Warm Homes Plan piles on pressure for DIY landlords

The government's renewed focus on energy efficiency in the private rented sector is set to place further strain on DIY landlords, according to a leading brokerage founder.

But Ian Macbeth, managing partner of Avocado Property believes this has created a significant commercial opportunity for professional letting agents.

This week, ministers outlined further detail around the government's Warm Homes Plan and confirmed that Energy Performance Certificates will be reformed from 2026, signalling tighter expectations around energy standards in rented homes, even as key timelines and enforcement mechanisms remain undecided.

The Warm Homes Plan includes a £15 billion commitment to upgrade up to five million properties by 2030, with measures such as a £7,500 heat pump grant, incentives for solar panels and government-backed loans for energy efficiency improvements. While framed around reducing household energy bills and fuel poverty, the government has made clear that landlords will be expected to play a central role in delivering warmer, more efficient rental homes.

Alongside this, 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 reforms sit within wider ambitions to raise minimum standards across the private rented sector and follow years of discussion around tougher energy efficiency requirements for rental properties.

Evidence and process

Ian Macbeth, co-founder and managing partner of Avocado Property, said the announcements highlight how energy compliance is becoming inseparable from wider tenancy regulation, particularly following the passage of the Renters' Rights Act.

"Energy efficiency reform doesn't exist in isolation," he said. "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."

More than 23 per cent of UK lets are now serviced through DIY platforms such as OpenRent, but Avocado argues that the regulatory direction of travel is now firmly towards professionalisation.

"For years, agents have been competing with DIY platforms on price," said Macbeth.

"That was always a difficult battle. What's changing now is that risk is moving decisively back into the conversation."

He added that energy efficiency obligations are likely to expose the limitations of casual self-management.

"Understanding EPC ratings, future benchmarks, improvement requirements and how all of that interacts with tenant rights is not a side project," he said. "It requires structured processes, accurate records and technical oversight throughout the tenancy."

Macbeth said this creates a clear opportunity for 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," he said. "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 many of the major changes introduced by the Renters' Rights Act due to come into force on 1st May, Macbeth said agents should be using the remaining runway to tighten their own compliance and educate landlords on the realities ahead.