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What does the new Home Energy Model, set to replace the Energy Performance Certificate (EPC) next year,  mean for landlords in the private rented sector?

The introduction of the new Home Energy Model, poised to replace the Energy Performance Certificate (EPC) next year, marks a significant shift in the landscape of the private rented sector, particularly for landlords. This change is not just a procedural update; it’s a clear signal of the increasing emphasis on energy efficiency and environmental sustainability within the housing market. Let’s break down what this means for landlords in the private rented sector, focusing on the practical, financial, and strategic implications.

Understanding the Change

The Home Energy Model is designed to provide a more accurate and comprehensive assessment of a property’s energy performance. Unlike the traditional EPC, which primarily evaluates a property’s energy use and carbon dioxide emissions based on standard occupancy, the new model is expected to incorporate a wider range of factors, including the property’s construction, heating systems, and any renewable energy sources. This approach aims to offer a fuller picture of a home’s energy efficiency and potential areas for improvement.

Implications for Landlords

  • Increased Accuracy and Potential for Improvement:
    • The new model’s detailed assessments can help landlords identify specific energy inefficiencies and targeted improvements. This could be a boon for those looking to increase their property’s market value or reduce energy costs for tenants, enhancing the property’s appeal.
  • Financial Considerations:
    • Investment in Upgrades: There may be an initial financial outlay required to upgrade properties to meet or exceed new energy efficiency standards. This could include insulation, heating systems, or renewable energy installations.
    • Funding and Incentives: It’s worth investigating any government grants, subsidies, or tax incentives available to offset these costs. Making energy-efficient upgrades could also lead to long-term savings on energy bills, a strong selling point for potential tenants.
  • Regulatory Compliance:
    • With the introduction of the Home Energy Model, we can anticipate a tightening of regulations around minimum energy efficiency standards. Landlords will need to ensure their properties meet these evolving standards to remain compliant and avoid potential penalties.
  • Market Competitiveness:
    • Properties that boast high energy efficiency ratings could command higher rental prices and attract a broader pool of tenants, particularly those concerned with sustainability and living costs.
  • Tenant Satisfaction and Retention:
    • Energy-efficient homes not only help to reduce tenants’ utility bills but also contribute to a more comfortable living environment. This can lead to higher tenant satisfaction and retention rates, reducing vacancy periods and turnover costs for landlords.

Navigating the Transition

  • Stay Informed: Keep abreast of the latest developments regarding the Home Energy Model and understand how its criteria apply to your properties.
  • Seek Professional Advice: Consider consulting with energy efficiency experts to evaluate your properties’ current standings and identify potential improvements.
  • Plan Financially: Assess the financial implications of making your properties more energy-efficient, including exploring funding opportunities.


The shift to the Home Energy Model represents a proactive step towards a more sustainable and energy-efficient housing market. For landlords in the private rented sector, embracing this change can offer a competitive edge, enhance property value, and contribute to broader environmental goals. Now is the time to start preparing for these changes, ensuring that your properties not only meet the upcoming standards but stand out in an increasingly green-conscious market. Let’s view this as an opportunity to lead in the transition towards a more sustainable future, making smart investments in our properties that benefit our tenants, our business, and the planet.