Nearly 6.1 million households in the UK are currently living in fuel poverty, according to National Energy Action (NEA). That figure alone tells you why energy efficiency has moved from a nice-to-have to a must-check when buying an apartment. If you pick the wrong property, you could be locking yourself into years of high bills and cold rooms.
I’ve been writing about UK property for years, and the one question that keeps coming up from apartment buyers is: how do I know if a flat will be expensive to heat? The answer is rarely obvious from a quick viewing. You need to look at the Energy Performance Certificate, check what heating system is installed, and understand what grants or loans might be available to help you upgrade. The government’s Warm Homes Plan, launched in January 2026, is the biggest public investment in home energy upgrades in British history — £15 billion to improve up to 5 million homes by 2030. That changes the calculation for buyers. Here’s what you actually need to know.
What the Warm Homes Plan means for apartment buyers
The most important thing to understand is that the Warm Homes Plan isn’t just about grants. It’s a structural shift in how the government expects homes to perform. The plan aims to lift one million families out of fuel poverty by 2030 and retrofit 5 million homes. For apartment buyers, that means properties with poor energy ratings are going to become increasingly expensive to run — and harder to sell.
What I’d do before viewing any apartment is pull the EPC from the online register. If it’s rated D or below, you’re looking at a property that will cost more to heat and may need significant upgrades. But here’s the nuance: a low EPC can also be an opportunity. The Warm Homes: Local Grant offers up to £30,000 for improvements on properties rated D to G, targeting households with an income of £36,000 or less. If you qualify, you could get insulation, a heat pump, and even solar panels installed for free. That’s a different financial picture than paying full price for a already-efficient flat.
Why energy efficiency affects your monthly costs and resale value
Domestic dwellings contribute around 13% of the UK’s greenhouse gas emissions, according to the English Housing Survey 2023–2024. That’s a big number, but what does it mean for you? It means the government has a strong incentive to make older, inefficient homes more expensive to run through regulation. The Future Homes Standard, expected in early 2026, will require all new homes to include solar panels and low-carbon heating as standard. Existing homes won’t be exempt forever.
Consider this scenario: you buy a ground-floor apartment with an EPC rating of E. It has single-glazed windows, no loft insulation, and an old gas boiler. Your annual heating bill might be £1,800. A neighbour in a similar flat that’s been upgraded to a C rating might pay £900. Over five years, that’s a £4,500 difference. And when you come to sell, buyers will factor those running costs into their offer.
What I notice is that buyers often focus on the purchase price and ignore the running costs. A cheap flat with terrible insulation is rarely a bargain. The government estimates that 29 million homes need retrofitting to achieve Net Zero by 2050. If your apartment is one of them, you’ll either pay for upgrades yourself or absorb higher energy bills until you do.
Where apartment buyers get tripped up on green energy
I’ve seen the same mistakes come up again and again. Here are the ones that cost buyers the most.
Assuming a modern build means good efficiency
Not all new-build apartments are created equal. Some developers cut corners on insulation and glazing to keep costs down. Always check the EPC regardless of the build year. A flat built in 2015 could still have a C rating, while a 2020 build might hit a B. The difference matters. If you’re looking at a newer apartment, ask for the EPC before you view — it’s a legal requirement for sellers to provide it.
Ignoring the heating system type
Electric storage heaters are common in apartments, and they’re expensive to run. If the property has them, factor in the cost of switching to a heat pump or upgrading to smart heating controls. The Boiler Upgrade Scheme offers £7,500 for air-source heat pumps, but you’ll need outdoor space for the unit. Some apartments have balconies or communal gardens that work. Others don’t. Check before you commit.
Overlooking the service charge implications
Leasehold apartments often have a service charge that covers communal heating, lighting, and maintenance. If the freeholder is required to upgrade the building’s insulation or heating system under new rules, that cost could be passed to you. On the other hand, a well-managed block that invests in solar panels or a communal heat pump could see lower service charges over time. Ask the seller or managing agent for the last three years of service charge accounts and look for any planned major works.
