In Summary
- Energy bills get short-term relief: the electricity VAT cut runs to July 2027, a £100 Household Energy Payment arrives from January 2027, and gas standing charges will be abolished from 2027. Tenants under financial pressure may still under-heat and under-ventilate this winter.
- Social housing is set to grow: an extra £1.5bn for around 10,000 homes takes investment to more than £40bn over 10 years. More homes means more stock covered by Awaab’s Law.
- Supported housing will be licensed against national standards from 2027-28.
- Awaab’s Law is one year old in social housing, and Phase 2 starts on 30 November 2026. A consultation on extending it to private landlords closes on 18 December 2026.
- Higher tax on rental income from April 2027 makes catching damp early, before it becomes costly, even more important.
John Healey delivered his first Budget as Chancellor one day after Awaab’s Law turned one, and a month before Phase 2 comes into force on 30 November. It eases household energy bills and commits to the biggest council housebuilding drive since the post-war era. The standards landlords have to meet keep rising all the same.
This is what the Budget changes for landlords, housing associations and property managers, and why data is becoming central to housing compliance.
Energy: relief now, reform later
The Budget describes its energy package as “a shift in the government’s approach to energy”. Some of it helps this winter. Most of it lands in 2027 or later.
Immediate support:
- The VAT cut on electricity is extended to July 2027, expected to take around £50 off the annual Ofgem price cap from April 2027.
- A £2.6bn Household Energy Payment will put £100 into the bank accounts of households in council tax bands A to D in England from January 2027, supporting up to 20 million households.
- Import tariffs on kerosene are being cut, helping off-grid households that rely on heating oil.
Longer-term reform:
- Gas standing charges will be abolished from 2027, with targeted mitigations.
- A new Energy Debt Circuit Breaker aims to tackle energy debt, saving all billpayers around £30 by 2030.
- Electricity standing charges will be reformed, with details next year.
- No new policy costs will be added to bills until a Cost Control Framework is in place at the 2027 spending review.
- The planned Gas Shipper Obligation is scrapped, so the government, not billpayers, will fund hydrogen projects.
Why energy costs and mould are linked
When money is tight, many tenants heat their homes less and keep windows closed to hold in the warmth. Warm, moist air from cooking, showering and drying clothes then condenses on cold walls and windows, which creates the conditions for mould.
We welcome the energy support, but most of the structural reform doesn’t land until 2027 or later. A £100 payment does not change the physics of a poorly ventilated flat. This winter, many households will still be choosing between heating and other bills, so landlords should expect condensation-related damp and mould to remain a serious risk.
Social housing is growing, and so is the compliance burden
The Budget commits to a major expansion of social and affordable housing:
- An extra £1.5bn for the Social and Affordable Homes Programme, delivering around 10,000 homes in England and prioritised for Social Rent, especially council homes.
- More than £40bn of total investment in social and affordable housing over 10 years.
- Cheaper borrowing for councils, with the preferential Public Works Loan Board rate extended to 2027-28.
- A new VAT relief on land sold to registered social housing providers.
The government describes this as the start of “the largest council housebuilding programme since the post-war era”, and every new social home will be subject to Awaab’s Law from day one. As councils rebuild their housebuilding capacity, many will also be scaling up their asset management and repairs services. Building monitoring into new and existing stock from the outset is far easier than retrofitting compliance processes later.
Additionally, the government will introduce a licensing regime in 2027-28 to enforce national standards for supported housing in England. Supported housing often houses vulnerable people, who are among the most at risk from damp, mould and poor air quality. Providers should expect licensing standards to look closely at property condition. Having clear, continuous evidence about the condition of your homes will be a strong position to be in.
Awaab’s Law: one year on
Awaab’s Law has applied to social landlords since 27 October 2025. It requires them to:
- Investigate damp and mould hazards within 10 working days.
- Deal with emergency hazards within 24 hours.
Phase 2 is due to take effect on 30 November 2026, subject to parliamentary approval.
The law is named after Awaab Ishak, the two-year-old who died in 2020 after prolonged exposure to mould in his family’s social housing flat in Rochdale.
