Reports suggest that the Treasury and the Department for Energy Security and Net Zero (DESNZ) are in disagreement over how much landlords should contribute towards energy efficiency improvements to meet EPC C targets, according to The Times.
The dispute reportedly focuses on the Warm Homes Plan, a government initiative aimed at helping homeowners reduce energy bills and improve the efficiency of properties across the UK. The plan is expected to include grants for heat pump installations and additional support for renters and low-income households.
Originally scheduled to launch this month, the Warm Homes Plan has faced delays. A government minister recently stated that the rollout would now take place “before the end of the year,” without confirming a specific date. Members of the energy sector have expressed frustration, saying that the delay is holding up billions of pounds worth of investment.
One of the main points of contention is the proposed rule requiring landlords to pay for energy efficiency improvements in their rental properties. The debate reportedly revolves around how much landlords should be expected to spend, with the initial cap set at £15,000 per property upgrade.
Energy Secretary Ed Miliband has suggested that all privately rented homes should achieve an EPC C rating by 2030, with a 2028 deadline for new tenancies. This move is intended to make rented homes warmer and more energy efficient, but has sparked concern among landlords and property professionals.
Industry bodies warn that such a high spending cap could have unintended effects on the rental market. They argue that if landlords face large upfront costs, many could withdraw their properties from the market altogether, further reducing the supply of rental homes.
Timothy Douglas, head of policy and campaigns at Propertymark, said that while improving energy efficiency is important, the proposed cap could cause serious challenges for landlords already struggling with affordability. He explained that many operate on tight margins, and sudden financial pressures — especially for older or hard-to-retrofit homes — could force them to exit the market.
Douglas also called for a realistic implementation timeline, noting that any new requirements should be introduced gradually to give landlords time to adapt. He emphasised the importance of support schemes, tax incentives, and clear guidance to help landlords comply without facing financial strain.
He warned that if the policy is not balanced, it could create a “cliff edge” situation that punishes responsible landlords and reduces the number of available rental properties.
Industry experts and campaigners are urging the government to adopt a phased and collaborative approach, ensuring that the transition towards greener homes does not come at the cost of housing availability.
They argue that a one-size-fits-all cost cap fails to recognise the diversity within the rental sector, where property types and upgrade requirements can vary dramatically.
Meanwhile, both the Treasury and DESNZ have rejected claims of an internal dispute, calling them “categorically untrue.”
A spokesperson for the Department for Energy Security and Net Zero told The Times: “This is categorically untrue. Our comprehensive approach continues to focus on ensuring that our homes are warm, energy-efficient, and affordable to heat.”
The government continues to face pressure to clarify its stance on the Warm Homes Plan and provide firm details on both the cost cap and rollout schedule.
As uncertainty lingers, landlords and property professionals are watching closely to see how upcoming policy decisions might affect their costs — and the wider rental market — in the months ahead.
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