The government has made a significant policy shift, scrapping the previously proposed 2028 deadline for new tenancies to meet EPC C energy-efficiency standards. The updated Warm Homes Plan now sets a more achievable target, requiring all private rented properties to reach EPC C standards by October 2030. While the cost cap for upgrades has been lowered, landlords are still expected to make essential energy-efficiency improvements, with financial support available in some cases.
Energy Secretary Calls for Better Standards
Energy Secretary Ed Miliband emphasised the government’s intent to hold landlords accountable, stating the plan will “call time on landlords who don’t meet energy-efficiency standards.” Miliband highlighted that tenants deserve homes that are safe, warm, and affordable, and the government aims to ensure rental properties meet these minimum standards. Under the Warm Homes Plan, landlords can choose between using smart or heat metrics to improve energy efficiency, giving some flexibility in meeting the requirements.
The maximum investment landlords are expected to make is £10,000, reduced from the original £15,000 cap. For properties where £10,000 represents 10% or more of the property’s value, the cap will be adjusted further. Importantly, any energy-efficiency work undertaken since October of the previous year will count towards this limit. In addition, government-backed financial support schemes, such as the Boiler Upgrade Scheme (BUS) grants, will be available to help cover the cost of upgrades.
Industry Reaction: Landlords and Experts Respond
Industry bodies have welcomed the clarity but warn that challenges remain. Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), noted that the government’s original proposals were unrealistic and unlikely to be delivered. He praised the revised plan for being more pragmatic and said the NRLA looks forward to working with the government to ensure its ambitions are achievable in practice.
However, concerns remain about the financial burden on landlords and the lack of long-term funding commitments. Timothy Douglas, head of policy and campaigns at Propertymark, highlighted that substantial and potentially expensive upgrades will be required, particularly for older, complex, or hard-to-treat properties. He warned that a one-size-fits-all approach to energy efficiency is not viable. Without clear guidance, phased targets, and practical funding support, some landlords may withdraw properties from the market, potentially reducing supply and increasing costs for tenants.
EPC C Compliance and Commercial Properties
While the domestic rental sector now has a defined timeline, experts say commercial landlords are still in the dark. Douglas noted there is no clarity on the minimum energy-efficiency standards for non-domestic properties, despite expectations that commercial buildings will be required to meet EPC B by 2030. The lack of guidance on exemptions, interim targets, enforcement, and financial support has left landlords uncertain about how to plan for future compliance.
Rob Wall, assistant director for sustainability at the British Property Federation, welcomed the clarity on domestic EPC reform but described the 2030 compliance deadline as ambitious. He also criticized the government for leaving commercial properties out of the plan, warning that delays and uncertainty could negatively affect investment and the UK’s overall competitiveness.
Financial Support and Practical Guidance
Landlord organisations, including iHowz, have stressed the importance of financial incentives and clear guidance to make EPC C compliance achievable. Rodney Townson of iHowz said that while the plan provides opportunities to improve energy efficiency and cut tenant bills, landlords will face challenges, particularly in retrofitting flats or properties with limited space. Government grants and support will be essential to ensure landlords can upgrade properties without excessive financial strain.
Townson emphasised that clear guidance and timely access to funding will be critical in turning the Warm Homes Plan into a shared success, ensuring rental homes are both sustainable and affordable while keeping the private rental sector viable.
Looking Ahead
The Warm Homes Plan reflects a step towards improving the energy efficiency of the UK’s private rental sector and meeting the government’s net zero targets by 2050. While the delay to 2030 and the reduced cost cap have been welcomed, the success of the plan will depend heavily on practical implementation, financial support, and continued engagement with landlords and industry experts. Without these measures, there is a real risk of unintended consequences, including reduced rental supply and higher costs for tenants.
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