Landlords must get help if the private rented sector (PRS) in Wales is to decarbonise on an affordable basis, says Propertymark.

The industry body has put forward several key recommendations, which will now be considered by the Welsh government.

Propertymark’s biggest concern is that all new UK tenancies will be expected to meet an Energy Performance Certificate (EPC) rating of C from April 2025 and existing tenancies by 2028, under current proposals.

However, the organisation has warned that raising the cost cap on work to boost energy ratings would hit many Welsh properties the hardest.

The current cap is £3,500, and if a property still fails to meet its EPC target once that has been spent, the owner can apply for an exemption. The UK government is planning to increase the cap to £10,000, which would force landlords to make a significantly bigger outlay.

Providing evidence to a Senedd committee, Propertymark pointed out that homes in Wales have some of the lowest property values in the UK, together with low energy efficiency ratings.

EPC loans

To level the playing field for landlords and agents operating in Wales, Propertymark recommended that the Development Bank of Wales could offer grants or interest-free loans to landlords to finance improvements.

Other incentives could be made through the taxation system, with possible reduced rates of stamp duty, or council tax rebates for both landlords and homeowners.

Propertymark has also called for the Welsh government to undertake a communications campaign for tenants, landlords, agents and homeowners to meet its goal of achieving Net Zero.

The industry body believes boosting awareness is more important than ever with the rise in energy bills, and would help mobilise a retrofit revolution.

Underperforming

The Senedd committee made a total of 29 recommendations which will go forward to the Welsh government, including a proposal that Rent Smart Wales should have a role in raising awareness of Minimum Energy Efficiency Standards (MEES) among landlords, and identifying underperforming properties in Wales.

Timothy Douglas (pictured left), Head of Policy and Campaigns at Propertymark, said: “We support the Welsh government’s aims of achieving Net Zero and moves to improve the energy efficiency of homes in Wales.

“We’re really pleased to see that our proposals, such as the availability of interest-free grants for landlords, requests for an agreed timetable and milestones for the sector, the production and inclusion of a clear decarbonisation strategy, alongside calls for the minister to provide clarity on how she will raise awareness, have all been recommended to the Welsh government.

“We now urge the Welsh government to act upon these recommendations and work with the UK government to introduce policies that allow landlords and homeowners to decarbonise their homes and properties in Wales.”