"The Government has clearly listened to our pragmatic proposals to improve its plans, and we look forward to working with it to ensure its ambitions work in practice."
- Ben Beadle - NRLA
Ministers confirmed their intention to ensure all rented homes that are able should achieve an Energy Efficiency Rating of at least 'C'. Following extensive campaigning by the National Residential Landlords Association, the Government announced several key changes in the Warm Homes Plan.
All private rented sector properties will now have a single deadline of October 2030 to meet the new standards. Proposals for an interim date of 2028 for new tenancies have been dropped. The NRLA had argued this earlier deadline was too tight, making it virtually impossible to meet.
The planned cap on landlord investment has been reduced from £15,000 to £10,000. However, the cost cap will be lower where £10,000 would represent 10% or more of a property's value.
Spending on energy efficiency works since October last year will now count towards the planned cap. The NRLA had warned that excluding historic spending created a perverse incentive to delay improvements that could boost a property's energy efficiency.
Funding support for the sector will be available, including continued access to Boiler Upgrade Scheme grants.
Recent Government data indicates just over 2.5 million private rented properties in England have an energy performance rating below 'C'.
"We have long supported the need to improve the energy efficiency of the rental housing stock," said Ben Beadle, chief executive of the National Residential Landlords Association. "However, the Government's initial proposals were simply unrealistic and had no hope of being delivered within the timescales originally set out. The Government has clearly listened to our pragmatic proposals to improve its plans, and we look forward to working with it to ensure its ambitions work in practice."
Timothy Douglas, Head of Policy and Campaigns at Propertymark, comments, “While the ambition of the Warm Homes Plan to improve energy efficiency and tackle fuel poverty is acknowledged, the proposals as they stand are deeply concerning for landlords and agents across both the residential and commercial sectors.
"In the private rented sector, landlords are being asked to deliver, in many cases, substantial and costly upgrades to reach EPC C by 2030, yet this is being imposed without clear, long-term funding commitments, realistic delivery timescales, or sufficient flexibility for older, complex, and hard-to-treat properties. A phased and realistic approach would allow landlords to maintain the Decent Homes Standard, manage costs effectively, and contribute meaningfully to the UK Government’s ambition to achieve net zero by 2050.
“Crucially, there remains no clarity on Minimum Energy Efficiency Standards for non-domestic property, despite expectations that commercial landlords will be required to meet EPC B by 2030. The absence of detail on interim targets, exemptions, enforcement, and financial support makes it impossible for landlords to plan responsibly or invest with confidence.
“Propertymark has consistently warned that a one-size-fits-all approach to energy efficiency will not work. Without certainty, genuine flexibility, and practical financial support, there is a serious risk that both residential and commercial landlords will withdraw properties from the market. This would reduce supply, drive up costs for tenants and businesses, and ultimately undermine the government’s stated objectives on affordability, energy efficiency, and economic growth."
David Weatherall, Head of Policy at BRE, said, “We welcome the publication of the Warm Homes Plan and the government’s wider commitment to addressing fuel poverty and cutting carbon emissions. Helping poorer households and the coldest homes is a key step to decarbonising the built environment and improving living conditions. The 9% of homes that are EPC "E" or below account for 55% of the fuel poverty gap so efficient use of Warm Homes Plan funding is imperative.
“It is good to see the government moving forward with plans for Minimum Energy Efficiency Standards to improve conditions in the private rented sector, where some of the coldest homes can be found.
“The Warm Homes Plan will offer low-income households a range of suitable upgrades, including insulation, which is vital. For other households, advice and wider support should unlock action on the full range of measures that can improve their home: reducing energy demand, and delivering low-cost, low-carbon energy.
“We look forward to reading the full contents of the plan and how its proposals will be rolled out. In particular, we await details on how the plan will give further support for sector innovation and address energy efficiency alongside other aspects of poor quality housing.
“It is essential that the plan is ambitious and sustainable to protect households, boost industry confidence and drive long-term progress.”
