Energy Performance Certificates and Minimum Energy Efficiency Standards: What Property Owners Need to Know

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. 

Key Changes to EPCs

One of the most notable changes is the removal of the limited exemption for heritage buildings. Currently, listed buildings and other protected heritage are exempt. This exemption is being removed, meaning all heritage buildings will need to have an EPC.

Under the new rules, an EPC must be in place before a property is marketed for sale or letting. The current 28-day grace period, which allows an EPC to be obtained after marketing begins, will be removed. Property owners will need to commission EPCs earlier in the process.

For residential properties, from October 2026, the EPC will feature four headline metrics; energy costs, fabric performance, smart readiness, and heating system efficiency. 

One piece of welcome news for landlords concerned about costs: the government has decided to retain the 10-year validity period for EPCs, having considered but ultimately rejected proposals to shorten it.

MEES: Residential Sector

By 1 October 2030, all privately rented residential properties will need an EPC rating of C or above for both new and existing lettings. An extended range of exemptions will be available, and landlords with a registered exemption may continue to let until that exemption expires.

The social rented sector in England is being brought within scope. Social landlords will be required to achieve an EPC rating of C or equivalent by 1 April 2030 for all new and existing properties, or have a valid exemption registered.

MEES: Commercial Sector

For commercial property, the position is less certain.  The 2021 consultation  proposed a minimum C rating by April 2027 and a minimum B rating by April 2030. A response from the Government is still awaited. While the precise timeline has not been confirmed, landlords should anticipate that a minimum B standard may be required at some point between 2030 and 2035.

Practical Steps for Landlords

Given these developments, landlords are encouraged to take proactive steps now. This includes ensuring property databases are up to date with current EPC ratings, existing exemptions and their expiry dates. Properties most at risk of non-compliance should be identified, and budgets should account for the expenditure needed to meet the required standards. Planning works in advance will allow energy efficiency improvements to be undertaken at the most cost-effective time.

For those looking to sell or let, commissioning an EPC should be an early step in preparing a property for market.

Read our recent client alert for more detail.