Urban health

Creating healthier homes in the private rented sector

In 2024, we partnered with the National Retrofit Hub to understand more about how to improve the quality of homes in the private rented sector. In this guest blog, Cara Holmes explores what we learnt.

Cara Holmes

Technical Programme Manager, National Retrofit Hub

In the UK, over a third of the 4.5 million households in the UK that rent privately struggle to heat their homes to a comfortable temperature – and are forced to make the choice between heating their homes and paying for essentials like food.

Nearly a quarter of private tenants experience fuel poverty, and this situation is made worse when homes are poorly insulated, inadequately ventilated and expensive to heat.

Cold, damp homes can lead to respiratory conditions, hypothermia, poor mental health, and problems with childhood development – deepening health inequalities for people that are already struggling financially.

Despite government commitments to improve energy efficiency, progress in the private rental sector has been slow.

Many landlords are hesitant to invest in upgrades, and current policies do not go far enough to drive meaningful improvements. If we are serious about tackling fuel poverty and cutting emissions, the private rental sector must be part of the solution—not left behind while other types of housing make progress towards being more efficient.

A pathway to equitable and effective retrofit

That’s why we’ve partnered with Impact on Urban Health to publish Raising Standards in the Private Rental Sector: A Pathway to Equitable and Effective Retrofit, highlighting the urgent need for improvement, uncovering challenges unique to the sector, and offering comprehensive recommendations for improving energy efficiency in the private rental sector.

The report calls for bold action to bring the sector into alignment with the UK’s decarbonisation goals, focusing specifically on the urgent need for policy reform and targeted investment in energy efficiency focused retrofits.

What we found

Landlords are pragmatic, not reactionary

The idea that landlords will exit the market in response to stricter energy efficiency rules is not supported by evidence. Many landlords, particularly those with long-term investments, see their properties as a stable financial asset rather than something they will quickly sell in response to new rules.

Rather than resisting change, landlords want clarity on what is required of them and support to comply. They are more concerned about unclear policies and inconsistent messaging than they are about regulation itself.

Regulation is seen as a ceiling, not a floor

Most landlords aim to meet regulatory requirements, but few go beyond the minimum legal standard. This means that if energy efficiency regulations remain weak, landlords are unlikely to take proactive steps to improve their properties.

This is concerning because landlords making only minimum effort means that without drastic intervention, fuel poverty will persist, leaving tenants trapped in cold, inefficient homes.

Financial barriers are the biggest challenge

One of the most significant barriers landlords face are upfront costs. Many landlords, particularly those without mortgages, are reluctant to take on debt to fund improvements.

The financial challenge is exacerbated by an uncertain policy environment. Without clear direction and stable long-term plans, landlords may delay or avoid investing in upgrades. A lack of financial incentives or accessible funding options further discourages action.

Our recommendations

There needs to be a coherent, well-resourced strategy to retrofit homes across the private rented sector. In our report, we explore some key recommendations for policy makers:

Clear, ambitious, and enforceable standards

Minimum Energy Efficiency Standards (MEES) must be strengthened to drive real improvements. This means:

Setting a realistic but firm timeline for compliance so landlords can plan ahead
Providing clear, practical guidance on the best pathways to improve efficiency
Developing a well-structured roadmap, which would give landlords the certainty they need to invest in retrofit without waiting for last-minute policy changes

Financial solutions to remove barriers

Landlords need affordable and accessible funding options to make energy efficiency improvements. Potential solutions include:

Tax incentives to offset the cost of insulation, heat pumps, or other efficiency upgrades
Full-service financing solutions, such as on-bill schemes, where the cost of improvements are repaid gradually through energy bills
Targeted grants and subsidies for landlords with older properties or tenants at risk of fuel poverty

Better support and guidance for landlords

Many landlords do not know where to start with energy efficiency improvements. A lack of clear, trusted information prevents action. To address this, policymakers should:

Create a central information hub where landlords can access funding options and best practices
Encourage letting agents and property managers to help landlords navigate retrofit solutions
Run awareness campaigns to ensure landlords understand the financial and long-term benefits of improving energy efficiency

Tighter compliance and tenant protections

While landlord support is crucial, it’s also important that tenants are adequately protected and can enforce their rights when things go wrong. This means:

Funding for local authorities to enforce standards effectively
Ensuring retrofit improvements do not lead to unfair rent increases or displacement
Raising tenant awareness about their rights and available support

Transforming the private rental sector

The debate around energy efficiency has been held back by fears that landlords will leave the market. But our research indicates that landlords are not opposed to regulation; they just need clarity, financial feasibility, and practical support.

By setting clear standards, making retrofit financially viable, providing better guidance, and ensuring fair enforcement, policymakers can drive large-scale improvements without destabilising the sector.

Our report paints a clear picture of the challenges that tenants and landlords face in the private rented sector face—and explores the significant opportunities for change.

By implementing targeted, ambitious policies that prioritise retrofit, incentivise investment, and strengthen compliance, we can create a private rented sector that’s fit for the future and improve the quality of life for millions of renters.