Flats and terraces may benefit from new EPC assessments

Labour have revaluated their energy performance improvement strategy, and some private landlords may reap more benefits from this.

It has been widely publicised that Labour are tightening Energy Performance Certificate (EPC) criteria, with the aim of getting all private rental sector (PRS) properties up to a grade ‘C’ or higher by 2030.

In the private landlord community, there has been widespread concern that these updated EPC standards would be ‘one size fits all’ across all property types.

This would render some landlords at a large disadvantage, because their properties may not have the physical capacity to meet the minimum standards required.

While these fears cannot be entirely put to rest yet, there is a ray of hope that the government are looking to rebalance the playing field by making fewer assumptions about property construction standards.

What is RdSAP 10?

Reduced Data Standard Assessment Procedure (RdSAP) 10 is the new methodology Labour will use to assess the UK housing sector, from June 2025 onwards.

Energy assessors will now take more specific and accurate information about properties. The condition of windows will be considered, which is important because the possibility of double-glazing will greatly impact the property’s ability to retain heat.

Information about properties’ heating systems will also be recorded. 

Labour are pushing for more energy efficient heating systems, such as air source heat pumps, to become universal across the sector. But, not all properties are able to benefit from these, and may be better served by traditional gas boilers.

However, evidence of the type of heating system will be mandatory, otherwise the assessor will be forced to make a default assumption. Failure to provide evidence may negatively affect the landlord, as the assessor may underestimate the property’s heating efficiency.

Other property specifications that RdSAP 10 takes into account include smart heating controls, floor area, and insulation, which will inform how energy is being used within a home and how it is retaining heat.

Lastly, clearer recommendations will also be given to property owners on how to improve energy efficiency. Although, it has been reported that assessors will be allowed to push for what were previously classed as ‘alternative’ heating solutions, such as heat pumps.

Considerations for flats and terraces

Extra considerations will be made for flats and terraces assessed via RdSAP 10. When heat loss is calculated, these property types will be given more lenient standards to meet, compared to detached and semi-detached houses, for example. This may have an impact on assessments on houses in the future.

With the housing market set to face additional turbulence – namely the approaching reforms promised in the Renters’ Rights Bill – these property types may become even more highly sought-after than they already are. 

The downside to this new EPC initiative is that these more thorough assessments will take longer, which may increase the cost. 

No matter the property, keeping records of all energy efficiency measures will remain vital going forward.