Thousands of private renters are being denied access to the government’s flagship ECO4 home energy scheme because landlords are refusing consent for free energy efficiency upgrades, energy specialists warn – blocking tenants from potential savings of up to £800 a year on energy bills.
The ECO4 scheme, which funds insulation, heating upgrades and other measures to improve energy efficiency, has already delivered more than 810,700 measures across UK households. Yet many eligible tenants remain trapped in cold, inefficient homes, as the scheme cannot proceed without written landlord consent.
“Landlords can no longer afford to remain inactive,” says David Walker, energy specialist at OHMS Renewables. “With energy efficiency laws tightening and penalties on the horizon, ignoring ECO4 support isn’t just unfair to tenants, it risks leaving properties unlettable, devalued, and legally non-compliant.”
Industry data shows that improving a property’s Energy Performance Certificate (EPC) rating can increase its market value by up to 16% compared with similar homes that haven’t been upgraded.
Homes improved from EPC band F to C achieved an average sale price £55,111 higher than less efficient properties. Upgrading from E to C can add around 8%, while improving from D to C typically boosts value by around 4%.
David continues: “ECO4 improvements are effectively free capital investment for landlords. Insulation, modern heating systems, and solar installations not only make homes cheaper to run, but they also make them more desirable to buyers and tenants. In a market where energy costs are top of mind, an efficient home is worth considerably more.
“Landlords who act now can future-proof their properties, protect rental yields, and increase long-term asset value, all while helping tenants through the cost-of-living crisis.”
The warning comes as the Renters (Reform) Bill continues to progress through Parliament, bringing new rules that could soon make it illegal to let homes failing to meet minimum EPC standards.
OHMS Renewables cautions that landlords who delay improvements could soon find themselves unable to legally rent out properties or face financial penalties under strengthened local authority enforcement powers.
“ECO4 offers fully funded upgrades for qualifying homes, no upfront cost, and potentially hundreds of pounds saved annually,” adds David. “But without landlord consent, tenants are powerless. It’s a loophole that urgently needs closing.”
What tenants can do if their landlord refuses ECO4 upgrades
