How The 2026 UK Budget Changes EPC Grants
The 2026 UK Budget Changes EPC Grants So Landlords Must Act Now
The landscape of home-energy support in the UK is entering a period of major transition after the 2026 UK Budget changes EPC Grants. With the government signalling the end of the long-running ECO4 scheme in March 2026, and a new focus on the Warm Homes Plan many property owners are asking the same question: What support will actually be available next year, and who should act now?
The short answer is that meaningful funding is still available, but the coming year will see important structural changes. For landlords and homeowners, particularly those with older or lower-performing properties, this is a pivotal moment to secure improvements while resources remain strong and demand is manageable.
In this article:
- Funding is strongest now, with ECO4 still active and the Warm Homes: Local Grant fully confirmed through 2028.
- Demand and installer pressure will rise sharply as ECO4 nears its closure in 2026, making early applications far more secure.
- Acting today future-proofs your property, boosts EPC ratings, and delivers long-term savings and comfort for occupants.
Why Landlords Should Act Now And Not Wait for the New Year
For landlords, the next few months represent one of the most advantageous periods in over a decade to improve property efficiency, but only for those who act before demand peaks. With ECO4 entering its final full year of operation and the Warm Homes: Local Grant already rolling out, delaying until the new year could mean missing out on the most favourable conditions for securing funded upgrades.
There are three key reasons why early action matters:
Funding Availability Is Highest Right Now
ECO4 remains fully funded until March 2026, but as the scheme approaches its planned end date, uptake is accelerating. Installers, assessors and local-authority delivery partners are already warning that capacity will tighten as the deadline gets closer. Acting early ensures you access funding while routes remain open and grant pots are still well resourced.
Installer Capacity Will Shrink as Deadlines Approach
Retrofit teams across the UK expect a surge of last-minute applications in early 2026 as landlords who delayed attempt to secure upgrades before ECO4 closes. This leads to longer wait times, reduced appointment availability, and in some areas, projects being pushed beyond the deadline altogether. Starting now avoids the bottleneck and guarantees your property is in the queue while delivery partners still have capacity.
You Benefit Before Winter Costs Rise Again
Upgrades such as insulation, heating improvements and ventilation measures deliver immediate reductions in energy use. Applying now means your tenants feel the benefits sooner, reducing winter heating costs and improving comfort during the colder months. This strengthens tenant satisfaction, lowers rent-arrears risk linked to energy affordability, and keeps properties in better long-term condition.
With ECO4 ending and the Warm Homes Plan expanding, the retrofit system is about to enter a transitional phase. Schemes may overlap, but they will not offer the same certainty. By acting now, landlords effectively “lock in” today’s funding while positioning their properties to meet tomorrow’s regulatory and market expectations.
Funding That Is Confirmed in the Warm Homes: Local Grant
The Warm Homes: Local Grant is one of the most significant new funding streams available to landlords and homeowners over the coming years, and unlike many schemes currently under review, this one is fully confirmed and already underway. Backed by a committed £500 million funding package spread across three financial years, 2025/26, 2026/27 and 2027/28, the grant is designed to help low-income and fuel-poor households make meaningful improvements to their energy efficiency. Crucially, the programme is delivered through local authorities, ensuring that upgrades are targeted, practical, and responsive to the specific needs of local housing stock. For the first year of delivery alone, £88 million has already been allocated, with further annual releases expected to expand coverage and capacity.
Unlike ECO4, which is tied to energy suppliers and is now approaching the end of its lifecycle, the Warm Homes: Local Grant represents a stable, government-funded successor designed to ensure continuity in home-upgrade support. The grant covers a wide range of improvements, allowing both homeowners and eligible landlords to address key issues that cause heat loss, high bills, and declining property condition.
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Measures can include various forms of insulation such as loft, cavity wall, and solid-wall upgrades, as well as modern low-carbon and renewable heating systems. Importantly, the scheme supports interventions across homes heated by gas, electricity, oil, or alternative fuels, making it highly relevant to rural and off-grid properties as well as urban rentals. The overarching aim is to raise EPC ratings, ideally to Band C where achievable, helping properties meet future regulatory expectations and improving long-term affordability for occupants.
