Putting renters at the heart of the Warm Homes Plan
Comment by Francesca Davey, Graduate Energy Analyst, Energy Systems Catapult.
Everyone understands the importance of a warm, healthy home that is affordable to heat – but how we get there is a source of heated debate. The government’s continued promotion of its Warm Homes Plan makes it clear that home energy upgrades are firmly on its agenda, and last week’s Spending Review confirmed a budget of £13.2 billion over the Parliament, but details of how it will be allocated aren’t expected to be published until October. Used well, this funding could transform cold, inefficient homes across the UK.
One area that the plan needs to address is the private rented sector. It lags behind other housing tenures in energy efficiency, leaving tenants with some of the worst living conditions. Landlords typically don’t benefit directly from improvements, so they can be reluctant to invest.
New Minimum Energy Efficiency Standards (MEES) will require privately rented homes to reach Energy Performance Certificate (EPC) C by 2030. Yet our research on how to improve energy performance in this sector found that regulation alone won’t guarantee better conditions for tenants. Our recommendations set out how the Warm Homes Plan can accelerate progress towards warm, low‑carbon rented homes and grow the market for innovative products or services tailored to the sector.
Provide clarity to landlords through reforming EPCs and MEES in line with outcome‑based metrics.
Uncertainty about the changes required disincentivises landlords from acting. MEES should use reformed EPC metrics aligned with the policy goals, accounting for the necessity for low‑carbon heating adoption now and into the future.
Help landlords deliver good‑quality retrofits by facilitating place‑based one‑stop shops consistently across the UK.
Undertaking retrofit work is often complex, especially for landlords managing multiple properties. One‑stop shops can simplify the process by offering end‑to‑end services. The Energy Security and Net Zero Committee recently recognised the value one‑stop shops can bring, but there needs to be a clear signal of support from the government. By endorsing one‑stop shops in the Warm Homes Plan, it could encourage the growth of local models and better‑distributed access across England and Wales.
Help landlords finance retrofits through a mix of financial offerings tailored to the specific circumstances and needs of landlords.
High upfront cost is a key barrier to retrofit, especially for landlords in lower‑property‑value areas where the cost to meet MEES may be a greater proportion of the house value. Without support, there is a risk that a wave of landlords leave the sector, resulting in tenants struggling to find housing. The Scottish Government offers 0 % loans to landlords with five or fewer properties, and a similar offer through the Warm Homes Plan funding could ensure tenants have access to high‑quality homes.
Ensure compliance through better use of data, which would ease the time‑consuming and resource‑intensive task of identifying non‑compliant landlords and their properties.
We have previously advocated for a digital building passport, which would bring together all the relevant energy‑performance data in a single location and be updated as improvements are registered. Together with a new landlord database, this could enable local authorities to identify and target rental properties that need improvements.
As the government draws up its Warm Homes Plan, these measures should be prioritised alongside the updated MEES regulations to ensure that it delivers real benefits for renters and landlords.
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