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Experts slam Government's new-build solar panels initiative as "CHAOS"

ended 17. June 2025

EXPERTS have slammed Energy Secretary Ed Milliband's initiative for new-build properties to be required to have mandatory solar panels as “chaos” and said it could make selling your home “mission impossible”.

While the initiative is designed to save homeowners money on their energy bills, financial experts fear any savings will be lost on higher mortgage costs and fees, as well as legal costs. 

Issues with lenders could arise if there is any finance or if the panels are leased and owned by a third party, they fear. 

There will also be additional requirements for checking ownership and maintenance requirements, adding both time and cost to transactions that already take too long.

Ranald Mitchell, Director at Charwin Mortgages, said that while it may sound like a green win, “there’s a catch”. 

He told Newspage: "From a mortgage perspective, rented panels and the airspace leases that come with them often create serious complications. These agreements typically include title restrictions on disposition, meaning you may need the solar provider’s permission just to sell or remortgage your home. 

"That’s a red flag for many lenders, some of whom flat-out refuse to lend on properties with such arrangements. Owned panels? No problem. They’re seen as an asset, boosting energy performance and EPC ratings. But leased systems? That’s where the sun stops shining. 

"Unless the lease can be adopted by the new buyer on identical terms, selling the home can quickly become mission impossible, or at least one with significant contractual penalties to the seller. If the government wants to make solar the standard, it must ensure these arrangements don’t block access to finance."

Chris Barry, Director at Thomas Legal, said it would add a layer of complication no one needed.

He continued: "Lawyers typically raise around five additional enquiries when a property includes solar panels, and that additional work usually comes at an extra cost. 

“The additional enquiries will include checking the quality of the warranty, property planning permissions and the ownership structure. The theory around solar panels on new builds may be great but the practice slightly tricker.”

Justin Moy, Managing Director at EHF Mortgages, said any savings made to the homeowner would no doubt be wiped out by other costs.

He added: "Such initiatives should be applauded, providing cheaper and greener energy to new properties. However, as ever the small print will matter. There may be issues if the scheme to be adopted means the government, developer or a management company owns the panels, creating sub-lease arrangements that many mortgage lenders will struggle with. 

“Saving £500 a year will easily be wiped out with higher mortgage rates and additional fees for the upkeep and maintenance, along with the additional costs associated with additional legal checks, certainly when buying and selling. It will be easy to pay more than £500 per annum in all these extra costs, potentially negating the spirit of the scheme.”

Harry Goodliffe, Director at HTG Mortgages, said the move could cause “chaos”.

He continued: "The intention to make homes greener is great, but yet again, the government is dropping a new initiative without ironing out the practicalities. If solar panels are leased or third-party owned, it can cause chaos with lenders and slow everything down, more legal costs, more hoops to jump through, and potentially higher mortgage rates if lenders treat these homes as higher risk. 

“It’s a classic case of good idea, bad execution. Without clear guidance from lenders and proper planning, this risks turning into another well-meaning mess."

Kundan Bhaduri, Entrepreneur at The Kushman Group, agreed that the move will lead to “headaches”.

He added: "Ed Miliband’s latest crusade to plaster solar panels on every new build is exactly the sort of box-ticking eco-policy that sounds clever in a press release but creates chaos on the ground. As a developer, I can tell you firsthand that lenders already treat properties with solar panels, especially leased ones with deep suspicion. 

"The moment panels are owned by a third party, you introduce sub-leases, title complications and solicitor red flags, all of which slow down transactions and inflate legal costs. Add the extra burden of proving maintenance plans and ownership rights, and buyers are left wondering if saving fifty pounds a month on electricity is worth thousands in headaches. 

“The policy might win applause from climate activists, but in practice, it makes homes harder to finance, longer to complete and more expensive to buy. This is not a green revolution. This is another Miliband masterstroke that manages to punish both builders and buyers in one solar-powered swoop.”

David Stirling, Director at Mint Mortgages & Protection, said it was “a great Green initiative in theory, but potentially major complications in reality”.

He added: "While Ed Milliband's goal is clearly pushing new builds towards net-zero, there are lots of red flags to consider when it comes to lenders and conveyancing. 

“With the possibility of increased legal complexity and cost, there needs to be more guidance and standardisation in place, to ensure the good doesn't become the bad.”

