The government undertook several consultations which ended last year, proposing changes to energy performance certificates (EPCs) and minimum energy efficiency standards (MEES) for properties in England and Wales.
EPCs
EPC consultation – Commercial and residential property
This consultation recognised that changes to the framework for the energy performance of buildings are required “to ensure that it is fit for purpose”. It proposed changes to EPC metrics, the triggers requiring an EPC to be obtained, and the validity period of an EPC. A partial response was published on 21 January.
Private residential property – Metrics
Four new headline metrics will replace the current single cost metric: energy costs, fabric performance (e.g., double glazing, insulation), smart readiness (e.g., smart meters), and the efficiency and emissions of heating systems (e.g., hot water cylinder upgrades, heat pumps).
The secondary carbon-based metric will be retained, and a new one introduced: energy demand.
Timeline for new-style EPCs for residential properties
The government’s aim is that they will be introduced from October 2026.
Commercial property – Metrics
The carbon metric will be retained as the single headline metric.
The following apply to both commercial and residential EPCs:
- Requirement for a valid EPC: Currently, if an EPC ceases to be valid during the term of a lease, that by itself is not a trigger requiring the landlord to commission a new EPC. The government proposed that a new EPC would be required if it expired during the term of a lease. The response to the consultation records that the government is working to refine the position, aiming for such proposals to interact effectively with MEES and ensuring the ‘right requirements’ are placed ‘on landlords without incurring undue burdens’. The government intends to publish its decision on this requirement later this year.
- Listed buildings: There is currently a limited exemption for heritage buildings, as noted in the consultation: ‘Buildings that are officially protected as part of a designated environment or because of their special architectural or historical merit are not required to have an EPC in so far as compliance with certain minimum energy performance requirements would unacceptably alter their character or appearance.’ The government intends to remove this exemption, requiring all heritage buildings to have an EPC and bringing all listed buildings within the EPC net.
- Marketing a property: The government will update regulations so that an EPC is required at the point of marketing, removing the 28-day grace period for an EPC to be produced after a property is marketed for sale or letting.
- Validity period: The consultation proposed that the validity period of EPCs be reduced to better reflect building upgrades and improve accuracy. However, in recognition of concerns over the cost of commissioning EPCs more regularly, the government has said the 10-year validity period will be retained.
MEES
Current MEES regulations
MEES apply to privately rented property in England and Wales through the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (‘2015 Regulations’). In broad terms, a property that is required to have an EPC must not be let if it has a rating of F or G, unless a valid exemption exists and is registered.
Consultation on the private rented sector – Residential property
This consultation sought views on proposed amendments to the 2015 Regulations in respect of lettings of privately rented residential properties. The response has been published and states that for both existing and new lettings of such properties, an EPC rating of C or higher will be required from 1 October 2030. An extended range of exemptions will apply. If the landlord benefits from an exemption which is registered on the Exemptions Register, it can continue to let the property until the exemption expires.
Consultation – Introduction of MEES in the social rented sector
MEES do not currently apply to the social rented sector. This consultation proposed the application of MEES for socially rented homes in England (only) with the three main drivers behind the proposal being
- Improvement of the decency of homes
- Bill savings and reduction of fuel poverty
- Better energy performance of socially rented homes to achieve net zero carbon emissions
In its response the government has stated that it will require all new and existing social rented properties to achieve an EPC rating of C or equivalent by 1 April 2030 or have a valid exemption registered.
MEES private rented sector – Commercial property
The government indicated plans to publish a response to the previous commercial property MEES consultation (which ended in 2021 and proposed a minimum EPC rating of C by 1 April 2027 and a minimum EPC rating of B by 1 April 2030) early last year – the response is still awaited.
Whilst the response to the residential consultation has provided more certainty in that sector, the position as to timing for increased standards for commercial property remains unclear, although it is anticipated that a minimum B standard will be required at some point between 2030 and 2035. Whether an interim C standard will be mandated remains to be seen.
What are the implications of the proposed reforms?
Changes to EPC requirements will bring more properties within the scope of MEES.
Whilst the commercial property timeline for MEES changes has not been set, landlords need to be mindful of the trajectory for increased standards and ensure their property database is up to date with a live register of EPC ratings, existing exemptions (with supporting documentation), and expiry dates. Properties which are most at risk of non-compliance with the new standards should be identified and expenditure required to comply with higher minimum standards for lettings needs to be budgeted for. Landlords should plan ahead so that measures to increase energy efficiency can be undertaken at the optimum time.
The requirement for an EPC before marketing will lead to costs being incurred and more preparation in advance of a decision to sell or let a property. It will be necessary to check whether a valid EPC already exists and if not one will need to be commissioned for inclusion in the marketing pack.
Client Alert 2026-022