Higher rate efficiency standards (HRAD)

Higher rate efficiency standards (HRAD) is a shorthand for the energy efficiency rules that go beyond the existing Minimum Energy Efficiency Standards (MEES). In practice, HRAD means moving from the historic EPC band E baseline towards a target such as EPC C or equivalent for homes in the Private Rented Sector (PRS), as part of the Renters’ Rights Act and net-zero agenda.

For landlords, HRAD turns energy performance into a core element of rental standards, alongside safety and disrepair. Meeting HRAD will often require planned capital improvements – upgraded insulation, better glazing, more efficient heating and hot water, and ventilation that helps prevent damp and mould. Ongoing revenue expenses, like servicing and optimisation, then keep those systems working properly.

Homes that lag behind HRAD may be treated as less fit for human habitation, attract closer scrutiny under the Housing Health and Safety Rating System (HHSRS), and trigger action linked to Awaab’s Law where cold and damp conditions harm health. Expect stronger enforcement by the Local Housing Authority (LHA), with compliance visible via the PRS Database and open to challenge through the Private Rented Sector Ombudsman.

Professional landlords now factor HRAD into acquisition, refurbishment and rent setting decisions, rather than treating energy upgrades as optional extras or trying to recover them through non-permitted payments.

Also see our landlord blog articles.