Landlords say certainty matters more than concessions
The Government’s new Warm Homes Plan, unveiled on Wednesday, rowed back on several of Labour’s earlier proposals for improving the energy efficiency of rental stock in England.
Last year, the Energy Secretary floated a £15,000 spending cap per property for upgrades ranging from insulation and double glazing to solar panels. Under the final version of the plan, that maximum outlay has been cut to £10,000 – effectively reverting to the level originally proposed by the previous Conservative government.
At the same time, the deadline for landlords to bring properties up to an EPC rating of C has been pushed back by two years to 2030, giving investors more time to plan and phase works.
For many in the sector, the shift provides short‑term relief at a time when landlords are also grappling with the looming Renters’ Rights Bill and broader affordability pressures.
Hiten Ganatra, managing director at Visionary Finance, told Mortgage Introducer that the delay is likely to be welcomed by landlords who are already stretched by overlapping reforms.
“Any delay on this legislation is welcomed to give landlords much needed respite, especially as many are still trying to manage their portfolios and processes ahead of May for the Renters Rights Bill,” he said.
However, he warned that continual changes to the rulebook are undermining confidence among long‑term investors.
“Many landlords will already have made significant investments in improving their stock, I'd like to see some consistency, certainty and no more u‑turns, as property is a long term investment and so we need long-term certainty on legislation and rules that affect property investment,” Ganatra added.
NRLA backs ‘realistic’ approach
The National Residential Landlords Association has broadly welcomed the scaled‑back demands, arguing that the original plans were simply undeliverable in the current market.
Chris Norris of the NRLA told the Telegraph that many private landlords were facing unrealistic timelines, and feared they would either have to hike rents to fund upgrades or exit the market altogether, further constraining supply.
He described the lower cost cap as a more “reasonable” framework that should still allow landlords to work towards more sustainable homes while maintaining viable business models.
The final package also confirms that spending on energy efficiency works since October last year will count towards the cap, and that landlords can still access the Boiler Upgrade Scheme, which offers £7,500 grants for heat pump installations.
To address affordability at the lower end of the market, a low‑value property exemption will reduce the cap to 10% of the property’s value for homes worth under £100,000.
System overhaul – and new exemptions
Alongside the Warm Homes Plan, ministers have announced a fundamental reform of the EPC regime. From October 2026, the single EPC score will be replaced by four new metrics, with details currently out for consultation.
Transitional provisions will mean that properties achieving a C rating before October 2029 will be treated as compliant with the new rules until their existing EPC expires, even once the new metrics are in force.
However, renter groups warn that the decision to lower the maximum required spend and expand exemptions risks leaving some tenants in cold, inefficient homes. If a landlord has spent £10,000 but still cannot meet the EPC C standard, they will be able to register a 10‑year exemption and continue to let the property.
Holiday lets carved out entirely
In a further shift, Labour has dropped plans to require owners of holiday lets to reach EPC C at all. Earlier proposals had sparked alarm among self‑catering operators who feared six‑figure upgrade bills, particularly for older, heritage‑style properties.
Trade bodies argued that short‑term lets were not directly comparable to long‑term tenancies and that a one‑size‑fits‑all framework would push marginal businesses to the wall. The Government has now accepted that self‑catering stock is “fundamentally different” and should not be subject to identical standards.
For mortgage and specialist lenders exposed to the holiday let sector, the reversal removes a significant source of near‑term risk around capital expenditure and viability.
Calls grow for cross‑party stability
While the immediate tone from landlord bodies and brokers is relief, many stress that the bigger issue is the relentless pace – and reversals – of regulatory change in the rental market.
Martin Sims, distribution director at Molo Finance, told Mortgage Introducer that the ongoing adjustments to energy efficiency rules were sending mixed signals to investors.
“Frankly, the constant tinkering with energy-related guidance and rental property requirements is causing uncertainty for landlords,” he said.
“What we need is some consistency in cross-party thinking so that landlords feel confident to make the investments they need to maintain and improve rental properties.”
For lenders, that uncertainty feeds directly into product design, risk assessment and long‑term portfolio strategy. Shifting standards and timetables make it more difficult to model landlords’ capital needs, assess affordability where retrofit costs may be debt‑funded, and anticipate future regulatory headwinds that could affect asset values.
Labour defends ‘fair’ balance
Defending the revised approach, a Labour spokesperson said the Warm Homes Plan would still deliver “higher standards for the private rented sector” that cut bills and lift 415,000 households out of fuel poverty, while taking account of the realities facing landlords.
“These plans were promised by the last government and then abandoned. This Government is delivering them in a fair way that works for tenants and for landlords,” the spokesperson said.
For the mortgage industry, the latest announcement may ease short‑term pressure on landlords’ balance sheets, but it also underlines a deeper challenge: designing lending strategies, retrofit finance products and affordability models in a landscape where energy and housing policy remain in constant flux.
Brokers and lenders will now be watching closely for the outcome of the EPC consultation – and, perhaps more importantly, for signs that the era of last‑minute reversals and step‑changes in regulation is finally coming to an end.
