, or Scotland and must be a domestic dwelling. The property must have a current Energy Performance Certificate (EPC) rated at band D or below (D, E, F, or G) in order to benefit from the upgrades.

Check your EPC.

What energy-efficiency upgrades are available under ECO4?

A range of insulation, heating, and renewable energy solutions are available through ECO4. These are installed at no cost to eligible landlords and tenants, with funding provided directly to registered and accredited installers.

Common measures include:

Boiler upgrades – Replacement of outdated or inefficient boilers with modern A-rated models
Central heating systems – Installation of central heating in homes that lack it
Air source heat pumps and storage heaters – Low-carbon alternatives for space heating
Cavity wall insulation – Suitable for homes with unfilled cavity walls
Internal or external wall insulation – Improves heat retention and reduces draughts
Underfloor insulation – Reduces heat loss through ground floors
Solar photovoltaic (PV) panels – Generates electricity to offset demand from the grid

The measures installed will depend on the outcome of an in-home energy assessment, which is conducted by an authorised retrofit assessor. The assessment identifies the most appropriate upgrades based on the property type, construction, and current heating system.

Further Reading: ECO4 Guidance and Documentation

Installation standards and quality assurance

All works completed under ECO4 must comply with government-mandated standards. This includes:

PAS 2030:2019 – Specification for the installation of energy efficiency measures
TrustMark Certification – Ensures installers are registered and operating within recognised quality frameworks

Recognising the broader impact of ECO4

The ECO4 scheme is part of the UK’s long-term strategy to decarbonise housing and alleviate fuel poverty. By participating, landlords play an active role in meeting national carbon reduction targets, supporting public health, and strengthening community resilience.

From a tenancy management perspective, homes that are warmer and cheaper to heat tend to have:

higher tenant satisfaction
reduced turnover rates
fewer maintenance issues related to damp or cold

Investing in energy efficiency may also assist landlords in meeting anticipated future requirements, including proposed regulations for all rental homes to achieve EPC Band C by 2028.

Recommended actions for landlords

To take full advantage of the ECO4 scheme, contact one of the ECO4 scheme providers registered with us. Our approved installers will discuss eligibility with your tenants, talk them through the application process and the necessary steps to complete the upgrades.

For landlords committed to improving their properties and supporting national energy goals, ECO4 provides a practical route to achieving both.

How can landlords benefit from the ECO4 scheme?

The ECO4 scheme provides numerous benefits to landlords. First, it provides financial assistance for implementing energy-saving measures, thereby reducing the burden of initial costs. All of these measures, such as implementing insulation, upgrading to energy-efficient boilers, and installing solar panels, can massively improve the energy efficiency of a property.

This improvement reduces the property’s ecological footprint and the tenants’ energy costs, thereby increasing the property’s appeal to prospective tenants. Over time, these energy efficiency enhancements can also increase the property’s value, giving landlords a greater investment return.

In addition, by participating in the ECO4 scheme, landlords contribute to the larger societal objective of reducing carbon emissions and promoting sustainability, thereby reinforcing their commitment to social responsibility.

Why should I apply for ECO4?

Applying for the ECO4 scheme is advantageous for multiple reasons. As a landlord, you will have access to funds to enhance the energy efficiency of your property without bearing the entire cost. This may involve upgrading your heating system, installing solar panels, or enhancing your home’s insulation.

In addition to the financial benefits, participation in the ECO4 scheme improves the energy efficiency of your property, resulting in lower energy expenditures for your tenants. This can increase the desirability of your property to prospective tenants and contribute to longer tenancies. In addition, you will contribute to broader efforts to combat climate change by reducing your property’s carbon footprint.

Is there a deadline for ECO4 applications?

As of September 2021, there were no specific application deadlines for the ECO scheme. However, each scheme phase has a predetermined length, and ECO4, like its predecessors, will likely have an expiration date. To ensure you take advantage of opportunities, you must remain current on the latest information from the government and the Energy Company Obligation.

Are landlords eligible for ECO4 assistance?

Yes, proprietors qualify for assistance through the ECO4 scheme. For a proprietor to qualify for the ECO4 grant, however, they must meet a number of requirements. Typical conditions include the property’s location in the United Kingdom and the tenants’ receipt of certain benefits or classifications as low-income households by local authorities.

The property’s energy performance certificate (EPC) rating can also influence the energy-saving measures that can be installed. For the most accurate and up-to-date information, it is suggested that landlords verify the eligibility requirements.