The UK government has launched a consultation on the Warm Homes Fund, seeking input from landlords and industry bodies on funding options to support energy-efficiency improvements in the private rented sector. This initiative aims to accelerate the adoption of low-carbon technologies and help properties meet the government’s EPC C target by 2030.

Government consultation on the Warm Homes Fund

The Warm Homes Fund consultation invites evidence on how government finance can better support the rollout of domestic solar panels, battery storage, clean heating systems, and other energy-efficiency measures. This follows the government’s announcement that all private rented properties must achieve at least an EPC C rating by 2030, signalling a significant policy push towards greener homes.

With an initial investment of £5 million, the Warm Homes Fund intends to address barriers such as upfront costs that often deter landlords from making necessary energy upgrades. The fund’s focus is on enabling the installation of low-carbon technologies that reduce carbon emissions and improve energy efficiency.

Challenges faced by landlords

The National Residential Landlords Association (NRLA) has previously cautioned that the government’s assumption of landlords as a homogenous, affluent group capable of absorbing the costs of major upgrades is flawed. Ben Beadle, NRLA chief executive, emphasised the need for a robust support plan, stating: “We want all rental properties to be as energy efficient as possible. However, this isn’t going to happen without a serious plan to support the investments needed.”

He added, “Relying on the misguided belief that every landlord has limitless reserves to fall back on is not only wrong but will not get tenants any closer to seeing their homes made energy efficient.” This highlights the financial pressures many landlords face in meeting new regulatory standards.

Access to grants and loans

The Warm Homes Fund call for evidence reveals that landlords are keen to access grants to fund energy-efficiency improvements. Existing support schemes include the Boiler Upgrade Scheme and the Warm Homes: Local Grant, which provide funding for eligible private rented homes to install relevant measures.

However, landlords have also expressed interest in loan options, citing several reasons why loans might sometimes be preferable to grants. One issue is low awareness or understanding of available grants. Another is that many grants are tenant-eligibility based, whereas landlords often prefer to carry out upgrades between tenancies when properties are vacant, making them ineligible for some grants.

The government will consider evidence from this consultation alongside ongoing stakeholder engagement to shape future funding mechanisms.

What this means for landlords

Landlords should prepare for increased regulatory requirements to improve the energy efficiency of their properties, with the EPC C target set for 2030. While the Warm Homes Fund offers some financial support, the consultation indicates that landlords may need to navigate a combination of grants and loans to fund improvements effectively.

Engagement in the consultation process could help ensure that funding schemes are designed with landlords’ practical needs in mind, particularly concerning timing and eligibility criteria. This may ultimately ease the financial burden and facilitate compliance with upcoming energy performance standards.

Source: Based on reporting from Property118

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