An internal government rift is reportedly holding up the launch of the Warm Homes Plan, with the core disagreement centring on how much financial burden should be placed on landlords to meet new energy efficiency targets.

According to reports in The Times, officials in the Treasury and the Department for Energy Security and Net Zero (DESNZ) are at loggerheads over the proposed cost cap for landlords to upgrade their properties to an EPC C rating.

The Core Conflict:

• The Proposal: Energy Secretary Ed Miliband has put forward a target for all private rented properties to achieve an EPC C rating by 2030 (with a deadline of 2028 for new tenancies).
• The Cost Cap: The current proposal involves raising the maximum a landlord must spend on upgrades before qualifying for an exemption to a significant £15,000 per property. This figure has reportedly been the flashpoint for the internal government dispute.
• Warm Homes Delay: The wider Warm Homes Plan, which includes grants for heat pumps and support for low-income households, was scheduled to launch this month but has been delayed until “before the end of the year,” frustrating the energy industry and holding up billions in investment.

Industry Warning: A Landlord Exodus Looms

Landlord organisations are sounding the alarm over the affordability and unintended consequences of the proposed £15,000 cost cap.

Propertymark’s Head of Policy and Campaigns, Timothy Douglas, warned that such a sudden, high-cost expectation could: “lead to homes being withdrawn from the market altogether.”

For landlords, many of whom are operating on tight margins, forcing a £15,000 investment, particularly in older or ‘hard-to-retrofit’ properties, is seen as completely unrealistic and punitive. Industry groups are urging policymakers to consider a more realistic cap, a phased approach, and proper support schemes to prevent a market exodus that would ultimately shrink rental stock and hurt tenants.

The Government Line:

Both the Treasury and DESNZ have officially denied reports of any internal rows, with a DESNZ spokesman calling the claims “categorically untrue.” They maintain that the Warm Homes Plan will go ahead to make homes “cheaper and cleaner to run.”

The question for landlords remains: is the government prepared to sacrifice rental supply for a policy that demands investment completely detached from the profitability and value of individual properties?