Last week, the much-anticipated Warm Homes Plan landed. Behind the cosy name sits a programme that will touch almost every corner of UK housing market: renters, homeowners, finance providers, installers, and the wider energy supply chain.

The government has billed the Plan as “the biggest public investment in home upgrades in British history”, and it’s arguably the most comprehensive proposal to date to tackle one of the UK’s thorniest climate challenges: decarbonising our 30-odd million homes. 

The Warm Homes Plan could help to stimulate demand for green home upgrades

Since as early as 2006, lenders have offered a range of financial products to incentivise homeowners to improve the energy efficiency of their homes. Despite extensive promotion, however, there has been limited uptake because of low-consumer demand. The Plan aims to tackle this challenge head-on with a £15bn package of measures. 

At the centre of the Plan is the proposed Warm Homes Agency, which will provide the core support required to make the green home‑upgrade simpler and safer for homeowners. 

Many of the measures we called for in our paper Greening Homes, Creating Growth fall within the remit of the Agency:

• A single coordinated cross-tenure delivery body.
• A single trusted source of impartial advice to households.
• Strengthen the supply chain by supporting existing heating engineers to transition to clean heat.

In our report, we emphasised the importance of government working in partnership with lenders to innovate and develop low-cost finance products. Here, the Plan announced the establishment of a Green Home Finance Strategic Partnership focused on addressing barriers and unlocking the green home finance market. 

We also warned that it is vitally important that nobody is left behind in the low carbon transition, and the Warm Homes Plan rightly reflects this.

Over a million households in the private rented sector are in fuel poverty: the highest rate of any tenure. Setting a single deadline of 2030 for minimum energy efficiency standards in the private rented sector gives clarity to renters and landlords on the direction of travel, while a set of exemptions ensures the approach remains fair.

The expansion of the Boiler Upgrade Scheme, alongside low- and zero-interest loans and grant funding for low-income households, will also help to offer all households a means of affordably decarbonising their homes. 

Uncertain expectations for homeowners remain a large stumbling block

Our report argued that transforming the UK’s housing stock requires more than just incentives. The plan delivers these, offering a compelling package for consumers, but stops short of setting the long-term expectations needed for homes across all tenures.

The Plan, for example, commits to tightening minimum energy efficiency standards for the private rented sector, with similar requirements for social housing likely to follow. In comparison, the owner occupier sector – the UK’s largest housing tenure group – has received little policy attention. 

Long-term expectations, delivered in a carefully coordinated manner, allow homeowners to prepare and gives suppliers and lenders certainty of future demand. Without these, the government risks sending the message to owner occupiers that green home upgrades are optional rather than essential. As a result, many will continue to delay action in the hope that costs fall, creating a self-reinforcing cycle where low demand inhibits the market’s ability to scale and drive prices down. 

Finally, although the Plan does include illustrative examples of potential bill savings, homeowner expectations around the running costs of low-carbon tech remain uncertain. This is important, as research we commissioned found that that lower energy bills are a primary motivator for homeowners considering energy efficiency upgrades. The 2025 Autumn Budget’s steps to rebalance electricity costs were a start, but it’s clear that further action will be needed to give households the confidence to invest in upgrades.  

Implementation is now key

The Warm Homes Plan offers an attractive consumer proposition for green home upgrades, but its success now hinges on swift, effective implementation. Any delay now risks stalling the market as households wait to see what the Plan delivers.

To maintain momentum, the government must move quickly to progress and legislate the consultations highlighted in the Plan – including the Future Homes Standard, EPC reform, and introducing energy efficiency standards for social housing – and ensure that the zero- and low-interest loans are available to consumers as soon as possible.