8 responses from the Newspage community

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Editor
Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
The government’s solar mandate on new homes sounds like a green win, but there’s a catch. From a mortgage perspective, rented panels and the airspace leases that come with them often create serious complications. These agreements typically include title restrictions on disposition, meaning you may need the solar provider’s permission just to sell or remortgage your home. That’s a red flag for many lenders, some of whom flat-out refuse to lend on properties with such arrangements. Owned panels? No problem. They’re seen as an asset, boosting energy performance and EPC ratings. But leased systems? That’s where the sun stops shining. Unless the lease can be adopted by the new buyer on identical terms, selling the home can quickly become mission impossible, or at least one with significant contractual penalties to the seller. If the government wants to make solar the standard, it must ensure these arrangements don’t block access to finance.
Star Quote
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Editor
Chris Barry
Director at Thomas Legal
Lawyers typically raise around five additional enquiries when a property includes solar panels, and that additional work usually comes at an extra cost. The additional enquiries will include checking the quality of the warranty, property planning permissions and the ownership structure. The theory around solar panels on new builds may be great but the practice slightly tricker.
Star Quote
Copy

Editor
Justin Moy
Managing Director at EHF Mortgages
Such initiatives should be applauded, providing cheaper and greener energy to new properties. However, as ever the small print will matter. There may be issues if the scheme to be adopted means the government, developer or a management company owns the panels, creating sub-lease arrangements that many mortgage lenders will struggle with. Saving £500 a year will easily be wiped out with higher mortgage rates and additional fees for the upkeep and maintenance, along with the additional costs associated with additional legal checks, certainly when buying and selling. It will be easy to pay more than £500pa in all these extra costs, potentially negating the spirit of the scheme.
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Editor
Michelle Lawson
Director at Lawson Financial
This policy does make sense as properties can be constructed and set up in the best and most efficient way to benefit from solar power. Trying to modernise older property can cause the headaches. Most lenders are OK with solar panels as long as sole ownership can be proven. The only issues are when the panels are leased as the roof space is the concern from an ownership perspective but there are less of these now due to the complications caused. Any energy efficient improvements are usually quite costly against the savings made and it takes a while to break even. Buying a property with this already implemented alleviates that.
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Editor
Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
The government's initiative for mandatory solar panels in new builds should be welcomed as a way of improving the green credentials of homes. But it does raise important questions around mortgage lending. While accepting solar panels can offer benefits for buyers, the varying ownership structures complicate lenders' policies. Lenders prefer the panels to be owned rather than leased, and the latter can cause headaches for homeowners if they have such an arrangement. Any benefits from this scheme could be erased if homeowners end up renting panels that could cause issues if they look to move in the future. The government needs to consider this scheme properly to ensure its good intentions don't lead to unintended consequences.
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Editor
Harry Goodliffe
Director at HTG Mortgages
The intention to make homes greener is great, but yet again, the government is dropping a new initiative without ironing out the practicalities. If solar panels are leased or third-party owned, it can cause chaos with lenders and slow everything down, more legal costs, more hoops to jump through, and potentially higher mortgage rates if lenders treat these homes as higher risk. It’s a classic case of good idea, bad execution. Without clear guidance from lenders and proper planning, this risks turning into another well-meaning mess.
Copy

Editor
David Stirling
Independent Financial Adviser at Mint Wealth
A great Green initiative in theory, but potentially major complications in reality. While Ed Milliband's goal is clearly pushing new builds towards net-zero, there are lots of red flags to consider when it comes to lenders and conveyancing. With the possibility of increased legal complexity and cost, there needs to be more guidance and standardisation in place, to ensure the good doesn't become the bad.
Copy

Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Ed Miliband’s latest crusade to plaster solar panels on every new build is exactly the sort of box-ticking eco-policy that sounds clever in a press release but creates chaos on the ground. As a developer, I can tell you firsthand that lenders already treat properties with solar panels, especially leased ones with deep suspicion. The moment panels are owned by a third party, you introduce sub-leases, title complications and solicitor red flags, all of which slow down transactions and inflate legal costs. Add the extra burden of proving maintenance plans and ownership rights, and buyers are left wondering if saving fifty pounds a month on electricity is worth thousands in headaches. The policy might win applause from climate activists, but in practice, it makes homes harder to finance, longer to complete and more expensive to buy. This is not a green revolution. This is another Miliband masterstroke that manages to punish both builders and buyers in one solar-powered swoop.