Designing effective retrofit schemes for UK landlords
A report from the Manchester Institute of Innovation Research (MIoIR) at AMBS has called for better design of residential retrofit schemes to support landlords and deliver lasting energy improvements.
The report was developed in collaboration with the National Residential Landlords Association (NRLA), drawing on joint research activities and insights from a workshop with the NRLA policy team.
Improving the energy efficiency of the UK's housing stock is a key policy priority, with implications for climate objectives, energy affordability, and housing quality. Private landlords play a critical role as the private rented sector contains a high proportion of older and energy-inefficient properties.
However, landlords face a complex and evolving policy landscape, shaped by changing regulatory expectations, multiple retrofit schemes, and uncertainties around delivery quality and costs.
Comparative analysis
The MIoIR report compared major residential retrofit schemes across the UK, Ireland, France, and Italy, reviewing a range of government-supported retrofit schemes including centrally administered grants, local authority–led programmes, energy supplier obligation schemes, and tax-based incentive systems.
The comparison highlighted that there is no single retrofit policy model that works perfectly in all contexts. As report co-author Fengwen Yan says: "Across countries, schemes that perform most effectively combine clear institutional arrangements, predictable financial support, strong quality assurance, and alignment with regulatory expectations. Where schemes have struggled or failed to deliver as intended, common contributing factors include administrative complexity, unstable rules, insufficient supply chain capacity, and weak governance."
The report found that institutional arrangements matter. Centrally administered grant schemes generally offer greater consistency and clarity for landlords, while local authority–led delivery can allow flexibility but introduces variability across regions.
Financial incentives
The report found that financial incentives influence behaviour in nuanced ways. Co-author Kate Barker added: "Predictability, timing, and administrative simplicity often matter as much as headline generosity. Fixed or capped grants can reduce risk and support planning but may only enable incremental improvements."
She added that highly generous incentives can drive rapid uptake but may create fiscal, governance, and fraud risks if not carefully controlled. "Supplier-funded incentives can widen access but raise concerns about transparency and quality."
Accreditation
The report found that accreditation systems help establish minimum standards, but outcomes depend on enforcement, inspection capacity, and workforce availability. Rapid expansion of schemes without parallel investment in skills and oversight has contributed to quality problems and increased risk for landlords in several countries.
Co-author Graham Winch added: "The challenge is not only in policy design, but in how retrofit is delivered in practice. These are complex projects involving multiple stakeholders, and effective coordination is critical to achieving consistent and high-quality outcomes."
Instead, clear regulatory expectations - combined with accessible incentives - encourage earlier and more confident investment. Where future standards are uncertain or delayed, landlords may adopt a 'wait and see' approach, reducing the effectiveness of available schemes.
Implications for landlords
The report identifies several guiding principles that are relevant to the future design of government-supported retrofit schemes for the private rented sector:
- Clarity, stability, and predictability are essential. Landlords are more likely to invest where schemes operate within a stable framework, with clear rules and consistent eligibility criteria over time.
- Accessibility for different types of landlords should be a core design consideration. Grant-based schemes that reduce upfront costs and simplify processes are more accessible to smaller or less well-resourced landlords, while designs that rely heavily on tax incentives may favour those with higher incomes and professional support.
- Alignment between regulation and incentives is crucial. Clear timelines for future standards, combined with support that enables compliance, are more effective than regulation or incentives in isolation.
- Strong governance and quality assurance should be treated as core features of scheme design. Clear accountability, inspection, and enforcement help reduce risk and protect both landlords and tenants.
- Supply chain capacity must develop alongside policy ambition. Investment in skills, training, and long-term workforce development is essential to ensure that retrofit delivery remains viable, affordable, and reliable.
Added Fengwen Yan: "This report shows that effective retrofit policy for the private rented sector depends on balancing ambition with practicality, and on recognising the diversity of landlord circumstances. By learning from both UK and international experience, future schemes can be designed to support landlords more effectively while delivering sustained improvements in energy efficiency and housing quality."
The report authors were Fengwen Yan, Kate Barker, Philippe Laredo, Chiara Ogheri and Graham Winch.