Welsh Budget’s Energy Efficiency Funding Excludes Private Landlords

The Welsh Government has finalised its Budget for 2026–27, confirming a £2 million investment in the Green Homes Wales Scheme aimed at improving the energy efficiency of housing stock. However, this scheme notably excludes private landlords, a point strongly criticised by Propertymark, the professional body representing property agents and landlords.

Propertymark highlights that while homeowners will receive support to cover upfront costs for clean heating upgrades, private landlords are left without similar financial assistance. This omission could hinder landlords’ ability to make necessary energy efficiency improvements to their properties.

Implications for Landlords and Rental Supply

Timothy Douglas, head of policy and campaigns at Propertymark, emphasised the missed opportunity within the Welsh Budget to extend support to the private rented sector. He stated: “Without this additional backing, many landlords may continue to struggle to finance necessary energy efficiency improvements, potentially placing further pressure on rental supply.”

The lack of dedicated funding for landlords could have wider implications for the availability and quality of rental properties in Wales. Energy efficiency upgrades are increasingly important due to regulatory requirements and tenant expectations, and without financial support, some landlords may find it challenging to comply.

Land Transaction Tax Remains Unchanged

The Budget also confirmed no changes to the Land Transaction Tax (LTT), which Propertymark views positively in the short term. However, Timothy Douglas warned that without future reforms to better differentiate between short-term and long-term rental investments, the private rented sector may face ongoing investment constraints.

He noted: “There remains a risk that investment in the private rented sector will continue to be constrained, reducing housing supply and increasing pressure on homelessness services.” This highlights the need for policy adjustments to encourage sustained investment in rental properties.

What This Means for UK Landlords in Wales

For landlords operating in Wales, the current Budget signals a continued challenge in accessing financial support for energy efficiency improvements. While homeowners benefit from the Green Homes Wales Scheme, landlords must seek alternative means to fund upgrades, which could affect their ability to maintain properties to required standards.

The absence of tailored support may also influence landlords’ decisions regarding property investment and maintenance, potentially impacting the overall rental market and availability of quality housing in Wales.

Looking Ahead

Propertymark’s response to the Welsh Budget underscores the importance of inclusive policies that address the needs of all housing providers. As energy efficiency remains a priority in the UK’s environmental agenda, ensuring that private landlords have access to suitable financial support will be critical to meeting future housing standards and sustaining rental supply.

Suggested internal link anchors
– Welsh Budget 2026–27
– Green Homes Wales Scheme
– energy efficiency improvements
– private rented sector support
– Land Transaction Tax
– rental supply challenges
– landlord financial assistance
– clean heating upgrades
– property investment in Wales
– housing standards compliance

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/