"When you combine EPC changes with the abolition of Section 21 and a possession regime that depends entirely on evidence and process, self-management becomes far more fragile"
- Ian Macbeth - Avocado Property
The government’s renewed push on energy efficiency in the private rented sector is set to increase pressure on landlords who manage properties themselves, according to a senior brokerage figure.
Ian Macbeth, co-founder and managing partner of Avocado Property, argues the policy direction creates a growing commercial opportunity for professional letting agents, as compliance demands become more complex and interconnected.
Ministers this week set out further detail on the Warm Homes Plan and confirmed that Energy Performance Certificates will be reformed from 2026. While key timelines and enforcement mechanisms remain undecided, the announcement signals tougher expectations around energy standards in rented homes.
The Warm Homes Plan includes a £15 billion commitment to upgrade up to five million properties by 2030. Measures include a £7,500 heat pump grant, incentives for solar panels, and government-backed loans for energy efficiency improvements. Although the policy is framed around reducing household energy bills and fuel poverty, the government has made clear that landlords will play a central role in delivering warmer, more efficient rental homes.
Alongside this, EPC reform aims to change how energy performance is measured and presented. Consultation documents point to revisions in calculations, reporting formats, and update frequency. These changes sit within wider efforts to raise minimum standards across the private rented sector and follow years of debate around stricter energy efficiency requirements for rental property.
Evidence and process
“Energy efficiency reform doesn’t exist in isolation,” said Ian Macbeth, co-founder and managing partner of Avocado Property. “When you combine EPC changes with the abolition of Section 21 and a possession regime that depends entirely on evidence and process, self-management becomes far more fragile.”
More than 23% of UK lets are now managed through DIY platforms such as OpenRent. Avocado argues that regulatory momentum is now pushing the sector towards greater professional oversight.
“For years, agents have been competing with DIY platforms on price,” Macbeth explained. “That was always a difficult battle. What’s changing now is that risk is moving decisively back into the conversation.”
He said energy efficiency obligations are likely to expose the limits of casual self-management. “Understanding EPC ratings, future benchmarks, improvement requirements and how all of that interacts with tenant rights is not a side project,” he noted. “It requires structured processes, accurate records and technical oversight throughout the tenancy.”
According to Macbeth, this shift allows agents to reposition full management services around risk and compliance rather than administration alone.
“Agents who can demonstrate that compliance is built into their model, not bolted on, are in a strong position,” he added. “The next 12 months are a chance for letting agents to reset how they present their value, particularly to landlords who have been managing properties themselves.”
With EPC reform expected to develop further over the coming year, and major elements of the Renters’ Rights Act due to come into force on 1st May, Macbeth said agents should use the remaining time to tighten their own systems and prepare landlords for what lies ahead.
Key policy elements shaping the market include:
EPC reform scheduled from 2026, with changes to how energy performance is assessed and reported
A £15 billion Warm Homes Plan targeting upgrades to five million properties by 2030
The interaction between energy standards, tenancy reform, and evidence-led possession rules
