The UK government has launched the Warm Homes Plan to help households cut energy bills, improve comfort, and move towards low-carbon heating. Backed by billions in funding, the plan supports homeowners, landlords, and social housing providers to make homes warmer, healthier, and more energy-efficient.
At BB Partnership, we bring extensive experience in sustainable design, including being Certified Passive House Designers with knowledge of the AECB CarbonLite Standards. This means we understand not only the policy, but also the practical realities of delivering high-performance, low-carbon homes in both new-build and retrofit contexts.
Why it Matters
Rising energy costs mean heating is a major burden for many households.
The government has committed to net zero by 2050, and housing upgrades are a key part of this.
Poorly insulated homes contribute to fuel poverty and carbon emissions.
The Warm Homes Plan directly addresses these challenges by providing funding and grants to upgrade insulation, heating systems, and renewable energy options.
Key Parts of the Warm Homes Plan
1. Warm Homes: Local Grant
Funding: £500 million, covering 73 projects across 270 local authorities in England.
Who it’s for: Low-income households with an Energy Performance Certificate (EPC) rating between D and G.
What’s covered: Insulation, double glazing, solar panels, and low-carbon heating systems such as air- and ground-source heat pumps.
Cost to households: None – eligible households receive full support.
2. Warm Homes: Social Housing Fund
Funding: £1.29 billion, supporting 144 projects across England.
Purpose: Upgrade social housing stock to improve energy efficiency and install low-carbon heating.
3. Boiler Upgrade Scheme
Support available: Grants of up to £7,500 are available in England and Wales to help with the cost of installing a low-carbon heating system, such as an air source, ground source, or water source heat pump.
Who it’s for: Unlike the Local Grant, this scheme is not income-tested. It applies to most homeowners, private landlords, and self-build properties, making it widely relevant across the housing sector.
Exclusions: Social housing and new-build developments are not eligible, though self-build homes are.
Simplification: The “one-metre rule” for heat pump installations has been scrapped, making it easier to install these systems. Previously, air source heat pumps had to be sited at least 1m from a property boundary to qualify for permitted development, which made installation difficult in many urban settings. With this restriction lifted, it is now much easier to install heat pumps without needing full planning permission, as long as other basic conditions, such as noise limits, are met.
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Additional Measures
EPC Standards: Private and social rented homes are encouraged to reach at least EPC Band C by 2030.
Stricter Regulations: New compliance checks will help ensure retrofits are high quality and protect households from substandard installations.
Who is Eligible?
Local Grant: For low-income households, gross annual household income of £36,000 or less, living in deprived areas or receiving means-tested benefits, and in privately owned or rented homes with an EPC rating between D and G.
Social Housing Fund: For social landlords upgrading housing stock across England.
Boiler Upgrade Scheme: Open to most homeowners, private landlords, and self-builders, regardless of income. Not means-tested, this scheme is designed to encourage wider adoption of heat pumps.
What This Means for Landlords and Developers
For Landlords
EPC Upgrades Are Coming: By 2030, all rented homes are expected to achieve EPC Band C or above. Landlords with older, less efficient stock will need to plan for insulation, heating, and glazing improvements to remain compliant.
Funding Opportunities:
Social landlords can access the Warm Homes: Social Housing Fund for large-scale retrofit projects.
Private landlords may benefit indirectly where tenants qualify for grants, with upgrades carried out at no cost to the landlord.
Landlords themselves can take advantage of the Boiler Upgrade Scheme, which is not income-tested.
Future-Proofing Assets: Energy-efficient homes are more attractive to tenants and buyers, protecting rental income and long-term property value. Acting early also avoids higher retrofit costs as regulations tighten.
For Developers
Rising Standards: The Warm Homes Plan reinforces the direction of travel in housing policy: higher environmental performance, lower carbon, and healthier homes.
Market Expectations: Buyers and investors are increasingly focused on sustainability and operating costs. Schemes that deliver strong energy performance will stand out.
Planning and Delivery: Local authorities are under pressure to meet government targets. Well-designed schemes that address energy efficiency and low-carbon heating from the outset are more likely to gain support through planning and funding partnerships.
Strategic Advantage: Developers who integrate Warm Homes principles, such as high fabric performance, renewable heating, and compliance with EPC Band C or better, position themselves strongly in a market that is rapidly shifting toward net zero.
The Bigger Picture
The Warm Homes Plan is part of the UK’s broader strategy to cut carbon emissions, tackle fuel poverty, and future-proof the nation’s housing. It represents a significant opportunity for households, landlords, and developers alike to align with sustainability goals while reducing costs.
We’ll also be publishing a follow-up article exploring the practical implications of making these upgrades to existing properties, including both the benefits and the potential risks to avoid when retrofitting.
For landlords and developers, the Warm Homes Plan is both a challenge and an opportunity. At BB Partnership, we can help you review your portfolio, plan retrofit works, and design new schemes that meet the evolving standards for energy performance and sustainability.
For homeowners, our experience as Certified Passive House Designers and our knowledge of the AECB CarbonLite Standards mean we are well placed to assist with the transition from gas heating to efficient, low-carbon heat pumps as part of your project.
