Heather Campbell
If you’re a homeowner in Perthshire looking to build a new home or upgrade your current property, there are several local grants and schemes available that could help cover some of your costs. These initiatives are designed to boost energy efficiency, cut carbon emissions and promote sustainable development.
In this article we cover:
- Local grants for converting empty or underused buildings into homes
- Funding options for improving energy efficiency and reducing heating bills
- Support available for restoring historic properties in Perth and Kinross
- Self-build loans to help finance your new home
- National schemes to cut costs on insulation, heat pumps and VAT
- Programmes designed to keep rural housing affordable for locals
Adapt Your Property Grant
- Offers up to £75,000 (or 50 per cent% of costs) for converting underused or vacant town and city centre commercial spaces into residential use.
- Applicants must provide at least 50% -per cent match funding.
- Properties must have been vacant or underused for at least 6 months.
- More information: Adapt Your Property Grant
Perth City Heritage Fund
- Provides grants for the repair and conservation of historic buildings within Perth’s conservation areas.
- Supports projects like window and door repairs, shopfront restorations and masonry work.
- More information: Perth City Heritage Fund
Energy Efficiency Grants
- Available for homeowners to improve energy efficiency through insulation and other measures.
- Fully funded options may be available for eligible properties.
- More information: Energy Efficiency Grants
Empty Homes Initiative
- Offers grants of up to £7,500 per bedroom to bring long-term empty properties back into use.
- Provides support for feasibility studies and matching services for buyers and sellers.
- More information: Empty Homes Initiative
SCARF Energy Advice
- Provides free home energy visits and assistance in identifying funding opportunities for energy efficiency improvements.
- Eligible households may qualify for the ECO4 Grant Scheme, offering 100% funding for retrofits like solar panels and insulation.
- More information:SCARF
Perth and Kinross Heritage Trust Small Grants
- Supports smaller-scale repairs to historic buildings, such as sash and case window repairs, roof work, and masonry.
- Aims to preserve the region’s historic environment.
- More information: PKHT Small Grants
For the most current information and to explore additional funding opportunities, visit the Perth & Kinross Council Housing Grants page.
Regional and national grants available to homeowners
While Scotland has few direct grants specifically for self-build projects, there are several key initiatives and programmes that can help fund or reduce the costs of building or improving your home.
1. Scotland Self-Build Loan
This government-backed loan offers Scottish residents up to £175,000 to cover construction costs, giving you the support you need to get your project off the ground.
[adrotate banner="58"]The fund is designed for people who already own a plot of land or have arranged to buy one, as the loan doesn’t cover land purchases. You’ll also need planning permission and a building warrant in place to qualify. Once approved, the loan is paid out in stages as your build progresses, keeping everything moving.
It’s a practical option if you’ve struggled to secure standard bank funding, particularly in areas where getting a mortgage for a self-build can be tricky.
2. Home Energy Scotland Grant and Loan Scheme
Homeowners can access grants, interest-free loans or a combination of both for retrofitting their homes with eco-friendly heating options and energy efficiency measures funded by the Scottish government.
- There’s up to £15,000 funding available to install a heat pump. £7,500 is available as a grant, which is money you don’t have to pay back, with the additional £7,500 available as an optional interest free loan. If you live in a rural or island location you could qualify for a rural uplift.
- Fully funded grants up to 75 per cent of the combined cost of improvements to make your home more energy efficiency, such as installing insulation, are also available (up to £7,500 as a grant, or £9,000 if the household qualifies for the rural uplift). This can be added to the funding available to install a heat pump, or applied for on its own.
An uplift of £1,500 is available for rural and island homes to both the clean heating and energy efficiency grants.
3. Smart Export Guarantee
If you generate renewable electricity and live in England, Scotland or Wales, you could benefit from a Smart Export Guarantee (SEG) tariff.
The SEG is a support scheme that makes sure that people who generate their own electricity, such as through solar panels, are paid for the surplus electricity they export to the grid.
This doesn’t happen automatically, so you need to sign up to get the SEG tariff.
Under the scheme, all licenced energy companies with 150,000 or more customers must provide at least one SEG tariff. Smaller suppliers can offer an export tariff if they want to.
All suppliers can also choose to offer other means of making payments for exported electricity, separate to the SEG arrangements.
You need to apply directly to a SEG tariff supplier to start getting payments. Ofgem publishes a list of SEG licensees every year. The SEG supplier you choose doesn’t have to be the same one that provides your energy.
4. Rural Housing Burden
Open to self-builders or homebuyers in Scotland who need to live or work in a particular rural area, have strong local ties and plan to make the house their main home. This is a legal agreement that aims to keep housing affordable for local communities.
If you’re a self-builder, it lets you buy land from the local Rural Housing Body at a lower price to build your own home. The usual percentage discount of the open market value is between 20-40 per cent in the property sale price.
In return, the agreement makes sure the home stays affordable for future local buyers if you ever sell it.
Development Trust Association Scotland have a list of registered Rural Housing Bodies on their website.
5. Great British Insulation Scheme (GBIS)
You can get fully funded or part-funded home insulation to reduce heat loss and keep your home warm for longer. This was formerly known as the ECO+ scheme.
To qualify, your home must:
- have an EPC rating of D to G
- be in council tax bands A to E in Scotland.
6. VAT reduction for new builds and conversions
In Scotland (as in England, Wales and Northern Ireland), new builds are exempt from VAT, but you’ll need to keep all your receipts and apply for a refund at the end of the project. This zero VAT rate is available to self-builders (new builds).
If you’re converting or changing the use of a property that’s been unoccupied for at least 10 years, you can also claim back the VAT. Homes that have been vacant for two or more years before work begins qualify for a reduced VAT rate of 5 per cent — you can find a useful FAQ about this here.
There’s also a zero VAT rate for work carried out for people with a disability or terminal illness. For those over 60, the reduced 5 per cent VAT rate applies to mobility aids, heating upgrades and security improvements.
10 Warmer Homes Scotland
The Scottish government’s Warmer Homes Scotland programme offers support worth up to £10,000 or more for eligible households for energy-saving home improvements like heating and insulation to help make your home warmer and cheaper to heat.
Please note that this list is not exhaustive, and other grants may be available based on specific circumstances.