For landlords in particular, this grant offers a practical way to future-proof their portfolio during a period of widespread policy transition. Energy efficiency is becoming a central focus of both government strategy and tenant expectation, and properties that fall behind risk becoming harder to let, more expensive to maintain, and potentially subject to future compliance challenges. By making improvements under the Warm Homes: Local Grant, landlords can secure high-value upgrades with minimal upfront cost, protect rental income, and reduce the likelihood of larger retrofit costs later. The grant not only supports better-performing homes but also contributes to tenant comfort and financial stability, two factors that strongly influence tenancy length and reduce arrears linked to rising heating costs.
In short, the Warm Homes: Local Grant provides a rare combination of stability, funding certainty, and practical support at a time when other schemes are winding down or being reshaped. It is one of the clearest opportunities available for landlords and homeowners to invest in their properties’ future, increase their EPC ratings, and deliver lasting benefits for the people living in them.
Why Property Owners Should Take Advantage Now
With the UK’s home-energy funding landscape shifting, property owners are in a uniquely favourable position, but only if they act while current schemes overlap and capacity remains strong. The period between now and early 2026 presents an exceptional opportunity to secure substantial, often fully funded, energy-efficiency upgrades through ECO4 and the Warm Homes: Local Grant. Both schemes are active, both have well-defined delivery routes, and both currently enjoy strong funding reserves. This creates a window where homeowners and landlords can benefit from generous support before policy changes reshape how upgrades are delivered. Acting now gives property owners the best possible chance of accessing funding before demand increases, installer capacity narrows, and scheme deadlines introduce greater uncertainty.
For homeowners, the advantages are immediate and long-lasting. Upgrades such as loft or wall insulation, modern heating systems, and energy-efficiency improvements can significantly reduce energy bills while making the property warmer, healthier and more comfortable to live in. Many households underestimate the practical impact of these measures until they experience them.
Lower heat loss, fewer cold spots, improved air quality, and more stable indoor temperatures all translate into a better quality of life, particularly during the winter months. Applying now means these benefits can be felt sooner rather than later, avoiding the rush that inevitably comes as deadlines approach and giving homeowners enough time to complete multiple measures if their property needs a whole-house approach.
For landlords, the case for early action is even stronger. Energy-efficient homes are increasingly becoming a competitive necessity in the rental market, with tenants actively seeking homes that are warmer and more affordable to run. Properties with poor EPC ratings risk becoming harder to let and more expensive to maintain, and may face future compliance challenges as regulations continue to tighten toward 2030. By taking advantage of available funding now, landlords can improve the long-term viability of their portfolios while providing tenants with safer, more comfortable living conditions. Improvements paid for through ECO4 or the Local Grant not only add value to the property but often reduce ongoing maintenance costs linked to damp, mould and poor ventilation, issues that disproportionately affect older, less efficient homes.
Industry insight also points to a clear trend: as ECO4 moves into its final year, demand is expected to rise sharply. Installers and delivery partners are already highlighting likely bottlenecks in early 2026 as thousands of households attempt to secure work before the scheme closes. This means those who delay may face long wait times, limited availability of installers, or the risk of missing the deadline entirely. Acting now ensures a smoother process and gives property owners priority access while delivery teams still have capacity. Combined with the confirmed multi-year funding of the Warm Homes: Local Grant, this creates a brief but important period where participating early offers the highest chance of securing comprehensive upgrades.
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Ultimately, taking advantage of the available schemes now is a strategic move that supports financial stability, increases property value, and builds resilience against rising energy costs. Whether you are a homeowner looking to improve your comfort and reduce bills, or a landlord seeking to future-proof your properties and support your tenants, the current moment provides a rare alignment of funding certainty and delivery opportunity. Waiting risks higher costs, greater competition and reduced access to skilled installers, while acting today sets your property up for a more efficient, sustainable and profitable future.
Final Thoughts
The coming year marks a pivotal moment for energy efficiency in the UK. With ECO4 approaching its end and the Warm Homes: Local Grant launching with confirmed multi-year funding, landlords and homeowners have a powerful opportunity to secure valuable upgrades before the system shifts into its next phase. Acting now provides access to well-funded schemes, stronger installer availability and the chance to deliver real, long-term improvements to both property condition and energy performance. Whether your priority is reducing energy bills, increasing rental value, meeting future regulations, or simply making your home more comfortable, the current overlap of support schemes creates the ideal moment to take action. By stepping forward early, property owners can maximise funding, avoid delays and ensure their homes are prepared for the future, rather than playing catch-up when demand peaks.
