The dispute revolves around the Warm Homes Plan, which offers grants for heat pumps and aims to reduce energy bills—particularly for renters and vulnerable households.
Although the Warm Homes Plan was scheduled to launch this month, a government minister has confirmed the rollout will now occur “before the end of the year,” without providing a firm date. Industry leaders warn that the delay is stalling billions of pounds in potential investment.
Meanwhile, concerns are mounting that a higher cost cap could drive landlords out of the rental market.
The Times says that there is a fallout around the Warm Homes Plan which “relates to new rules protecting tenants by making landlords pay for energy efficiency upgrades at the properties they let.”
It also says: “officials are arguing over what the spending cap should be for landlords, which was originally set at £15,000 per home upgrade.”
Energy Secretary Ed Miliband has announced plans requiring all privately rented homes to meet EPC C standards by 2030, with new tenancies expected to comply by 2028.
An industry group has raised concerns that the proposed £15,000 spending threshold—required before landlords can apply for an exemption—may lead to unintended consequences, including landlords exiting the sector.
A spokesperson for an industry association states: “While we fully support the drive to improve energy efficiency in rental homes, the introduction of a £15,000 cost cap raises serious concerns around affordability and unintended consequences for both landlords and tenants. Many landlords are already operating on tight margins, and sudden, high-cost expectations, particularly in older or harder to retrofit properties, could lead to homes being withdrawn from the market altogether.
“It’s vital that any Minimum Energy Efficiency requirements are introduced with a realistic implementation timeline and that the cost cap reflects what’s genuinely achievable across the diversity of the rental sector. Support schemes, tax incentives, and clearer guidance must accompany any reform to avoid a cliff-edge that penalises landlords doing their best to comply.
“We urge policymakers to work with the industry and take a balanced, phased approach that supports energy efficiency without compromising the availability of homes in the private rented sector.”
The Treasury and the Department for Energy Security and Net Zero have dismissed reports of internal disputes, stating they are “untrue” and the Department for Energy Security and Net Zero spokesman told The Times: “This is categorically untrue.
“Our comprehensive Warm Homes Plan will make homes cheaper and cleaner to run, cutting families energy bills for good.”