Warm Homes Plan increases pressure on self-managing landlords

Published on

The government’s renewed focus on energy efficiency in the private rented sector is expected to place growing strain on landlords who manage their own properties, according to a brokerage founder.

Ian Macbeth, managing partner of Avocado Property, said the latest announcements on the Warm Homes Plan and forthcoming reform of Energy Performance Certificates underline a regulatory direction of travel that does not favour do-it-yourself landlords.

Last week, ministers set out further detail on the Warm Homes Plan, confirming that EPCs will be reformed from 2026. While key timelines and enforcement mechanisms are still to be clarified, the changes point to tighter expectations around energy standards in rented homes.

The Warm Homes Plan includes a £15 billion commitment to upgrade up to five million properties by 2030, with measures such as a £7,500 heat pump grant, incentives for solar panels and government-backed loans to support energy efficiency improvements.

Although the policy is framed around reducing household energy bills and tackling fuel poverty, ministers have made clear that landlords will be expected to play a central role in delivering warmer and more efficient rental homes.

Alongside this, EPC reform is intended to modernise how energy performance is measured and reported, with consultations suggesting changes to calculations, presentation and how often certificates are updated.

These proposals sit within wider ambitions to raise minimum standards across the private rented sector, following several years of debate about tougher energy efficiency requirements for rental property.

EVIDENCE AND PROCESS

Macbeth said the announcements show how energy compliance is becoming increasingly intertwined with wider tenancy regulation, particularly following the passage of the Renters’ Rights Act.

He said: “Energy efficiency reform doesn’t exist in isolation. When you combine EPC changes with the abolition of Section 21 and a possession regime that depends entirely on evidence and process, self-management becomes far more fragile.”

More than 23% of UK lets are now handled through DIY platforms such as OpenRent, but Macbeth said the regulatory environment is shifting firmly towards professionalisation.

He said: “For years, agents have been competing with DIY platforms on price. That was always a difficult battle. What’s changing now is that risk is moving decisively back into the conversation.”

Macbeth added that energy efficiency obligations are likely to expose the limitations of informal self-management.

He said: “Understanding EPC ratings, future benchmarks, improvement requirements and how all of that interacts with tenant rights is not a side project. It requires structured processes, accurate records and technical oversight throughout the tenancy.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Access FS appoints new training and competency manager

Access Financial Services has appointed Sue O’Brien as its new training and competency manager,...

Recognise Bank underlines Scotland lending appetite with Aberdeen student deal

Recognise Bank has completed a £1.96 million commercial property loan to support the refinance...

International buyers hold 203,000 homes

Almost 203,000 homes across England and Wales are owned by international homeowners, with London...

The Mortgage Works cuts buy-to-let rates for a second time in a week

The Mortgage Works will reduce rates by up to 0.20% across parts of its...

Clydesdale Bank trims selected residential and buy-to-let fixed rates

Clydesdale Bank has confirmed a series of rate reductions across parts of its residential...

Latest publication

Other news

Lenders that adapt to customer and broker needs will be the winners

For UK mortgage brokers, the choice of lender partner has never been more important. In...

Access FS appoints new training and competency manager

Access Financial Services has appointed Sue O’Brien as its new training and competency manager,...

Recognise Bank underlines Scotland lending appetite with Aberdeen student deal

Recognise Bank has completed a £1.96 million commercial property loan to support the refinance...