CLA win as government revises its home energy efficiency plans

Cost cap for landlords reduced and EPC timescale pushed back as energy department listens to CLA concerns
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The CLA has achieved a number of wins for landlord members after the government announced revisions to its home energy efficiency plans.

The Department for Energy Security and Net Zero (DESNZ) has launched its Warm Homes Plan aiming to upgrade the nation's homes, help cut energy bills and tackle fuel poverty. The government will also respond to the private rented sector Minimum Energy Efficiency Standards (MEES) consultation, and publish a part response to the EPC consultation.

The Warm Homes Plan contained a number of CLA proposals and asks, including:

  • A single implementation date of 2030 for EPC ‘C’ rating for new and existing tenancies - previously 2028 for new tenancies.
  • It had previously been proposed that landlords could be expected to fork out up to £15,000 per property to bring them up to the minimum C rating - the cost cap has now been reduced to £10,000. While still high, it is a recognition that £15,000 was simply too high for landlords to absorb.
  • Expenditure from October 2025 will count towards the future cost cap.
  • Personal investments can be eligible as an allowable expense and can be tax deductible.

Certainty and reassurance

CLA President Gavin Lane said:

“Rural landlords are committed to improving the energy efficiency of the UK’s housing stock, and we are pleased that a number of CLA proposals have been adopted to help meet this ambition.

“This announcement provides certainty and reassurance, particularly to those who are already making upgrades that they will not be penalised in future for taking early action.

“Adopting a single implementation date of 2030 recognises that the sector needs time to prepare, and we welcome the chance to engage further on the needs of the rural and heritage sector.”

As part of its Warm Homes Plan, the government says it will deliver £15 billion of public investment, roll out upgrades to up to five million homes that could save them hundreds on energy bills and help to lift up to a million families out of fuel poverty by 2030.