Guide to the Warm Homes Plan: from heat pumps to ventilation

The Warm Homes Plan is seen as a vital step in addressing both energy efficiency and affordability for vulnerable households. With funding available to support the integration of heating and ventilation solutions, a clear understanding of the Warm Homes Plan is needed for landlords and developers to meet its funding criteria. 

The Warm Homes Plan explained

The Warm Homes Plan is a government initiative designed to improve energy efficiency and reduce heating costs for households across the country. First proposed by the government in 2022, the plan aims to tackle energy poverty and climate change by upgrading 300,000 homes by 2025.

 In November 2024, the first step of the Warm Homes Plan was published, outlining the framework for these upgrades, focusing on insulation, renewable energy systems, and modern heating solutions. The Labour Party’s Autumn budget announcement included an additional £6.6 billion to accelerate these improvements, ensuring more households benefit from the program. Further clarity on when the funding will be made available is expected in the upcoming Spring budget, as the government works out the specifics of its rollout.

What funding is available as part of the Warm Homes Plan?

Under the Warm Homes Plan, landlords and developers can access a range of funding to support the installation and integration of energy solutions and heating systems.

Boiler Upgrade Scheme 

The Boiler Upgrade Scheme offers grants for homeowners in England and Wales to install low-carbon heating systems like heat pumps. Available from April 2022, the scheme is expected to run until 2028. The scheme has been consistently revised, with the latest updates to planning permissions and heat pump integration taking effect in 2025. These changes will see the relaxation of guidelines surrounding the installation and integration of heat pumps. The loosening of  current guideline includes the scrapping of the ‘1 metre rule’, which requires heat pumps to be at least one metre from the property boundary. 
Grants available under the scheme include: 

• £7,500 towards an air source heat pump 
• £7,500 towards a ground source heat pump (including water source heat pumps) 
• £5,000 towards a biomass boiler (dependent on circumstances) 

The combined integration of heat pumps with ventilation units is an effective solution for meeting the funding criteria by enhancing energy efficiency and lowering operational costs. Together, heat pumps and ventilations can be used to create modern, quality living environments that are efficiently ventilated, heated and cooled. Their integration also ensures compliance with wider energy saving goals as well as optimising performance, creating long-lasting and sustainable building systems. 

The scheme has been designed to help the government meet their target of having all new heating systems installed in the UK from 2035 to be low-carbon heating. The funding available encourages landlords, developers, and property owners to integrate energy-efficient solutions that reduce carbon emissions and reliance on fossil fuels. With these changes, the scheme supports the transition to greener, sustainable energy sources in homes.

Warm Homes: Local Grant

The £500 million Warm Homes Local Grant is launching in 2025, and aims to support low-income households with energy efficiency upgrades. The primary goals of the grant are to reduce fuel poverty by helping fuel-poor households reach a higher EPC rating, providing occupants with substantial, long-term financial savings.

The funding available under the Warm Homes grant is separated into two available routes, both capped at £15,000. This includes: 

• Funding for energy performance upgrades 
  
• Funding for low-carbon heating

 In order to be eligible for the local grant, properties must have an initial EPC of D-G, or be new builds that have never been occupied.  Funding allocation is expected in February 2025, whilst installations are expected to begin in April.

Warm Homes: Social Housing Fund Wave 3

The £1.2 billion Social Housing Fund Wave 3, allocated in the budget, will be delivered between 2025 and 2028 by eligible social housing landlords. This funding aims to improve the quality, safety, and sustainability of social housing, addressing key needs such as repairs, modernisation, and energy efficiency upgrades.

Support for low-income households

Boosting minimum energy standards

Under the Warm Homes Plan, energy efficiency standards will be raised for rented homes, both private and social, by 2030. This includes making an Energy Performance Certificate (EPC) B and C the minimum required standard, ensuring homes are more energy-efficient and reducing carbon emissions.

 Raising the required energy efficiency ratings for rented homes (private and social housing) by 2030. This includes making EPC Band C the minimum standard.

What are the standards and codes of practice in the Warm Homes Plan?

The Warm Homes Plan outlines a set of codes and practices designed to enhance energy efficiency and improve living conditions in low-income households. These standards ensure that homes are properly insulated, ventilated, and meet minimum energy performance criteria, helping to reduce fuel poverty and increase overall comfort.

 Key standards and codes of practice under the plan include:

• Minimum EPC Rating Standards: Homes must meet a minimum Energy Performance Certificate (EPC) rating to qualify for funding, ensuring improved energy efficiency.
• Thermal Insulation: Homes must meet specific insulation standards to reduce heat loss and improve thermal comfort.
• Ventilation Standards: Ensuring homes are properly ventilated to meet ventilation requirements and to prevent damp and mould while maintaining indoor air quality.
• Proactive Monitoring: Continuous checks and assessments to guarantee that the energy efficiency standards and acceptable living conditions are consistently maintained.

How does the Warm Homes Plan affect landlords and property developers? 

The plan places increased pressure on landlords and property developers to improve ventilation systems in existing properties, ensuring they meet air quality and ventilation standards. As regulations tighten, landlords must invest in upgrading ventilation to provide healthier living conditions. This is part of a broader push for improved housing quality, as reflected in Awaab’s Law and the Social Housing Regulation Act, emphasising tenants' rights to safe, well-ventilated homes.

Landlords and property managers face greater regulatory oversight, compelling them to act now and avoid penalties. Despite this, heat pump installations are behind schedule according to the 2024 Progress Report from the Climate Change Committee (CCC), highlighting the need for urgent action in the transition to low-carbon heating.

To stay ahead, property developers and landlords should take a proactive approach, integrating energy-efficient technologies into new builds and refurbishments. This will not only ensure compliance but also attract environmentally conscious tenants while contributing to the government’s wider sustainability goals.

How Airflow can help 

Airflow’s ventilation and air quality solutions can help you stay on top of the shifting criteria properties need to meet. Our systems help landlords and developers proactively address heating and air quality, with ventilation and heat pumps working together to ensure compliance and comfort in every development. From Mechanical Ventilation with Heat Recovery (MVHR) to air source heat pumps, our solutions can support you as you “future-proof” your properties, meeting and exceeding criteria for energy efficiency and committing to creating safer, healthier living environments. 

Get in touch with our team to discover how you can incorporate Airflow’s solutions in your properties and developments.