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| Heating system | Typical annual cost (2-bed flat) | Grant available |
|---|---|---|
| Old gas boiler (G-rated) | £1,600–£2,200 | None directly |
| Electric storage heaters | £1,800–£2,500 | Up to £7,500 for heat pump |
| Modern gas boiler (A-rated) | £900–£1,300 | None directly |
| Air-source heat pump | £700–£1,100 | £7,500 (Boiler Upgrade Scheme) |
Not checking the one-metre rule for heat pumps
Until recently, heat pumps had to be installed at least one metre from the property boundary. That rule has been removed under the Warm Homes Plan, and the maximum unit size has increased from 0.6m³ to 1.5m³. Multiple heat pumps are now allowed in detached homes. For apartment buyers, this matters if you have a balcony or small outdoor area — you may now be able to install a heat pump where you couldn’t before. Check with an MCS-certified installer before you rule out a property.
How to choose an apartment with green energy in mind
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Start with the EPC and work backwards
Your first move should be to check the EPC online. If the rating is D or below, you may qualify for the Warm Homes: Local Grant — up to £30,000 for insulation, heat pumps, and solar panels. The grant is means-tested: your household income must be £36,000 or less, and the property must be privately owned or rented. You apply through your local council, and they typically respond within 10 working days to arrange a home survey. If you don’t qualify for the grant, the government’s low-interest loan scheme — backed by £2 billion — will be available later in 2026. That’s worth keeping on your radar.
Look for solar-ready apartments
The government wants to triple the number of homes with rooftop solar by 2030. If you’re buying a top-floor apartment with roof access, or a ground-floor flat with a garden, solar panels could be a realistic option. The fully funded packages for low-income households include solar panels with battery storage, worth £9,000 to £12,000. Even if you don’t qualify for full funding, the low-interest loans will cover solar panels and batteries. A smart leak detector like the X-Sense Wi-Fi Water Leak Detector can also help you monitor for issues that could waste energy and water.
Check the landlord upgrade requirements
New rules will require landlords — including freeholders of leasehold blocks — to invest in energy efficiency upgrades. An estimated 500,000 families in rented accommodation could be lifted out of fuel poverty by 2030 as a result. If you’re buying a leasehold apartment, ask the seller whether the freeholder has any planned upgrades. If they do, your service charge might go up in the short term, but your energy bills could drop significantly. If they don’t, you may want to factor in the cost of pushing for upgrades through the residents’ association.
Plan for the Future Homes Standard
The Future Homes Standard, expected in early 2026, will require all new homes to include solar panels and low-carbon heating as standard. If you’re buying a new-build apartment, check that it meets this standard. If it doesn’t, you could be buying a property that’s already behind the regulatory curve. For existing apartments, the standard signals what buyers will expect in a few years. Properties with poor energy ratings will become harder to sell, and lenders may start offering better mortgage rates for energy-efficient homes.
- 1Check the EPC onlineVisit the government EPC register and enter the property postcode. If the rating is D or below, you may qualify for grants. If it’s C or above, you’re in a good position.
- 2Ask about the heating systemFind out what type of heating is installed and when it was last serviced. If it’s electric storage heaters or an old boiler, budget for a replacement. Check if a heat pump is feasible.
- 3Review the service chargeAsk for the last three years of service charge accounts. Look for planned major works related to insulation, heating, or solar panels. Factor those costs into your budget.
- 4Check grant eligibilityIf your income is £36,000 or less and the EPC is D to G, apply for the Warm Homes: Local Grant through your local council. Call 0800 098 7950 for help with the application.
Frequently asked questions about green energy and apartment buying
Can I get a heat pump in a flat with no garden? ▾
What if my apartment has a shared heating system? ▾
Do solar panels work on apartment buildings? ▾
Will a poor EPC affect my mortgage? ▾
What’s the difference between the Boiler Upgrade Scheme and the Warm Homes: Local Grant? ▾
Can I apply for grants if I’m buying a shared ownership apartment? ▾
Your next move on green energy and apartment buying
The Warm Homes Plan changes the landscape for apartment buyers. Properties with poor energy ratings are no longer just uncomfortable — they’re a financial liability. But with £15 billion in funding, £7,500 heat pump grants, and up to £30,000 for low-income households, there’s never been a better time to buy a flat that needs work. My advice: check the EPC before you view, ask about the heating system, and find out what grants you qualify for. That one hour of research could save you thousands.
If this was useful, you might also want to read Essential tips for buying an apartment with good insulation in the UK.
Sources and Further Reading
Apartment buying in the UK: is it really cheaper than a house? — A practical comparison of the true costs of apartment living versus a house, including energy efficiency considerations.
Warm Homes Plan 2026: grants, loans, and energy upgrades explained. Kilowatts, 2026.
Warm Homes Plan 2026: what you need to know. Green Green Energy, 2026.
