NRLA urges Welsh government to provide funding support for landlords to meet EPC C targets

Ahead of the Welsh government’s draft budget 2026-27, the National Residential Landlords Association (NRLA) is calling on the government to support landlords in meeting EPC C targets.

The NRLA warns without funding support to meet energy-efficiency targets, such as low-cost loans, landlords will simply sell up.

The government have proposed, but not yet made law, all private rented properties in England and Wales will need to meet EPC C targets by 2030.

60.5% of private rented homes in Wales currently fall below EPC C

According to the NRLA, 60.5% of private rented homes in Wales currently fall below EPC C, and 43% of Welsh PRS homes were built before 1919, making them harder and more costly to upgrade.

The NRLA is calling on the Welsh government to work with the Development Bank of Wales to provide low-interest retrofit loans to help landlords meet EPC C targets.

The NRLA writes on its website: “This will not only ensure there are enough rental homes to go round, but will also reduce tenants’ energy bills while improving housing quality.

“It also aligns with the Welsh government’s recognition that UK-wide policy shifts must be supported with financial measures.”

Wales has the most restrictive permitted development rights (PDRs) in the UK

The organisation also points out Wales has the most restrictive permitted development rights (PDRs) in the UK which makes it difficult for landlords to install low-carbon upgrades.

PDRs streamline the planning process by allowing certain works to proceed without full planning permission. In England, reforms have already removed restrictions, such as the “one-metre distance rule” for heat pumps, making it easier and faster to install green technologies.

However, this is not the case in Wales and the NRLA warns this is delaying investment and leaving the private rented sector unprepared for energy-efficiency changes.

They call on the Welsh government to implement PDR reforms swiftly, removing unnecessary restrictions and to ensure the planning system supports, not hinders, investment in energy efficiency upgrades.

Reducing supply of homes

Elsewhere, the NRLA is also giving evidence on the Building Safety (Wales) Bill, which is currently before the Senedd.

The bill focuses on improving safety in buildings 11 metres and above, as well as certain HMOs. While the organisation welcomes the bill, it has concerns about how it will work in practice.

The Welsh government estimates the average cost of a fire risk assessment (FRA) at £62 per property. However, research by the NRLA shows this is a severe underestimate, with a full FRA typically costing around £395.

Where assessments identify issues, landlords may face additional upgrades, with estimates running as high as £15,000 per property in some cases.

The NRLA warns on its website that without realistic costing, parts of the HMO sector could become financially unviable, leading to properties exiting the sector and reducing the supply of shared homes.

The organisation also emphasises that fire safety is not solely the responsibility of landlords.

NRLA members report challenges with tenants who obstruct escape routes or ignore fire safety rules. The NRLA says the bill does not provide a straightforward way for landlords to enforce tenant responsibilities and is calling for fire safety duties to be included as a fundamental term of occupation contracts.