Retrofit for Lets
Start date – End date
Budget
Summary
A Local Area Advice Demonstrator (LEAD) project in Warrington addressing barriers to energy efficiency retrofit in the private rental sector. The initiative developed comprehensive advisory services using a ‘test and learn’ approach to find what works for landlords, and worked with a panel of finance professionals to explore financial solutions. Through landlord engagement, policy awareness messaging, and wraparound support, the project successfully engaged 172 landlords, delivered 96 consultations, and completed 47 retrofit assessments.
What problem are we trying to solve?
The private rental sector faces significant energy efficiency challenges, with 23% of households in fuel poverty- the highest rate across all housing sectors. A complex split-incentive exists where landlords bear retrofit costs whilst tenants receive the benefits, creating reluctance to invest. Landlords cite concerns about payback periods, property values, bad experiences with previous schemes, and low trust in local authorities. Meanwhile, tenants fear eviction if they complain about energy efficiency or worry about rent increases following improvements.
Despite similar numbers of private renters and owner-occupiers being in fuel poverty (1.19m vs 1.33m households), private renters have historically received only 14% of ECO grants compared to 70% for owner-occupiers (generation rent). This inequity, combined with landlords who typically act when compelled by regulation and tenants who rarely consider energy efficiency when choosing rentals, creates a systemic failure to improve some of the UK’s least efficient housing stock.
How are we doing this?
The project employed a multi-faceted approach centered on high-quality service delivery and strategic messaging. Initial engagement involved advice drop-in sessions at local cafés within target areas, advertised through local authority social media and landlord mailing lists, plus attendance at local private rental sector forums.
Key messaging focused on “staying ahead of legislation,” particularly the upcoming Minimum Energy Efficiency Standards requiring EPC ‘C’ ratings by 2030. The project provided initial 30-minute retrofit advice consultations followed by comprehensive support to limit drop-offs and maximise retrofit action. Thirty energy efficiency advice café sessions were hosted in local communities, with engagement levels strongly tied to local authority interaction with landlords.
What’s the innovation?
The project pioneered an approach that moved beyond traditional jargon-heavy marketing to focus on regulatory compliance messaging. The innovation lay in combining policy awareness (“staying ahead of legislation”) with secondary messaging on tenant comfort, attracting higher quality tenants, and lowering energy bills. This was accompanied by landlord engagement through local café sessions, and providing intensive support to landlords through the process to minimise drop-offs. The project also actively involved finance professionals in exploring how financial products and incentives could compliment policy drivers, technical advice, and links to supply chain.
What did we learn?
Landlords are primarily motivated by regulatory compliance rather than financial returns or environmental benefits. The upcoming EPC ‘C’ requirement by 2030 proved the most effective engagement trigger. Direct and digital marketing approaches were ineffective, whilst face-to-face outreach and trusted advisory services achieved strong results.
Successful motivation requires a combination of clear policy drivers, practical support through trusted services, an engaged local retrofit supply chain, and financial assistance through grants and low-cost loans. Local authority engagement levels with landlords directly correlate with project success, highlighting the importance of established relationships and trust-building in this sector.
A whole system solution is needed to accelerate domestic retrofit adoption across the private rental sector, with potential applicability to the owner-occupier market too. A fully integrated approach combining retrofit advice, contractor signposting and accreditation, insurance-backed industry standards, and targeted tax relief could unlock acceleration of housing decarbonisation when launched alongside regulatory enforcement.