Energy efficiency: Will the new Government change course?
With a new energy secretary named last week, landlords will be watching closely to see whether the Government's ambitious energy efficiency plans are likely to change. Our Policy and Public Affairs Officer, Mia Rotaru looks at what landlords can expect from this new chapter.
One of the first major decisions facing the new Secretary of State for the Department for Energy Security and Net Zero (DESNZ), Miatta Fahnbulleh MP will be the shape of the next phase of the Government's energy efficiency agenda - including the future of the Warm Homes Fund and the proposed Minimum Energy Efficiency Standards (MEES) reforms.
What is the Warm Homes Fund?
The Warm Homes Fund is a key part of the Government's wider £15 billion Warm Homes Plan. The plan aims to lower energy bills, improve the energy efficiency of homes and support the UK's transition towards net zero.
The fund is designed to encourage investment in energy-efficiency improvements through a combination of consumer finance, low-interest loans, and broader investment in home upgrades.
Unlike previous schemes, much of the funding is expected to be delivered through repayable finance rather than direct grants.
Alongside this, the fund will provide support for low-income households and help enable improvements such as solar panels, battery storage and heat pumps.
It is expected to play an important role in helping households improve their homes' energy performance over the coming years.
Why does this matter for landlords?
There is broad agreement across the housing and finance sectors that landlords will need meaningful financial support if the Government expects privately rented homes to meet higher energy efficiency standards.
During the consultation on proposed MEES reforms, lenders, landlords and industry organisations highlighted that access to grants and affordable finance will be essential if landlords are to meet an EPC C standard by 2030.
This is particularly important as the Energy Company Obligation (ECO4) scheme is due to end this year. Many landlords will need support to improve older, harder-to-retrofit properties, where the upfront costs of energy-efficiency improvements can be significant.
Where have the concerns come from?
Recent speculation about the future of the Warm Homes Fund has grown amid wider Government discussions around spending priorities and pressure on public finances.
The Government's Call for Evidence on the future design of the fund closed last month, and ministers are expected to publish their response later this year. While some have questioned whether funding levels or priorities could change, the consultation response will ultimately determine how support is delivered, rather than whether energy efficiency remains a government priority.
Should landlords expect the Government's plans to change?
While there has been a change in leadership at the Department for Energy Security and Net Zero, Miatta Fahnbulleh MP is not new to this area.
Before becoming Secretary of State, Fahnbulleh served as Parliamentary Under-Secretary of State at DESNZ, where she was closely involved in the Government's energy efficiency agenda, including work on the consultation to raise Minimum Energy Efficiency Standards (MEES) for privately rented homes.
Having already worked on these policies, Miatta Fahnbulleh is aware of the practical challenges of delivering energy-efficiency improvements across the housing sector.
For now, landlords should treat speculation with caution.
The Government's response to the Warm Homes Fund consultation will provide greater clarity on the future support available, so keep an eye on our news site and social media channels for all the latest developments.
