Welsh providers must comply with new housing quality standard by 2034

It is recognised that some elements of the standard are not applicable to all homes and that not all properties will be able to achieve some elements for various reasons.

For the affordable warmth of tenants, the new standard will require social landlords to aim to achieve an Energy Performance Certificate (EPC) A rating for each social home in the future. This will be done in steps, with landlords expected to ensure that all their homes reach a fabric-based EPC C by 2029.

For decarbonisation, social landlords will be required to achieve an Environmental Impact Rating of 92 (out of 100) in the future across their whole social housing stock.

The Welsh Parliament is committed to bringing all existing social housing up to this new standard by 2033, although some parts may be reached at different times.

The standard requires social landlords to undertake a whole stock assessment of their properties and to produce a target energy pathway (TEP) for each home, which will outline what needs to be done to that property to achieve the required targets. The TEP will also include information on the expected costs and timings of the improvements.

The Welsh government said that by 31 March 2025, landlords must assess the condition of their stock and the work necessary to meet the standard and estimate the investment needed to achieve the standard.

By this date, providers need to complete tenant engagement on the programme, prepare and submit a compliance policy to the Welsh government, and update their business plan to reflect the programme.

By 31 March 2027, landlords must produce TEPs and by 31 March 2034 should have confirmed that all their housing stock meets the standard.

Climate change minister Julie James said in the WHQS document: “This standard builds on the excellent achievements of its predecessor and will continue to drive up and maintain the quality of social housing in Wales.

“WHQS 2023 once again raises the bar for social housing and aims to be both bold and achievable. It is deliberately demanding.

“But I am determined that social housing in Wales becomes a tenure of choice providing modern, low-carbon, quality homes which are fit for the 21st century and beyond.”

The Welsh government said that funding – in the region of £270m over this term of government – is already available through the Optimised Retrofit Programme to help social landlords with meeting new elements relating to affordable warmth and decarbonisation.

During the current financial year, £70m has been indicatively allocated to landlords on a formula-funding basis and the Welsh government has committed a further £70m next year.

Ms James added: “I am confident that this is the right standard at the right time, but implementation will not be without its challenges. 

“As a government, we will continue to work collaboratively with the sector, in the same way we have developed the standard. One of the key areas will be finding suitable long-term funding solutions in partnerships with social landlords.”

Matt Dicks, national director at the Chartered Institute of Housing Cymru, said that although the organisation welcomes the aim of the standard, “sufficient funding” is needed to achieve compliance.

He said: “While the sector is committed to working in partnership with Welsh government, lenders and other stakeholders to find innovative ways to draw in the investment required to make this shared ambition a reality, meeting the WHQS 2023 standards will be challenging for the housing sector in Wales.

“While we welcome the Welsh government’s aim in building on the successes of the original WHQS, ensuring the provision of good-quality homes, this cannot be done without sufficient funding.

“There must be long-term certainty from Welsh government linked to financing activity to decarbonise existing homes at pace. The level of funding outlined is not likely to be able to meet this aim due to ongoing inflationary pressures of housing organisations’ wider operating environment.”

The expectation is that WHQS 2023 will be reviewed within three years and the outcome of this iteration of the standard will be reviewed and refreshed within 10 years.

The Welsh government said the next review will then take into account the improvement made to the social housing stock from this standard and the progress required to remain on track to meet 2050 climate obligations.