Its aim is to retrofit 20,000 homes over five years using a zero-upfront-cost model funded through a mix of public and private investment worth around £400 million

Proposed London Net Zero Neighbourhood (NZN) programme is to provide much-needed relief for landlords struggling with the cost of meeting stricter energy-efficiency standards.

It is the brainchild of London Councils, the cross-party body that represents all 32 of the capital’s boroughs plus the City of London. Its aim is to retrofit 20,000 homes over five years using a zero-upfront-cost model funded through a mix of public and private investment worth around £400 million.

The work would be financed externally, with costs expected to be recovered over time through energy bill savings rather than direct payments from owners.

And it will cover homes “across all tenures”, including those that are privately rented and will focus on insulation, clean-heat systems and other retrofit measures that lower emissions and energy bills.

Brenda Dacres OBE, London Councils’ Executive Member for Transport and Environment, said the initiative shows a clear path to retrofit that is fair, affordable and delivered in partnership with our communities – with no upfront cost.

NZN is still at the proposal stage, with London Councils seeking Government support before any rollout begins. However, its potential impact for landlords is significant. Government data suggests around 55% of privately rented homes in England currently fall below EPC C, which will become the minimum standard around 2030. Bringing the average property up to that level is estimated to cost between £6,000 and £15,000, depending on its age and type.

Ben Beadle, Chief Executive of the National Residential Landlords Association, has warned that while most landlords want to make their properties more energy efficient, the cost of improvements and inconsistent policy support remain major barriers. And he has called for new funding models that reduce or share that burden to prevent landlords from leaving the sector.

If the retrofit proposal secures funding and is fully accessible to landlords, it could become the first large-scale programme to help them bring their rental properties up to standard.