The Governments Warm Homes Plan has recently confirmed that properties in the private rented sector are to have an EPC of at least a C rating by 2030 (unless there is a valid exemption).
The government’s Warm Homes Plan is part of a wider push to improve energy efficiency across the UK’s housing stock — and you as landlords have a key role to play and we are here to help and support.
With rising energy costs and tighter environmental targets, the government’s plan is designed to help make rental homes warmer, cheaper to run, and more energy-efficient, all of which here at Lawton & Dawe, we are completely backing.
There are two routes in which we can look to help you comply – the Heat route, or the Smart route.
The Heat route focuses on how the home produces heat, not just on how much energy it uses. This route will approach home upgrades which provide cleaner, more efficient heat delivery, for example, heat pumps or upgrading heating systems. This can be a good route for period properties or converted buildings where insulation improvements are harder to carry out.
The Smart route focuses on how well the property uses energy intelligently, not just how it is heated. This would include things like smart thermostats, adaptive controls, and solar or battery storage. This route recognises efforts towards energy use behaviour and smart technology assisting in saving energy. This route is good for properties who would struggle with updating heating systems.
Under the government plan, landlords will be required to improve the energy efficiency of their rental properties — but there’s a financial safety net in place – a £10,000 cost cap.
It means landlords are not expected to spend more than £10,000 per property to meet the required energy efficiency standard (such as EPC C), including VAT.
In addition, landlords don’t have to fund energy-efficiency upgrades alone. Under the Warm Homes Plan, there is going to be support which includes:
- Grant funding via local councils to help pay for insulation, heating upgrades and low-carbon technology
- Boiler Upgrade Scheme grants to reduce the cost of installing heat pumps
- Low- or zero-interest government-backed loans to spread the cost of improvements
We are also increasingly asked about heat pumps and long-term running costs, particularly here in Sussex where many landlords and homeowners are thinking ahead to more efficient heating. In Sussex, installing an air-source heat pump typically costs around £7,000 – £13,500 before grants, and after the UK Government’s £7,500 Boiler Upgrade Scheme grant many properties see net costs closer to £3,500 – £6,000.
Ground-source heat pumps tend to be higher-cost to install, usually £10,000 – £25,000+ even after support, depending on groundworks and property size.
In terms of running costs, heat pumps can be more efficient than traditional gas boilers. Many homes see annual energy savings of £250 – £350 or more on heating bills, depending on insulation levels and energy tariffs, which we appreciate can be changeable. Using these figures, a typical air-source heat pump in Sussex could reasonably expect to recoup the extra investment within roughly 5–10 years, with ongoing savings thereafter. That said, payback times vary based on your property’s insulation, current energy costs, and how the system is used.
This makes careful planning and good advice essential when considering heat pumps as part of your long-term property strategy. We work alongside local, knowledgeable plumbers who can provide more accurate information on the pros and cons and if this change would be beneficial to your individual property investment.
A more energy efficient home benefits all parties. Tenants enjoy lower energy bills while you as landlords are investing in properties that are better prepared for potential future EPC requirements.
In short: the Warm Homes Plan is an opportunity for you as landlords to future-proof their portfolios, meet rising standards, and provide better homes — with support to help cover the cost.
As ever, at Lawton & Dawe we will help support you to remain compliant long term with your rental investments. We will commit to doing this through advice and updates on regulation, plus practical help to ascertain energy upgrades we can implement to maximise the efficiency of your property, not only for you, but for your valued tenants too.
