The government has put private landlords firmly in the frame with the launch of its Warm Homes Plan, signalling tighter expectations around energy efficiency in rented homes. Announced this week by Energy Secretary Ed Miliband, the plan promises billions in public investment but leaves landlords asking who pays, when, and on what terms.
New rental energy efficiency rules for landlords
At the heart of the plan is a clear political message: landlords, private and social, will be expected to invest more to ensure homes are “safe, warm and affordable”. Ministers say updated protections for renters, alongside landlord upgrades phased in “fairly over several years”, could lift around 500,000 families out of fuel poverty by the end of the decade.
What remains unclear is how prescriptive the new rules will be. The policy document references a wide menu of potential upgrades – from insulation and draught proofing through to solar PV, batteries and air or ground source heat pumps – but stops short of setting minimum standards or timelines. There is also no confirmation yet on whether tenants will be able to trigger improvement requests themselves, a detail that matters greatly for landlords managing costs and access.
Grants, loans and the real cost to buy-to-let
Financial support is a central plank, but detail is thin. A £7,500 universal grant for heat pumps is confirmed, including a first-ever offer for air-to-air systems that can cool homes in summer. Beyond that, ministers say more will be set out “later this year” on low-interest or zero-interest loans following talks with lenders and consumer groups.
For many landlords, loans alone may not shift behaviour. Vann Vogstad, founder and CEO of COHO, warns the shared housing and HMO sector risks being overlooked. Over two million house-sharing tenants live in properties where bills are included, meaning landlords already carry energy costs.
“Investment decisions in the rental and HMO market are driven by financial viability, not ideology,” he says. “Offering low-interest loans is not enough. Without meaningful incentives, uptake will be uneven and could put further upward pressure on rents.”
That warning lands against a backdrop of rising rents. According to Office for National Statistics data released this week, average UK private rents rose 4.0% in the year to December 2025, taking the typical monthly rent to £1,368 – around £55 more than a year earlier.
Warm Homes Plan impact on rents and housing supply
From an industry perspective, the ambition is welcomed but the execution is key. Stuart Hesk, director of heating at Hewer Facilities Management Ltd, says clarity on funding and delivery will determine whether the target of upgrading five million homes is realistic.
“The scrapping of ECO4 created understandable uncertainty,” he notes. “Confidence will depend on how clearly this programme is defined and sustained. Continued support for the Boiler Upgrade Scheme is reassuring, as it allows firms to invest in skills and jobs.”
Without clear grant access and workable timescales, mandatory upgrades risk squeezing margins already hit by higher mortgage costs and tax changes. In a supply-constrained rental market, those costs rarely disappear – they feed through into rents or decisions to exit.
Editor’s view
Improving the energy performance of Britain’s ageing housing stock is hard to argue with. Warmer homes and lower bills benefit tenants and landlords alike over the long term. But policy only works when the sums add up. If the Warm Homes Plan is to avoid becoming another well-meaning burden on the private rented sector, ministers will need to move quickly from rhetoric to workable detail – and recognise that landlords invest when the incentives are credible, not just compulsory.
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance
Published: 21 January 2026
Sources: UK government Warm Homes Plan statement; Office for National Statistics private rental data; comments from COHO and Hewer Facilities Management Ltd
Related reading: Call for faster EPC upgrades as draughty rentals push up energy bills
