Future-proofing rental homes in Wales: Rules, funding and timelines

Wales is preparing for major reforms to minimum energy efficiency standards, with new requirements expected to reshape the private rented sector. With a range of Welsh Government grants and support schemes available, now is the time for landlords to start planning upgrades.  Public affairs officer Mia Rotaru explores what landlords in Wales need to know and how to access funding. 

New rules on how EPCs are caluculated are on their way, potentially leading to some properties seeing their scores decrease. The new system is likely to be more complex and may incur higher compliance costs, especially for older or more challenging buildings. 

As these changes approach, you should begin planning how to future-proof your properties.

Whether you plan to achieve an EPC C rating now and secure compliance for the next decade, wait for the new assessment methodology, or explore potential exemptions to keep your property on the market, it is important to consider how available grants could help smooth the transition.

Why does acting early matter?

Expenditure on energy efficiency improvements from October 2025 onwards will count towards the Government’s £10,000 cost cap. This means that work carried out now could contribute towards demonstrating compliance in the future. 

The Government has also confirmed that grants will continue to be available and can count towards the cost cap, providing landlords with a valuable opportunity to offset retrofit costs. For those planning longer-term upgrades, this could significantly reduce the financial burden of meeting the EPC C requirement. 

Grants available in Wales

There are a number of grants available for people with properties in Wales.These include:

1. Boiler Upgrade Scheme (BUS) 

If you are thinking about replacing an existing gas, oil or electric boiler with a heat pump or biomass boiler, you could receive £7,500 towards the installation cost. This is how it works: 

• You must own the property.

• Some properties may need insulation installed before heating upgrades can proceed; your installer will advise. 

• You do not apply directly; your MCS-certified installer applies on your behalf, so choosing a certified installer is essential. 

As the Government is looking at moving away from the fossil-fuel system, and heat pumps will play a big role in the upcoming metrics, BUS might be the scheme that could cover your costs of installing the heat pumps. 

2. The Welsh Government's ‘Nest’ scheme 

The Nest scheme provides free advice and support to help improve the energy efficiency of homes in Wales. For eligible households, it can also fund free energy-efficiency measures, such as insulation, solar panels, or heat pumps, to help reduce energy bills. 

To qualify, you must: 

• Privately rent a property with an EPC rating of D or below or

• Your tenants must be on a low income or receiving a means-tested benefit.  

To check your eligibility or to apply, you can get in touch with Nest for free. If eligible, an assessor will visit your home to collect more details, helping to create a personalised support package for you and your residence.

What is coming next?

The British Government has aconfirmed that it is collaborating with financial institutions to develop long-term green finance options, but while those are still in the works, you can start planning your retrofit journey early.  

Taking proactive steps now can make achieving an EPC C rating more manageable, safeguard your investments, and improve tenants' living conditions by providing warmer, more cost-effective homes. 

• For more information about the proposed changes and the latest government announcements on the Warm Homes plan, the EPC, and MEES, click here.   

• The NRLA’s award-winning Training Academy runs an energy efficiency course giving you all you need to know on energy efficiency and how to access funding. Click here for more information and to book.   

• NRLA partner Domna is a one stop shop, when it comes to helping you improve your properties Energy Performance Certificate (EPC) ratings. For more information click here.    

• Part of the NRLA family, Safe2 is a one-stop-shop for all things compliance, allowing you to organise inspections and order safety certificates, including EPCs, at the click of a button. For more information click here.