So, this is quite a complicated piece of work, Jenny. At the moment, we're looking at options to support private rented sector landlords to decarbonise their properties, for example through the new scheme via the alignment of ORP with leasing scheme Wales. I think committee's familiar with both of those. Leasing scheme Wales—I'll just remind you very briefly—is a scheme where landlords give their homes over to us and we manage them as if they were social homes, for a minimum period of five, preferably 10 or 15 years, and we help them bring them up to standard.
If we had a line in the sand: 'You must have EPC'—pick a number out of the air—'D', or 'E', as a result, and the UK Government did try to impose an EPC standard. We know that what happens to a large number of our private rented sector properties is that the owners give up and sell, because they don't feel that it's worth bringing the home up to that, or they don't have the initial capital necessary to do it. And one of the big real issues for us is that some of the least thermally efficient properties are larger, multigenerational properties in the private rented sector in our big diverse cities—so Cardiff, Swansea, Newport, and, to some extent, Wrexham. So, we need to make sure that those properties stay available for people to live in, but are also brought up to standard.
So, for us, it is about incentivising the landlords to bring them up to standard with things like leasing scheme Wales, and other options, and also us understanding, via the ORP and innovative housing programmes, what would work on the type of housing that we're talking about, which is often Victorian and Edwardian housing in the middle of the city that can be quite difficult to retrofit. So, the learning that we get out of the Welsh housing quality standard consultation with our social rented landlords is directly applicable here, and then what the options are to do that are applicable.
The Renting Homes (Wales) Act 2016 has been getting a right pasting in some committees as somehow putting landlords off, but, of course, one of the things that the renting homes Act does is insist that rented homes come up to standard; that they're fit for human habitation, and I think that that will be seen, once it beds in, to be a really good thing in terms of driving some of this improvement. So, yes, incentivising landlords to invest in their properties in a way that allows them to stay in the sector is really important.
And then, the last thing I would say is that the rental market in Wales is really different. So—[Inaudible.]—only own one property, and that's 33 per cent of rental properties across Wales. Over 60 per cent of rental properties are currently EPC D or E rated, and need somewhere between £6,000 and £12,000 to improve to a C rating, which is a significant financial commitment for most landlords. You're talking about a year's rental income there. So, we really need to be sure to get the incentives right to get this done in a way that doesn't contract the private rented sector in a way that will make the homelessness issues that we have across Wales worse, and not better.