Families could see lower energy bills under a £15 billion programme to upgrade millions of homes, though property bodies have raised concerns about the impact on landlords.
Millions of households are expected to benefit from lower energy bills under the government’s £15 billion Warm Homes Plan, which ministers have described as the largest public investment in home upgrades in British history.
The programme aims to improve energy efficiency in up to five million homes by 2030 through measures such as insulation, solar panels, batteries and heat pumps.
The government says the plan could lift as many as one million families out of fuel poverty while reducing long-term energy costs.
The announcement builds on measures set out at the Budget, including an average £150 reduction in energy bills from April. Around six million households will also receive the £150 Warm Home Discount, creating a combined £300 package of support for eligible families.
Ministers argue that action is overdue, pointing to a collapse in insulation installations of more than 90% between 2010 and 2024. This decline, they say, has left millions of households exposed during recent energy price shocks.
The Warm Homes Plan is structured around three main elements. Low-income households will be offered fully funded upgrade packages supported by £5 billion of public investment, potentially covering the full cost of insulation, solar panels or batteries.
In the social housing sector, upgrades may be delivered on a street-by-street basis to improve entire neighbourhoods at once.
A universal offer will give homeowners access to government-backed low and zero-interest loans for technologies such as solar panels, batteries and heat pumps, alongside a £7,500 grant for heat pumps.
SOLAR REQUIRED
New homes will also be required to include solar panels as standard under the Future Homes Standard, which is due to be introduced in early 2026.
Additional protections are planned for renters, with updated rules requiring landlords to improve energy efficiency over time. The government estimates that these measures could lift around half a million renting households out of fuel poverty by the end of the decade.
Prime Minister Keir Starmer said a warm home “should be a basic guarantee for every family”, while energy secretary Ed Miliband described the plan as a national effort to tackle fuel poverty and make energy more affordable.
LANDLORD CONCERNS
Propertymark has warned that, while the ambition to improve energy efficiency is acknowledged, the proposals raise serious concerns for landlords and agents across both residential and commercial property.
“the proposals as they stand are deeply concerning for landlords and agents across both the residential and commercial sectors”
Timothy Douglas, head of policy and campaigns at Propertymark, said: “While the ambition of the Warm Homes Plan to improve energy efficiency and tackle fuel poverty is acknowledged, the proposals as they stand are deeply concerning for landlords and agents across both the residential and commercial sectors.
“In the private rented sector, landlords are being asked to deliver, in many cases, substantial and costly upgrades to reach EPC C by 2030, yet this is being imposed without clear, long-term funding commitments, realistic delivery timescales, or sufficient flexibility for older, complex, and hard-to-treat properties.
“A phased and realistic approach would allow landlords to maintain the Decent Homes Standard, manage costs effectively, and contribute meaningfully to the UK government’s ambition to achieve net zero by 2050.
“Crucially, there remains no clarity on Minimum Energy Efficiency Standards for non-domestic property, despite expectations that commercial landlords will be required to meet EPC B by 2030.
“The absence of detail on interim targets, exemptions, enforcement, and financial support makes it impossible for landlords to plan responsibly or invest with confidence.
“Propertymark has consistently warned that a one-size-fits-all approach to energy efficiency will not work. Without certainty, genuine flexibility, and practical financial support, there is a serious risk that both residential and commercial landlords will withdraw properties from the market.
“This would reduce supply, drive up costs for tenants and businesses, and ultimately undermine the government’s stated objectives on affordability, energy efficiency, and economic growth.”
