Ask Gill: What do I need to know about EPCs in Wales?

As a landlord and regional engagement officer in Wales Gill Owens has decades of experience of the private rented sector. In last month’s mailing we followed Gill on her whistle-stop tour of Wales updating you on all the latest legislation impacting the sector.

This month she answers just some of the questions she’s been asked on the new Minimum Energy Efficiency Standards (MEES) to be brought in across England and Wales meaning that, from 2030 all privately rented properties must have an EPC of C or above, or have a valid exemption, to be legally let out. 

Q: Why is reaching EPC C going to be so difficult for landlords in Wales?

A: Those of us in the private rented sector in Wales are well aware that the housing stock is the oldest in the UK. As a result, getting it up to the new EPC C level will be costly for some landlords.

The average rating for Welsh rental properties at present is an EPC D, with 60% of the country’s 213,000 rental properties needing improvement.

Q: I can’t afford expensive works, what have you done to reduce the cost?

The NRLA has successfully campaigned to have the proposed cost cap reduced from £15,000 to £10,000 per property – with the cost reduced proportionately for homes valued at under £100,000.

While this is a positive step, we are continuing to campaign for a comprehensive funding package to support landlords to make improvements – and to ensure the new targets are achievable in the proposed timescales. You can read more about our campaign here.

Q: My property has an EPC of C now, but I know the Government wants to change the rules when it comes to how they are calculated. Could this be downgraded?

The Government is planning to change the way that EPCs are calculated and is proposing the introduction of the Home Energy Model (HEM) to do this.

HEM will use different metrics to come up with your EPC rating, which could change its band.

It is important therefore that if you have a rating of C or above you think about your next steps. EPCs now last for 10 years, so depending on when you had your last inspection it might be worth having another to lock your rating in for the next decade.

It is proposed the HEM is introduced 1 October 2029, after which it will be the only methodology that will be used for new EPCs. That's the main reason many landlords are looking at improvements now rather than waiting

Q: What will the new Home Energy Model (HEM) look like – and will it be harder to reach a C rating?

The new system moves away from focussing on a single energy cost metric and instead assesses different aspects of a property's performance, such as its fabric performance – how well the building itself retains heat as well as its heating system and smart readiness. Under current proposals landlords will be expected to make fabric improvements first – that is improving things like insulation and double or triple glazing – before choosing between making improvements in one of the other areas. The ‘heating systems’ metric will look at the efficiency of the heating and hot water system and ‘smart readiness’, so things like whether the property has solar panels, smart controls and EV charging.

The Government is still finalising plans so keep an eye on our news site and social media channels for more. We will continue to campaign on this issue ahead of the introduction of the new rules.

More information

• For more on what approach the new PM Andy Burnham and his team might take click here.
• If you would like to ask Gill A question about anything to do with the private rented sector in Wales, why not write to her [email protected]