By On 21st January 2026, the Labour Government announced the highly anticipated Warm Homes Plan, which is set to be the biggest energy upgrade plan in British history, with a key message to help families save long-term on energy bills and lift millions out of fuel poverty.
The Warm Homes Plan aims to deliver £15 billion of public investment, roll out upgrades to up to 5 million homes that could save households hundreds on energy bills, and help lift a million families out of fuel poverty by 2030. A large segment of the plan is focused on new protections for renters, a welcome and positive move for tenants and a new set of expectations and responsibilities from landlords to improve the energy efficiency standard and performance of their properties within the private rented sector.
The ambitious plan seems to be a progressive step for the government in a broader aim of improving energy standards and home safety within the private rented sector. It signals to lay the foundations for the Renters’ Rights Act expansion of Awaabs Law and the Decent Homes Standard set for 2035 – 2037 for the private rented sector (PRS).
Here’s an outline of how the Warm Homes Plan will impact landlords and privately rented homes:
- Landlords will need to upgrade their properties to meet EPC Band C across two metrics by October 2030, unless their property has a valid exemption.
- Alongside this, there are currently ongoing consultations led by the government on EPC metric changes and how this is calculated.
- Spending caps announced on energy improvements increased from £3500 to £10,000 per unit and are capped at the maximum amount.
- Introduction of a new low-value property exemption, which will lower the spending cap where £10,000 would represent 10% or more of a property’s value, i.e., for units valued at £100,000 or less.
- Landlords will be able to benefit from some grants and financing, such as the Boiler Upgrade Scheme (BUS).
- Eligibility of low-interest energy loans by landlords is still to be assessed, but the government is calling for evidence on where loans can make the greatest impact across all housing tenures.
- New Build standards will be published in the Future Homes and Buildings Standards consultation response (expected in Q1 of 2026), which will outline new standards and regulations required for new builds from 2026 with solar panels expected to be mandatory.
The Warm Homes Plan has been welcomed as a positive step for tenants, but the UK property industry has raised concerns about the practicality and funding of upgrades for landlords and the private rented sector, particularly for older housing stock. There are also fears that improvement costs could be passed on to renters. In response, Conservative MP Paul Holmes questioned whether the government had assessed the impact of new energy efficiency requirements on market rents. The government confirmed it has consulted on raising minimum standards in the private rented sector, including proposals for homes to reach EPC C by 2030, and has engaged with both landlord and tenant groups. Ministers have stated that the “proposed changes should not require landlords to increase rents”.
Let’s turn to the experts for their commentary on the Warm Homes Plan announcement, what this means for landlords and the private rented sector:
Simon Andrews, Managing Director from Retrofit, comments:
“The Warm Homes Plan gives landlords clearer direction than we’ve had before. Moving the private rented sector towards EPC Band C by 2030 will feel like a big step for some, but it’s backed by sensible safeguards — a £10,000 spending cap, ongoing exemptions, and flexibility in how landlords choose to comply. Allowing properties to meet either a fabric or heating system standard is particularly positive, as it reflects the reality that rental homes are varied and need different solutions.
From our perspective at Retrofit West, what’s most important now is timing. Those who start early can plan upgrades appropriately, spread the cost, and avoid the inevitable rush and higher prices that are likely closer to 2030. Starting with a clear assessment helps landlords understand what’s realistic for their property and stay within the spending cap. It also guides improvements that reduce future repair issues, meet the regulations, and keep tenants happy.”
Stuart Hesk, Director of Heating at Hewer Facilities Management Ltd, comments:
“While the ambition is welcome, the industry is still waiting for the finer operational details. Clarity around funding mechanisms, eligibility and delivery timelines will be critical if contractors are to mobilise at the scale required. The scrapping of EC04 created understandable uncertainty, so confidence will depend on how clearly this programme is defined and sustained. The target of upgrading five million homes is undoubtedly ambitious, but having a clear goal is important.
We believe it is achievable provided the programme is maintained across parliamentary terms and backed by long term policy stability. The continued support of the BUS grant is particularly reassuring, as it gives businesses just like ours the confidence to invest in skills, training, and new jobs to support the low carbon transition.
Overall, this plan signals that the Government is validating its commitment to decarbonisation, and with the right detail and long-term backing it could represent a significant opportunity for households, social housing providers, and the wider industry.”
Vann Vogstad, Founder and CEO of COHO,
“The Warm Homes Plan is well-intentioned, but it risks overlooking the shared housing and HMO sector, which is a significant part of the UK housing system. While landlords are mentioned within the Warm Homes Plan, the practical focus and financial support still appears to be weighted towards owner-occupiers.
Over two million house-sharing tenants live in homes where energy bills are typically included, meaning landlords already have a direct financial incentive to manage energy use efficiently. If carbon reduction is the aim, along with cutting energy bills, policy needs to ensure that landlords are not only referenced but meaningfully incentivised, as investment decisions in the rental and HMO market are driven by financial viability, not ideology. Without that alignment, uptake will be uneven and the overall impact of the policy will be reduced.
Offering low-interest loans is not enough. Support mechanisms need to bring meaningfully change to the economics otherwise uptake will be slower and patchier in the rental and HMO sector, limiting the policy’s overall effectiveness and putting additional upward pressure on rents. Latest ONS private rent figures out today show that average UK monthly private rents increased by 4.0%, to £1,368, in the 12 months to December 2025.
The industry also needs greater clarity from the Government around the “new rules to ensure landlords invest in upgrades to cut bills for renters and social tenants”, as mentioned in the Warm Homes Plan, if we’re to see change.
Encouraging landlords to install greener technology absolutely makes sense, but it works best when policy recognises how shared housing actually operates and supports investment in a way that reflects those commercial realities.”
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