What we’re telling the Senedd about new energy rules

The NRLA is calling on the Welsh Government to back the NRLA's minimum energy efficiency campaign, calling for more funding for landlords, and more time for improvement works to be carried out. 

The UK Government is responsible for setting the minimum energy efficiency standards for England and Wales, and has proposed a minimum EPC rating of C for all rented homes. However the Welsh Government can still influence its decisions - and could play a vital role in calling for change. 

We have written to the Senedd’s Local Government and Housing Committee raising concerns over the proposals and have met with Committee Chair John Griffiths MS to outline the challenges, and the potential impact on the supply of rented housing. 

The problem 

While we support the aim of making rented properties as energy efficient as possible, the current plans present significant challenges for landlords. These are some of the issues we are raising, and our clear recommendations for the Welsh Government:  

1. Unrealistic timescales 

Under the proposals, the current proposals new tenancies would need to comply by 2028, and all properties would need to comply by 2030. 

We believe this is unrealistic. We’re calling for a staggered approach: 

• 2030 deadline for fabric improvements (e.g. insulation). 

• 2036 deadline for smart technology and heating system upgrades. 

This would better align with the 10-year EPC renewal cycle, making compliance more manageable for landlords. 

2. Unfair cost cap proposals 

The consultation proposes raising the spending cap from £3,500 to £15,000, or £10,000 for certain exemptions. We believe this risks placing a disproportionate financial burden on landlords in lower-value areas. 

Our recommendation: 

• Introduce a graduated cost cap, linked to property value. 

• Start with a £7,000 threshold, aligning with the Government’s own estimate of typical upgrade costs. 

3. Landlords left out of support schemes 

Most Government funding schemes currently focus on owner-occupiers or social housing, leaving private landlords to foot the bill for improvements. 

We are calling for: 

• Tax reforms to make energy efficiency investments deductible against income tax. 

• A clear list of eligible improvements for tax relief. 

• Consideration by the Welsh Government of using Land Transaction Tax (LTT) incentives, such as rebates or reduced rates, for landlords who improve EPC ratings when purchasing a property. 

4. Not enough skilled tradespeople 

A shortage of qualified professionals to carry out retrofitting work remains a major barrier. 

• Research suggests the UK is already short 166,000 tradespeople, with this gap expected to grow to 250,000 by 2030. 

• We also raised concerns about the quality of work, highlighting that the UK Government recently suspended 39 insulation installers due to poor standards. 

Without a clear strategy to expand and upskill the workforce, landlords will face serious difficulties meeting the proposed requirements. 

What the Welsh Government can do 

We welcome the recent consultation on permitted development rights (PDRs) and urge the Welsh Government to implement the proposed changes without delay to support the sector to meet new MEES requirements. For these reforms to succeed, Wales needs a planning system that is fit for purpose and offers similar flexibility to that in England, where reforms have already been implemented ahead of MEES reform. 

Energy policy is largely a reserved matter, meaning UK Government sets the new MEES. The Welsh Government can still influence it, however. We are urging the Welsh Government to ensure the proposals work for Wales, and champion a phased, regionally sensitive approach to energy efficiency upgrades.  

What you can do 

We’ve raised these concerns directly with Members of the Senedd and the Committee, and we’ll continue pressing for policies that are both ambitious and achievable. We’ll keep members informed as soon as further updates are available following the Government’s consultation. 

In the meantime, you can make your voice heard by writing to your MS. We've created guidance and supporting data to help you with your letter here.