Thousands of landlords may soon face disruption after the National Audit Office confirmed that almost all external wall insulation installed under the government’s ECO4 scheme requires repair. With the scheme now set to end next spring and replacement plans delayed, landlords are being advised to monitor tenant correspondence and prepare for access requests and possible remedial works.
Landlords told to watch for ECO repair notifications
According to the National Audit Office, 98% of homes fitted under ECO4 failed quality inspections, with risks including damp, mould and poor energy efficiency. Despite the scale, only 2,900 properties had been fully repaired by mid-September.
Landlords whose properties received insulation under ECO4 or the Great British Insulation Scheme (GBIS) should expect letters from Ofgem if remediation is required. The National Residential Landlords Association (NRLA) is urging landlords to brief tenants to flag any incoming letters immediately, given the correspondence will be sent to the property rather than the owner.
While repairs are expected to be completed free of charge, the government has not confirmed when the work will take place – creating uncertainty for landlords navigating tenant access, compliance and maintenance obligations. For those already managing damp or mould complaints, this delay could place extra strain on relationships and legal duties under the Homes (Fitness for Human Habitation) Act.
Impact of scheme closure and policy transition delays
The Autumn Budget confirmed the ECO programme will be scrapped in March 2026, to be replaced by the government’s Warm Homes Plan. Yet despite the original launch date having passed, ministers now admit the new scheme will not begin until “before the end of the year.”
The transition gap has sparked criticism, with property professionals arguing the government risks creating policy whiplash, contractor loss and stalled improvements.
Anna Moore, CEO of retrofit consultancy Domna, warned that “yanking £1.3 billion in funding is chaotic and has created a cliff edge.” She also noted the change could threaten 10,000 jobs, particularly among trades and SMEs that deliver retrofit work.
Her view reflects a broader concern across the housing sector: investors, surveyors and contractors have built capacity over a decade, and a policy vacuum threatens to unravel that progress. A similar pattern occurred after changes to feed-in tariffs for solar installations in 2016 – demand evaporated and supply chains collapsed, taking years to recover.
What landlords need to prepare for next
Landlords with affected properties are being advised to:
- Ensure tenants are aware letters may arrive
- Arrange prompt access for inspections
- Document any damp, mould or insulation-related issues
- Check whether work is covered by guarantees if the original installer has closed
With rents rising sharply in many regions – ONS data shows annual rental growth exceeding 9% in Manchester and 11% in Edinburgh earlier this year – tenant expectations around property condition and energy efficiency remain high.
For landlords already contending with rising mortgage costs and new compliance pressures, this latest development could feel like yet another administrative hurdle. But with future regulations likely to favour efficient, well-insulated homes, addressing issues now may prevent larger costs later.
Editor’s view
This episode is another example of unpredictable policymaking affecting property owners. Scrapping a national retrofit programme before its successor is operational leaves landlords and installers in limbo at exactly the moment the UK needs consistent energy policy. The irony is stark: the government wants warmer, greener homes – yet landlords are left managing defects and delays without a functioning replacement scheme. The question now is whether ministers will extend ECO to avoid a skills exodus and mounting repair backlog, or whether landlords will once again be expected to absorb the fallout.
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance
Published: 2 December 2025
Sources: NAO, NRLA, Ofgem, Domna, UK Government statements
Related reading: UK retrofit funding cut sparks concern for landlords
