Are We About to Lose the Heart of the Rental Market?

By EcoGiants

17 Apr 2025

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Retrofit is one of the biggest opportunities and challenges facing the UK housing sector today. As we work toward national climate targets and seek to reduce household bills, upgrading the energy performance of our homes has become a top priority. But in the race to retrofit, one important group is being left behind... small landlords.

At EcoGiants, we are right behind the retrofit mission. We help deliver smart, sustainable energy solutions every day, working with property owners across Lancashire and beyond. But we are also seeing first hand how current policies are unintentionally creating barriers for those who make up a large portion of the rental market.

Local landlords are under pressure
From EPC rating deadlines to compliance with complex frameworks like PAS 2035, the expectations placed on landlords are growing rapidly. For larger housing associations and property funds, the resources are often there to manage the transition. But for the thousands of smaller landlords who own just one or two properties, the journey is far less straightforward.

These are not faceless investors. They are ordinary people, many retired, many managing property on the side of other work who are trying to keep homes warm, habitable and affordable.

For them, retrofit can feel like a mountain to climb. Assessments are difficult to access, finance options are confusing and the lack of consistent advice leaves many unsure of where to even start.

The risk of losing local ownership
The result? Many landlords are considering leaving the sector altogether. Some already have. The danger is clear. If smaller landlords exit the market in large numbers, they will be replaced! Not by more local providers, but by national and institutional investors.

That shift could bring unintended consequences. Less local accountability. Less variety in housing stock. And ultimately, higher rents.

For Lancashire, where local knowledge and community connection are key parts of the housing mix, this would be a real loss.

Retrofit must be made manageable
At EcoGiants, we believe that retrofit should not be about ticking boxes or pushing people to the edge. It should be about real improvements, made in a way that is realistic, affordable and easy to understand.

Here is what we think needs to happen:

  • Access to funding must be simpler.  Too many schemes are inaccessible or buried in paperwork
  • Guidance should be practical and clear with no jargon and no pressure
  • Phased improvements should be recognised as we cannot expect every home to transform overnight
  • Landlords should be seen as partners not problems to be solved

We work with landlords every day to help them make informed decisions and deliver retrofit plans that meet both regulatory requirements and the realities of their budget. And we know that with the right support, most are keen to improve their properties.

A better approach for a better future
Retrofit is not just a policy target. It is an opportunity to create better homes, healthier communities and stronger local economies. But to get there, we need to bring everyone along for the journey, especially the smaller players who make up the backbone of the rental market.

If we ignore their challenges, we risk creating a rental system that works only for the few.

At EcoGiants, we are committed to helping build a retrofit future that is fair, inclusive and built to last.

For advice on retrofit solutions, energy upgrades or support with PAS 2035 compliance, visit: www.ecogiants.co.uk

Enjoyed this? Read more from EcoGiants

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