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Private Rented Sector Landlord Loan: Overview

Everything you need to know about the Scottish Government funded loan that supports registered private landlords to improve the energy efficiency of their properties and meet minimum standards.

There are certain things you need to do to qualify for the loan, both when applying and carrying out the work.

We’ve answered some of the more common questions below and there are also links to important information that you should read before applying. You’ll find more information on our application form but if you have any questions, just give us a call on 0808 808 2282.

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.  

Applications will only be accepted from individuals or official representatives of the business that will own the equipment, materials and property at the time the loan is paid.

Applications will not be accepted from installers, property developers, letting agents or self-builders. 

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

Eligible properties

  • We will only offer funding to landlords for improvements to domestic dwellings in Scotland which are listed on the Scottish Landlord Register and are not used as a holiday home or second home.
  • The property must be registered with the Scottish Assessors Association as paying domestic council tax rates.
  • The property must already be built – it cannot be under construction.
  • Properties must be currently occupied by at least one tenant or will have at least one tenant in place within 30 days of the loan being paid.

What you need to do

  • You must contact Home Energy Scotland personally to get impartial advice about your property or properties, which will help decide the best options for you. 
  • You must only apply using the form provided to you by Home Energy Scotland.

How much can you borrow?

The amount you can borrow depends on how many domestic properties you have in your portfolio:

  • Landlords with five properties or fewer in their portfolio can borrow up to £100,000.
  • Landlords with six or more properties in their portfolio can borrow up to £250,000.

The amount you can borrow also depends on what improvements you want to make. They’re grouped into two types: 

Energy efficiency improvements

What you can borrow in this category for each property is £15,000. There are also conditions attached to these amounts. Read Private Rented Sector Landlord loan - in detail to find out more. Some of the eligible technologies are listed below.

Maximum loan amount available for each energy improvement:

  • External/internal wall insulation: £10,000
  • Heating system (gas, LPG or oil boilers): £5,000
  • Heating system (warm air units or high heat retention electric storage heaters): £5,000
  • Gas connection: £5,000
  • Glazing (only available for improving single glazing and not for replacing or improving existing double glazing): £4,500
  • Insulated doors: £4,500
  • Flat roof or room-in-roof insulation: £4,000
  • Loft, floor or cavity wall insulation: £1,000

Renewable systems (including energy storage systems and district heating scheme connections) 

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. Read Private Rented Sector Landlord loan - in detail to find out more. Some of the eligible technologies are listed below.

Maximum loan amount available for each renewable system:
 
  • Wind or hydro turbines: £2,500
  • Solar photovoltaic (PV) or solar water heating systems: £5,000
  • Energy storage systems (heat or electric batteries): £6,000
  • Hybrid solar PV water heating systems: £7,500
  • Heat pumps (air source, ground source, water source or hybrid): £10,000
  • Biomass boilers and stoves: £10,000
  • Connections to a renewably powered (either fully or partially) district heating scheme: £5,000

In addition, we will review any improvements listed in Schedule 1 of the Energy Efficiency (Domestic Private Property) (Scotland) Regulations 2020 but not listed above on a case-by-case basis.

Secondary improvements

You can also borrow up to £500 for what are known as secondary improvements. They’re not available on their own – you need to combine them with one of the energy efficiency improvements or renewables systems listed above. Examples include cylinder thermostats, heating controls or hot water jackets. Talk to our advisors to find out more. Call us on 0808 808 2280 or request a callback today.

Fees and interest

Loans are administered by Energy Saving Trust. Successful loans are subject to an administrative fee of 1.5% 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 will need to repay. Applicants with five properties or fewer in their portfolio will not be subject to interest. Applicants with six or more properties in their portfolio will be subject to interest at a rate of 3.5% APR.

Get in touch

Call us on 0808 808 2282 or request a call back today. You can only get an application from our advisors and they'll also help with any enquiries you may have.

Call me back

Loan in detail

Find out about repayment periods and other important conditions of the loan.

Find out more

Choosing the right installer

Find out about the specific requirements installers need to have, as well as certain things you must do to apply for the loan.

More details