UK landlords are being advised to assess and potentially upgrade their heating systems ahead of significant changes to Energy Performance Certificate (EPC) assessments. These reforms, which will place greater emphasis on heating efficiency, could impact compliance requirements and costs for rental properties, particularly those with older heating technologies.
Government plans to revise EPC assessment methodology
The government is set to overhaul the EPC framework by introducing the Home Energy Model (HEM), a new approach that will shift the focus from simply evaluating running costs to a more detailed analysis of a property’s heating system efficiency. This change aims to provide a more accurate reflection of a home’s energy performance and environmental impact.
Under the HEM, the efficiency of heating installations will carry more weight in the overall EPC rating. This means that properties with outdated or inefficient heating systems may see their EPC ratings decline, even if other energy-saving measures, such as improved insulation or double glazing, have been implemented.
Current EPC standards and the 2030 target for private rented properties
At present, less than half of rental properties in the UK meet the government’s target of an EPC rating of C or above. The government has proposed that all private rented sector (PRS) properties achieve at least EPC C by 2030, a target designed to improve energy efficiency and reduce carbon emissions across the housing stock.
This target presents a considerable challenge for landlords, especially those managing properties with older heating systems like traditional night storage heaters. These systems often struggle to meet modern efficiency standards and may not align well with current tenant usage patterns, potentially jeopardising compliance with future regulations.
Challenges posed by older heating systems in rental properties
Many rental properties, particularly flats, continue to rely on legacy heating solutions such as night storage heaters. Originally designed to utilise off-peak electricity tariffs, these heaters typically release heat at fixed times, which may not correspond with tenants’ actual heating needs. This can lead to inefficient energy use and higher costs.
Older storage heaters also tend to lack precise temperature controls and often require supplementary daytime heating, which can be expensive and inefficient. Furthermore, they are generally incompatible with smart heating controls, a feature expected to be recognised positively under the new HEM-based EPC assessments.
Recommended upgrades to improve heating efficiency
Landlords are encouraged to consider replacing outdated storage heaters with modern alternatives such as high heat retention (HHR) storage heaters or electric radiators. HHR heaters are designed to store and release heat more effectively throughout the day, reducing waste and improving comfort.
Electric radiators offer enhanced control through thermostats and the ability to schedule heating on a room-by-room basis. These systems can often integrate with smart controls, which may contribute favourably to EPC ratings under the new assessment model. Early upgrades can help landlords meet compliance requirements ahead of the 2030 deadline and potentially reduce ongoing energy costs.
Preparing for tighter enforcement and evolving compliance requirements
As enforcement of EPC standards is expected to become more stringent, landlords who delay upgrading their heating systems may face increased costs and complexity in meeting future regulations. Completing improvements now can secure compliance for the duration of the current EPC, which typically lasts up to ten years.
Reviewing heating systems proactively allows landlords to spread the cost of upgrades over time and avoid last-minute pressures. This approach also helps mitigate the risk of unexpected shortfalls when EPCs are reassessed under the new Home Energy Model.
What this means for landlords
Landlords should consider conducting a thorough review of their properties’ heating systems, especially if they rely on older storage heaters. Understanding the potential impact of the EPC reforms on their rental portfolio is essential to planning cost-effective improvements and maintaining compliance.
Letting agents and property managers may also need to advise landlords on the implications of the new EPC assessment criteria and support them in identifying suitable heating upgrades. Early action can help avoid enforcement issues and ensure rental properties remain attractive and energy efficient for tenants.
What TLA members should consider
- Assess the current heating systems in rental properties, focusing on the efficiency and control capabilities of existing installations.
- Investigate options for upgrading to modern high heat retention storage heaters or electric radiators that support smart controls.
- Plan heating system upgrades well in advance of the 2030 EPC C compliance deadline to manage costs and avoid last-minute pressures.
- Stay informed about government updates to EPC regulations and the introduction of the Home Energy Model to understand compliance implications.
- Engage with qualified heating and energy efficiency professionals to ensure any upgrades meet current and anticipated standards.
- Utilise resources and training available through membership organisations such as the TLA to remain compliant and well-prepared.
TLA Training Academy
The Landlord Association provides structured guidance, compliance education and practical support for landlords, letting agents and property professionals. Members can access training and resources designed to help them stay organised, informed and prepared.
Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/
Those looking to join and access member support can register here: https://landlordassociation.org.uk/get-started-with-the-landlord-association/
TLA update
The Landlord Association is continuing to expand its support, resources and partner network for landlords, tenants, agents and property professionals across the UK. Service providers interested in working with TLA can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/
Source: www.property118.com
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