Landlords are facing a ticking clock to upgrade their properties' heating systems, with experts warning that failure to act could result in significant costs under proposed reforms to Energy Performance Certificates (EPCs). A new methodology, known as the Home Energy Model (HEM), will shift focus from running costs to overall efficiency, potentially penalising homes with outdated heating infrastructure.
Under 48% of private rental properties in England and Wales currently meet the EPC C standard, prompting government proposals for all rented homes to achieve an EPC C rating by 2030. While insulation and glazing upgrades may be welcomed, inefficient or poorly controlled heating systems can undo this work entirely, according to energy efficiency expert Ben Rawson.
Many rental flats still rely on older night storage heaters, which struggle with limited temperature control and require costly daytime 'boost' functions. These outdated systems lack compatibility with smart controls, which are set to be positively recognised under the new assessment model. To prepare for these changes, landlords are advised to consider upgrading to modern high heat retention (HHR) storage heaters or electric radiators, both of which can integrate with smart controls and potentially improve a property's EPC rating.
Upgrading now could enable landlords to secure compliance for the lifespan of their current EPC – typically up to ten years – and spread the financial burden over several years. With significant reforms on the horizon, landlords would do well to take proactive steps to avoid increased costs and complexity in the future.