Government’s new direction for energy-efficient homes: What you need to know

A new package of consultations, regulations and funding proposals has been published by the Government under its Warm Homes Plan, sets out a clearer direction for how homes will be built, upgraded and financed in the coming years. Mia Rotaru, Public Affairs Officer at the NRLA, explores what these measures mean for landlords.  

Eagerly anticipated by energy assessors, builders, and retrofit professionals the new reforms, announced this week will centre on the the Future Homes Standard (FHS).  

The standard aims to ensure new homes are effectively “net zero ready” and, in practical terms involves a fundamental shift in how new-build homes will be heated.   

All new homes will be required to meet stricter performance standards, including the adoption of low-carbon technologies. This means: 

• Homes will transition from gas boilers to low-carbon heating, likely using heat pumps and solar panels.  

• The performance metrics for new homes will remain the same as current standards: primary energy, carbon emissions, and fabric efficiency.  

• The Government has confirmed that SAP 10.3 (the existing EPC measurement) will be used initially, with the Home Energy Model expected to be introduced later.  

The new regulations will come into force on 24 March next year, followed by a twelve-month transitional period.  

Homes already under construction can continue under the standards in place when work began, but existing long-term transitional arrangements will be phased out.   

Warm Homes Fund

 In parallel, the Government has launched a Call for Evidence on the new Warm Homes Fund, supported by £5 billion in funding. Instead of relying solely on grants, the focus is on using public finance to enable a broader range of investment, which might involve:  

• Loan products,   

• Equity investments.  

• Support technologies like solar panels, batteries, heat pumps, and heat networks.  

What does this mean for me?

 For landlords, the importance of these developments goes beyond new builds. This additional detail suggests, for the first time, how the Warm Homes Fund will work in practice when it comes to funding for energy efficiency improvements across the board – including upgrades for PRS homes.   

The Call for Evidence is open to everyone, offering an opportunity for landlords to help shape how this funding is structured and implemented. You can send your response here by 1st June.

Plug-in solar panels

Finally, the Government also announced the introduction of 'plug-in' solar panels, affordable units that can be easily installed on balconies or in outdoor areas without complicated setup.   

The Government said that the electricity produced can be used directly via a standard mains socket, reducing dependence on grid power and helping lower energy bills without any initial installation costs.  

However, the practicality of these remains unclear, as do the broader impacts on responsibilities shared by landlords and tenants.  

Looking ahead

 While the direction of travel set by the Government is clear, there remains a significant gap between ambition and delivery.  

We are arguing it is critical that these proposals are considered alongside wider regulatory changes, particularly reforms to Minimum Energy Efficiency Standards (MEES) and  Energy Performance Certificate (EPC) requirements.  

Without a clear, joined-up approach, there is a real risk that landlords will face overlapping obligations without the tools needed to meet them.  

More information

• For more information about the proposed changes and the latest government announcements on the Warm Homes plan, the EPC, and MEES, click here.     

• The NRLA’s award-winning Training Academy runs an energy efficiency course giving you all you need to know on energy efficiency and how to access funding. Click here for more information and to book.     

• NRLA partner Domna is a one stop shop, when it comes to helping you improve your properties Energy Performance Certificate (EPC) ratings. For more information click here.      

• Part of the NRLA family, Safe2 is a one-stop-shop for all things compliance, allowing you to organise inspections and order safety certificates, including EPCs, at the click of a button. For more information click here.