Awaab’s Law does not yet apply in the private rented sector. The government is consulting on extending it to private landlords, and that consultation closes on 18 December 2026. It will help set the timescale for implementation, and no date has been confirmed.
Private landlords should not wait, because they already have legal duties:
- The Housing Health and Safety Rating System (HHSRS) lists damp and mould growth as a hazard, and councils can use it to take enforcement action.
- Tenants can take landlords to court directly if a home is not fit to live in.
- The Renters’ Rights Act, in force since 1 May 2026, has ended no-fault evictions, giving tenants more confidence to report problems.
Rental income tax: protecting margins
Last year’s Budget announced, and this one confirms, that tax on property income rises from April 2027 to 22% for basic rate, 42% for higher rate and 47% for additional rate taxpayers. With margins under pressure, avoidable costs hurt more. Damp and mould that goes unnoticed can lead to major repairs, longer voids, rent disputes and legal claims. Early detection is almost always cheaper than late remediation.
Building standards and retrofit
The government will not make major changes to building regulations for the rest of this Parliament, except to continue improving building safety, including implementing the Grenfell Inquiry recommendations.
On retrofit, a new Warm Homes loans scheme gives homeowners access to low-interest and interest-free finance for solar panels, batteries and heat pumps. The Budget also notes that some Warm Homes Fund financial transactions will be reallocated to fund the new Your First Home scheme, with the government exploring guarantees instead of loans.
Retrofit improves energy efficiency, but it can also change how a home handles moisture. Better insulation and airtightness without enough ventilation can increase condensation risk. Monitoring before and after retrofit helps landlords make sure improvements don’t create new problems.
Technology and data: the direction of travel
The Budget leans heavily into technology. It commits to harnessing AI to transform public services, introduces new cross-economy powers so firms can test new technologies faster, and requires councils to publish planning documents as open data by the end of 2027. Across government and housing, decisions are moving from guesswork to evidence. Regulators, tribunals and tenants will increasingly expect landlords to show what they knew, when they knew it, and what they did about it.
From reacting to preventing
Damp and mould usually build up out of sight. By the time a tenant reports black mould, the conditions behind it have often been there for weeks.
ResiSure’s Resi-IQ sensors record humidity, temperature and air quality every 30 minutes, so landlords and property managers can:
- Spot the conditions for mould early, before damage appears.
- Prioritise the homes most at risk across a portfolio.
- Work with tenants on heating and ventilation, using real data rather than guesswork.
- Check that retrofit works without creating new moisture problems.
- Keep a clear evidence trail to show they have met their duties under HHSRS, and under Awaab’s Law where it applies.
Get ahead this winter
The Budget offers some relief on energy bills, but the fundamentals have not changed: landlords must keep homes safe, and they increasingly need to prove it.
Talk to ResiSure about how our sensors can help you monitor damp, mould and air quality across your properties this winter.
Frequently Asked Questions
How does the Budget affect damp and mould risk?
Energy support will help, but many tenants will still cut back on heating and ventilation this winter. That can lead to condensation and mould, especially in poorly ventilated homes.
What is changing for supported housing?
The government will introduce a licensing regime in 2027-28 to enforce national standards for supported housing in England.
What energy support did the Budget announce?
The electricity VAT cut is extended to July 2027, a £100 Household Energy Payment will be paid from January 2027 to households in bands A to D in England, and gas standing charges will be abolished from 2027.
About this article
This article was written and published on 28 October 2026, the day of the Autumn Budget. It draws on HM Treasury’s Budget 2026 document, the Chancellor’s Budget speech, announcements on gov.uk, and the regulatory position on Awaab’s Law and the Renters’ Rights Act at the time of writing.
The information is correct at the time of publication. Regulations, timelines and Budget measures may change, particularly the timetable for applying Awaab’s Law to private landlords. This article is general information only and is not legal advice. Landlords and property managers should take professional legal advice on their own compliance duties. If you are a tenant worried about damp or mould affecting your health, contact your landlord and speak to your GP or local council.