Welsh MPs have raised concerns that the EPC C energy-efficiency targets for private rented homes could increase rents, as landlords face significant upgrade costs. The government requires all private rented properties in England and Wales to meet EPC C standards by 2030, but the financial burden on landlords may be passed on to tenants.
Concerns over rising rents due to EPC C upgrade costs
The UK government has mandated that all private rented homes in England and Wales achieve an Energy Performance Certificate (EPC) rating of C by 2030. However, the cost of making these energy-efficiency improvements has caused apprehension among landlords and tenants alike.
Leticia Gonzalez, Plaid Cymru MP, questioned the Welsh government about the impact of these requirements, highlighting that the Warm Homes programme includes the mandatory EPC C target for all private rented homes by 2030. She warned that the additional costs could be passed on to tenants through higher rents.
Gonzalez also noted that reductions in the cost cap available to landlords for necessary upgrades raise doubts about the practical deliverability of these standards within the Welsh private rented sector. She urged the Welsh government to work with the UK Government to clarify how landlords are expected to fund these improvements without increasing rents for tenants.
Welsh government acknowledges landlord cost concerns
Siân Gwenllian, Welsh Local Government, Housing and Planning Secretary, acknowledged the concerns regarding costs for landlords and the potential impact on tenants. She emphasised the importance of improving energy efficiency to reduce energy bills and tackle fuel poverty but stressed that the approach must be practical.
Gwenllian confirmed she had recently met with the UK Government’s Minister for Energy Users to discuss support for achieving the EPC C target by 2030. She highlighted that many landlords in Wales are not professional landlords and expressed a desire to help them understand their obligations under the new standards.
Landlords may sell properties rather than retrofit
The National Residential Landlords Association (NRLA) has previously warned that many landlords might find the cost of retrofitting properties to EPC C standards prohibitive and may choose to sell instead. Chris Norris, NRLA chief policy officer, stated that while energy efficiency is important, it is not feasible for every property to meet EPC C within the proposed timeframe.
Norris pointed out that the proposals do not sufficiently consider the age and condition of housing stock, the complexity of required works, or the shortage of skilled tradespeople. He warned that this could reduce the supply of rental properties, worsening the existing housing supply crisis.
He called on ministers to develop a targeted support programme to encourage investment in energy-efficiency improvements, echoing recommendations from the Committee on Fuel Poverty and Citizens Advice.
Supporting landlords through regulatory changes
As landlords face increasing regulatory demands, staying organised and informed is essential. TLA membership offers access to practical compliance resources and guidance tailored to the evolving private rented sector.
TLA is currently BETA testing ORBIT™, a new property management and compliance platform designed to help landlords and letting agents organise their properties, manage important documents, and keep track of compliance activity. ORBIT™ aims to bring property information and TLA support together in one accessible system.
Through membership, landlords can explore resources that assist with understanding and preparing for new energy-efficiency requirements. This support can be valuable in managing the challenges posed by EPC C targets and related upgrade costs.
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