Heather Campbell
A list of grants, financial supports and initiatives available to help with your self-build or home improvement project in England.
In this article we cover:
- List with links of what grants / financial supports are available in England today
- Energy upgrade grants
- What fiscal incentives exist
- What utilities have to offer
- Low income schemes
While England 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. Right to Build
The Right to Build helps self-builders in England by ensuring local councils make plots of land available. It’s a legal requirement for councils to offer enough serviced plots (with water, electricity and roads) to meet the demand of those signed up to their self-build register.
Who can apply?
[adrotate banner="58"]You must:
- Be 18 or older.
- Be a British, EEA or Swiss citizen.
- Plan to live in the home as your main residence.
What does it cover?
While it doesn’t provide funding, the scheme guarantees access to plots for self-build projects. You’ll need to pay for the land, but you can combine this with funding options such as:
- The Help to Build equity loan (see below), which offers financial aid for design, construction or project management costs.
- Government-backed mortgage schemes or specific self-build mortgages.
How to apply:
- Register on your local council’s self-build register.
- Wait for updates on plot availability.
- Explore funding options to support your project.
Further information and access to sign up to a UK-wide Right to Build register here.
2. Help to Build
The government backed Help to Build scheme supports self-builders by providing equity loans to make constructing a home more affordable in England, Scotland and Wales. It’s designed to help with upfront costs and make self-building more accessible to a wider range of people.
Who can apply?
To qualify, you must:
- Be 18 or older.
- Be a British citizen or have indefinite leave to remain in the UK.
- Secure a self-build mortgage from a lender registered with the scheme.
What does it cover?
The loan can be used to build a new home or customise an existing shell home. It covers up to 20 per cent of the land and build costs (40 per cent London). The maximum project value is £600,000, including up to £400,000 for construction.
How much can you get?
You’ll need a 5 per cent deposit and a self-build mortgage. The government loan bridges the gap, covering up to 20 per cent-40 per cent (depending on location) of your costs. The loan is interest-free for the first five years.
Interest
In year six, you’ll pay a total of 1.75 per cent interest on the equity loan amount you borrowed, divided into 12 monthly instalments.
For example, if you got an equity loan of £80,000, 1.75 per cent would be £1,400. You’d pay 12 monthly instalments of £116.67, adding up to £1,400.
From year seven onwards, the amount of interest you pay will go up in line with the consumer price index, plus per cent.
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.
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 D.
6. VAT reduction for new builds and conversions
In England (as in Scotland, 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).
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.
7. Grants for energy-efficient home improvements
There are various grants available to help cover the cost of upgrades like insulation, boiler replacements or low-carbon heating systems.
Below, we’ve outlined key funding schemes, their eligibility criteria and how to apply.
a) Boiler Upgrade Scheme (BUS)
What it covers:
- £7,500 for air source heat pumps
- £7,500 for ground or water source heat pumps
- £5,000 for biomass boilers
Who is eligible:
- Open to homeowners in England and Wales.
- No income criteria.
- The property must currently use oil, gas or electricity for heating.
Find out more and apply here.
b) Connected for Warmth
What it covers:
- Air source heat pumps
Who is eligible?
- If your home has an EPC rating of E, F or G.
- Your home must be heated by electricity, solid fuels, oil or LPG.
You must either:
- Be receiving means-tested benefits,
- Be on a low income and facing high energy costs, or
- Be vulnerable to the cold due to age, illness or disability.
Find out more and apply here.
c) Home Upgrade Grants (HUGs)
You could get government funded free energy saving improvements made to your home if you:
- Are a homeowner in England.
- Do not use a mains gas boiler as your main heating system.
What you can get:
If you’re eligible, your local council will arrange a home survey to see how your home could be made more energy efficient. They might suggest improvements like installing:
- Wall, loft and underfloor insulation,
- Air source heat pumps or
- Electric radiators
Your local council will then organise and pay for any improvement work they’ve agreed with you. You will not need to pay for it.
Eligibility
To be eligible you must:
- Own and live in the property you’re applying for.
- Not use a mains gas boiler as your home’s main heating system.
- Have an energy performance certificate (EPC) rating of D, E, F or G – if you do not know your home’s EPC you can find it out when you apply
You’ll usually need to have a household income of £36,000 a year or less. You might still be eligible even if you earn more than that in some postcode areas.
8. Energy Company Obligation
The Energy Company Obligation (ECO) is a government energy efficiency scheme in Great Britain designed to tackle fuel poverty and help reduce carbon emissions.
What it covers:
Insulation, boiler upgrades, solar panels and air source heat pumps.
You could be eligible for ECO if:
- You receive means-tested benefits or child benefit with a low income.
- Your household income is below £31,000 (EPC rating E, F, or G or D if you own the home).
- You have a long-term health condition and an EPC rating of E, F or G.
- If you don’t meet the exact criteria but live in a cold home with a low income, you may still qualify through the ECO4 Flexibility program, which allows local councils to broaden eligibility for those in fuel poverty.
Visit your local council’s website or Ofgem to learn more.
9. Disabled Facilities Grant
The Disabled Facilities Grant (DFG) helps homeowners in England and Wales make essential home adaptations to create safer and more accessible living spaces for people with disabilities.
You may be eligible if you:
- Have a disability or live with someone who does.
- Are a homeowner, private tenant, or housing association tenant.
- Need adaptations recommended by an occupational therapist, such as ramps, stairlifts, or accessible bathrooms.
- Eligibility is means-tested, except for children under 18.
Grants are available up to £30,000 in England. The exact amount depends on the cost of the work and your financial circumstances.
To apply, contact your local council, who will arrange an assessment and guide you through the process.
10. Community Land Trusts
If you’re finding it difficult to secure a building site and you’re happy to be part of a community-driven project, a Community Land Trust (CLT) might be the solution.
CLTs are non-profit groups that buy and manage land to benefit local communities, focusing on building affordable homes and providing shared resources.
CLTs give self-builders access to land at prices based on local incomes, not market rates. This helps make land more affordable in areas where rising costs can make self-building out of reach.
Being part of a CLT project means teaming up with others in your community to shape the development together. It’s a chance to work collaboratively, making the whole process smoother and ensuring the project reflects everyone’s shared vision.
While the CLT handles the overall land development, self-builders usually have the freedom to design and build homes that suit their needs, as long as they follow the agreed guidelines.
Many CLTs focus on eco-friendly building methods, making them a great option for self-builders looking to create sustainable homes. Plus, CLTs keep ownership of the land to help keep homes affordable for future generations.
Local councils and housing associations often partner with CLTs and can provide information about available plots or guidance on starting a new CLT in your area. Or visit the Community Land Trust Network for further information, and a map of current CLT locations.
Disclaimer: This list is not exhaustive, always consult with a qualified building professional. Schemes are subject to change.
Last update: December 2024
English