Thousands of landlords could face significant disruption after the National Audit Office confirmed that nearly all external wall insulation installed under the government’s ECO4 scheme requires remedial work. With the programme due to close next spring and replacement plans delayed, landlords are being urged to stay alert to tenant correspondence and prepare for potential access requests.
Repair notifications are expected as the Audit Office found that 98% of ECO4 installations failed quality checks, raising risks of damp, mould, and poor energy efficiency. Yet by mid-September, only 2,900 homes had been fully repaired, highlighting the scale of the backlog.
Landlords whose properties were fitted under ECO4 or the Great British Insulation Scheme (GBIS) should expect letters from Ofgem if remediation is needed. A landlord group is advising landlords to brief tenants to flag any incoming letters immediately, as notifications will be sent to the property address rather than the owner.
Uncertainty over repairs as ECO Scheme winds down as although remedial works are expected to be carried out at no cost, the government has yet to confirm when they will take place. This lack of clarity leaves landlords facing uncertainty over tenant access, compliance, and maintenance obligations.
For those already dealing with damp or mould complaints, the delay risks intensifying pressures on landlord–tenant relationships and heightening legal exposure under the Homes (Fitness for Human Habitation) Act.
The Autumn Budget confirmed that the ECO programme will close in March 2026, with the government promising its replacement under the Warm Homes Plan. However, ministers have now conceded that the scheme—originally due to launch earlier—will not begin until “before the end of the year,” leaving a gap between closure and rollout.
Property professionals have voiced concern that the transition gap could destabilise the sector. They warn the government’s stop–start approach risks creating policy whiplash, eroding contractor capacity, and slowing momentum on energy efficiency upgrades.
A leading retrofit consultancy spokesperson has warned that “yanking £1.3 billion in funding is chaotic and has created a cliff edge.” She cautioned that the sudden change could put 10,000 jobs at risk, particularly among trades and SMEs delivering retrofit projects.
Her comments echo wider concerns across the housing sector, where investors, surveyors, and contractors have spent the past decade building capacity. With funding withdrawn and no clear replacement policy in place, many fear a vacuum that could undermine progress and destabilise the retrofit market
Guidance for landlords managing Insulation failures and landlords with affected properties are being urged to take proactive steps:
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Inform tenants that letters may arrive regarding remedial works
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Arrange timely access for inspections
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Keep detailed records of any damp, mould, or insulation-related problems
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Verify whether repairs are covered by guarantees, particularly if the original installer has ceased trading
Those landlords already contending with rising mortgage costs and stricter compliance demands, the latest developments risk adding yet another layer of administrative burden. However, with upcoming regulation expected to place greater weight on energy efficiency and insulation standards, addressing problems now could prove a strategic move—helping to mitigate future liabilities and prevent more costly interventions later.