The Renters' Rights Act and energy upgrades in a rented home

Short version

The Renters’ Rights Act changes how a landlord manages a tenancy, but it does not stop a landlord improving a home’s energy performance. What it changes is the surrounding conditions: tenancies are rolling, rent can only rise by one process, and there is no no fault route to an empty property. A planned heat pump or insulation job now has to be organised with the tenant in place.

This is not legal advice. We are an independent publisher summarising GOV.UK guidance as at 8 October 2026. The Act is long, parts of it are still to come into force, and your tenancy has its own terms. Use the official guides listed at the end of this page and take advice before acting.

What changed on 1 May 2026

The Act received Royal Assent on 27 October 2025. The government’s roadmap says the new tenancy regime came into force on 1 May 2026 for new and existing tenancies. For a landlord in England, the first phase includes:

• Section 21 has ended. Private landlords can no longer evict without a valid reason.
• Most tenancies are assured periodic. Fixed terms are prohibited, and tenants can stay on a rolling basis until either side ends the agreement properly.
• Rent increases follow one process, covered in the next section.
• Rent in advance is limited to one month before the tenancy begins, and a landlord cannot require payment before rent is due once the tenancy has started.
• Bidding wars are banned, and landlords cannot discriminate against tenants with children or those who receive benefits.

Everything on this page about the Act refers to England. The planned EPC C rule covers England and Wales.

How rent increases work now

Rent can go up once a year, by a section 13 notice. The notice sets out the new rent and must give at least 2 months before the increase takes effect. The government guide states that all rent increases in the private rented sector will use the same process, and that other methods, such as rent review clauses, are not permitted, so the tenant always has a right of appeal.

If a tenant believes the proposed rent is above the market rate, they can challenge it at the First-tier Tribunal. The tribunal determines what the market rent should be, and the guide says the tenant will not be made to pay more than the landlord originally proposed.

What this means for upgrades:

• No automatic uplift. There is no mechanism to pass the cost of a heat pump to the tenant through the rent beyond what a section 13 notice and the market allow.
• The notice must fit the market. The tribunal looks at market rent. We have not found an official statement on how a tribunal treats an energy upgrade, so we do not claim it adds a specific amount.
• Grant conditions can bar a rise. Under Warm Homes: Local Grant, a landlord declares they will not raise the rent because of the funded work. See the Warm Homes: Local Grant page.

The more practical effect is on the tenant’s bills. A tenant on a rolling tenancy who ends up with a costly to run heating system has a clear reason to complain or leave. The running costs page sets out the numbers: at the Ofgem price cap for 1 October to 31 December 2026, electricity is 26.32p per kWh and gas 7.97p per kWh.

Rolling tenancies and planning works

Because fixed terms have gone, you cannot wait for a term to end to schedule works. A tenancy can continue indefinitely, so the only sensible approach to a heat pump or insulation job is to do it with the tenant in the home.

Plan for these things:

• Tell the tenant early, in writing, what will happen, how long each stage takes and who they should contact.
• Agree access in advance. An installer needs access for a survey and for the install. The GOV.UK guides we read do not set out landlord access rules for works, so we make no claim about notice periods or refusal. Check your tenancy agreement and take advice.
• Ask the installer how long the heating and hot water will be off, and agree a plan with the tenant for that period.
• Keep records. Dated notices and photographs help if there is a dispute with the tenant or with an exemption claim.

Possession for substantial works

The GOV.UK guide lists a possession ground where the landlord wishes to demolish or substantially redevelop the property, in a way that cannot be done with the tenant in place, with 4 months’ notice. We are not saying a retrofit qualifies. Do not plan on this ground without legal advice.

Why talking to the tenant matters more now

With no fixed term to run out, a good relationship with a sitting tenant is worth more than it used to be. A tenant who stays for years benefits from lower bills after fabric work, and a landlord benefits from fewer voids and less turnover. Both outcomes depend on the tenant understanding what is being done and why.

Tell the tenant what the work is meant to achieve, for example a warmer home, and be honest about the running cost. A heat pump with a poor fabric can cost more to run than the gas boiler it replaced, and a tenant who finds that out afterwards has grounds to be unhappy. Telling them first, and fixing the fabric before the heating, avoids most of that.

How the Act connects to the EPC C rule

The two sets of rules meet in two places.

First, enforcement. The government response on privately rented homes says the private rented sector database, created through the Renters’ Rights Act, will help local authorities identify which properties are let. Local authorities can then enforce the planned EPC C rule, with a planned maximum penalty of £30,000 per breach per property. That is planned, not yet law. Today’s limit is £5,000 per property in total.

Second, timing. The database starts from late 2026. The Landlord Ombudsman is in the same second phase, and mandatory membership is expected in 2028. The later items, the reformed Decent Homes Standard and the extension of Awaab’s Law to the private rented sector, need further regulations and have no confirmed start date.

The planned EPC C date is 1 October 2030, and the cost cap is £10,000. See the cost cap and exemptions page for how third party consent and tenant refusal fit into the planned exemptions. For example, the response allows a registered exemption where a required third party consent is refused, and for smart meters the response says a tenant’s refusal of a smart meter can support such an exemption.

A sensible order for an upgrade under the new tenancy rules

1. Check the tenancy agreement for anything on works and access.
2. Look up the EPC and the recommendations. See whether a heat pump improves an EPC rating.
3. Talk to the tenant about the proposed work and the likely effect on bills before you commit.
4. Do fabric work first where the EPC recommends it, since it helps the tenant’s bills whatever the heating.
5. Book installers for a time that suits the tenant, and agree access in writing.
6. Do not pair the work with a rent rise unless you have taken advice on the section 13 process and the market evidence.
7. Keep every document, including the installer’s commissioning paperwork and any grant paperwork.

For the installation side, the before you install checklist covers the practical steps.

When this is not the right moment

If a tenancy is already in dispute, for example over arrears, repairs or a notice, adding a large upgrade can make matters worse. Settle the dispute first. And if a property is going to be sold within the year, a heat pump is unlikely to pay back in that time, so a lower cost fabric measure may be better.

What to read on GOV.UK

These are the official sources behind this page. Read them directly, because the detail is what matters for your tenancy.

• Guide to the Renters’ Rights Act, on GOV.UK
• Implementing the Renters’ Rights Act 2025: our roadmap for reforming the private rented sector
• The landlord pages on the Renting is changing site run by MHCLG
• Improving the energy performance of privately rented homes: government response

The source list below the page links the first, second and fourth of these. Our summary is not a replacement for them.

Next step

If you are weighing a heat pump for a tenanted property, the landlord calculator models cost and running cost. To have independent firms contact you about a specific home, send an enquiry on the quote page: relevant firms contact you, with no charge to you and no obligation.