Higher rate efficiency standards (HRAD)

Higher rate efficiency standards (HRAD) is a shorthand way of describing energy efficiency requirements that go beyond the historic legal minimum for rented homes. In the private rented sector this usually means moving from the old baseline of EPC band E to a more ambitious target such as EPC band C or equivalent by 2030, as set out in recent government proposals for the PRS and Warm Homes and energy-efficiency plans.

HRAD implies deeper upgrades than simple “quick wins”, including better insulation, higher-efficiency heating systems, improved glazing and ventilation, and sometimes low-carbon technologies. Government analysis suggests many sub-standard homes can reach C within a typical investment cap. Often modelled up to around £10,000–£15,000 per property.

Under the Renters’ Rights Act, these higher standards are being woven into the wider rental standards regime and enforced through local authorities, the PRS Database and ombudsman/redress routes. Non-compliance may affect a landlord’s ability to let, use certain possession grounds, or avoid civil penalties.

For professional landlords, HRAD is best treated as a planning benchmark, including modelling costs across the portfolio, timing works between tenancies, exploring grants or green finance. Also communicating clearly with tenants about disruption and the benefits of warmer homes and lower bills and expenses.