The government’s renewed focus on energy efficiency in the private rented sector is set to increase pressure on DIY landlords while creating new opportunities for professional letting agents.
Further detail published last week on the Warm Homes Plan confirms that Energy Performance Certificates will be reformed from 2026, signalling tighter expectations around energy standards in rented homes. Key timelines and enforcement mechanisms, however, have yet to be finalised.
The Warm Homes Plan includes a £15bn commitment to upgrade up to five million properties by 2030, supported by measures such as a £7,500 heat pump grant, incentives for solar panels and government-backed loans for energy efficiency improvements.
Ministers have made clear that landlords will be expected to play a central role in delivering warmer, more efficient rental homes.
RAISING MINIMUM STANDARDS
Alongside this, proposed EPC reform is intended to modernise how energy performance is measured and reported, with consultations pointing to changes in calculations, presentation and update frequency. These proposals sit within wider ambitions to raise minimum standards across the private rented sector.
Ian Macbeth (main picture), Co-founder and Managing Partner of Avocado Property, reckons that the announcements highlight how energy compliance is becoming increasingly intertwined with wider tenancy regulation following the passage of the Renters’ Rights Act.
He says: “Energy efficiency reform doesn’t exist in isolation. When you combine EPC changes with the abolition of Section 21 and a possession regime that depends entirely on evidence and process, self-management becomes far more fragile.”
DIY PLATFORMS
More than 23% of UK lets are now serviced through DIY platforms such as OpenRent, but Avocado argues that the regulatory direction of travel is firmly towards professionalisation.
“For years, agents have been competing with DIY platforms on price,” Macbeth says. “That was always a difficult battle. What’s changing now is that risk is moving decisively back into the conversation.”
He adds that energy efficiency obligations are likely to expose the limitations of casual self-management.
NOT A SIDE PROJECT
“Understanding EPC ratings, future benchmarks, improvement requirements and how all of that interacts with tenant rights is not a side project,” he says.
“It requires structured processes, accurate records and technical oversight throughout the tenancy.”
Macbeth says this presents an opportunity for letting agents to reposition full management services around risk management rather than transactional tasks.
“Agents who can demonstrate that compliance is built into their model, not bolted on, are in a strong position.
“The next 12 months are a chance for letting agents to reset how they present their value, particularly to landlords who have been managing properties themselves.”
With EPC reform expected to develop over the coming year and major elements of the Renters’ Rights Act due to come into force on 1 May, he adds that agents should use the remaining time to strengthen their own compliance and educate landlords on the changes ahead.
