Landlords across England are being advised to review and potentially upgrade outdated heating systems in their rental properties ahead of significant changes to Energy Performance Certificate (EPC) assessments. The government is introducing a new methodology for calculating EPC ratings, known as the Home Energy Model (HEM), which will place greater emphasis on heating efficiency and control, potentially impacting properties with older heating technologies such as traditional storage heaters.
Understanding the Upcoming EPC Changes
The government is set to overhaul the way EPCs are calculated, shifting from the current Standard Assessment Procedure (SAP) to the Home Energy Model (HEM). This new approach aims to provide a more accurate reflection of a property’s energy use by focusing on how efficiently it is heated, rather than primarily on running costs. The HEM will assess factors such as heating system responsiveness, temperature control, and the building fabric, alongside recognising the role of modern heating controls and smart technologies.
For landlords, this means that properties which have not upgraded their heating systems may see a change in their EPC rating even if no other physical improvements have been made. The new model is expected to come into effect next year, signalling a shift in how energy efficiency is measured and enforced within the private rented sector.
The Role of Heating Systems in EPC Ratings
Heating systems are a critical component of EPC assessments, influencing the overall energy efficiency rating of a property. While many landlords have focused on upgrading insulation, windows, and lighting to improve EPC scores, the efficiency and control of heating systems can significantly affect the final rating. Inefficient or poorly controlled heating can negate the benefits of other energy-saving measures.
Currently, rental properties in England must achieve a minimum EPC rating of E to be legally let, with penalties including fines up to £5,000 and restrictions on letting for non-compliance. However, from October 2030, the government plans to raise this minimum requirement to an EPC rating of C or above for all privately rented homes. Presently, fewer than half of these properties meet this standard, indicating substantial work is required to meet future regulations.
Why Older Storage Heaters Pose a Compliance Challenge
Older night storage heaters remain common in many rental properties, especially flats, but they present challenges under the new EPC assessment model. These heaters were originally designed to utilise off-peak electricity tariffs, storing heat overnight for release during the day. However, they often lack precise temperature control, release heat when it is not needed, and may require additional costly daytime boosting.
Moreover, traditional storage heaters are generally incompatible with modern smart controls, which are expected to be factored into the HEM assessments. As a result, properties relying on these outdated systems may struggle to demonstrate energy efficiency, even if other improvements have been made, potentially lowering their EPC rating and risking non-compliance.
Benefits of Upgrading to Modern Heating Solutions
Landlords should consider upgrading to modern high heat retention (HHR) storage heaters or electric radiators to improve heating efficiency and control. HHR heaters store and release heat more effectively throughout the day and offer enhanced temperature regulation compared to older models. This improved responsiveness aligns better with the criteria expected under the Home Energy Model.
Alternatively, modern electric radiators provide heat on demand rather than storing it in advance. These systems typically include thermostats and can be controlled room by room, allowing tenants to tailor heating to actual usage patterns. Their compatibility with smart controls further supports compliance with evolving EPC requirements and can contribute to better energy management within the property.
What This Means for Landlords
Although the EPC C requirement will not be mandatory until 2030, landlords are advised to act proactively to avoid future compliance issues. Upgrading heating systems ahead of the new EPC calculation method can help secure a property’s energy rating for the duration of the current certificate, which generally lasts up to ten years.
Delaying improvements until the deadline may result in increased costs and complexity, especially as enforcement is expected to tighten. For landlords with electrically heated properties, reviewing and modernising heating systems now could prevent unexpected shortfalls in EPC ratings and spread the investment required over a longer period.
What TLA Members Should Consider
- Conduct an audit of heating systems in rental properties, focusing on identifying outdated storage heaters or inefficient electric heating.
- Explore options for upgrading to modern high heat retention storage heaters or electric radiators with smart control capabilities.
- Plan heating system upgrades in advance of the new EPC methodology implementation to maximise compliance and cost-effectiveness.
- Stay informed about evolving EPC regulations and enforcement practices to anticipate future landlord responsibilities.
- Consult with qualified energy assessors or property professionals to understand the specific impact of heating systems on EPC ratings under the Home Energy Model.
- Consider tenant communication strategies to explain any heating system changes and how they may affect energy use and comfort.
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