How EPCs are changing and what landlords need to know

How EPCs Are Changing – And What Landlords Need to Know

The government has confirmed a major shake-up of Energy Performance Certificates (EPCs), following its 2024 consultation on reforming how energy efficiency is measured and enforced across residential property.

While the response has been described as a “partial response”, it sets out a clear direction of travel for EPC reform and Minimum Energy Efficiency Standards (MEES), particularly for landlords in the private rented sector.

Here’s what’s changing — and what it means for landlords.

A New Way of Measuring EPCs

Rather than relying on a single headline rating, future EPCs will be based on multiple separate metrics, designed to give clearer and more practical information about how a home actually performs.

The four headline metrics will be:

  1. Energy cost – how much it is expected to cost to run the home
  2. Fabric performance – the efficiency of the building itself (walls, insulation, windows, etc.)
  3. Heating system – how efficient the heating and hot water systems are
  4. Smart readiness – how well the property can support smart energy technologies

According to the government, separating these measures will help consumers better understand where improvements are needed, while allowing policymakers to better target fuel poverty and net-zero objectives than the current single-score system.

How Compliance Will Work: The Dual-Metric Standard

Compliance will now require meeting a dual standard.

To be compliant by 1 October 2030, landlords must:

  • Meet the “C” standard for Fabric Performance (this is the primary metric), and
  • Meet either:
    • the Heating System metric, or
    • the Smart Readiness metric

This approach is designed to give landlords flexibility. If a property is difficult or costly to insulate further, landlords may instead be able to comply by investing in efficient heating systems or smart energy technology.

What the Government Is Saying

In its detailed policy response, the government confirmed that EPC reform and MEES will be aligned to avoid unnecessary burdens on landlords.

Importantly, the Department for Energy Security and Net Zero (DESNZ) is the lead department setting EPC policy, working alongside the Ministry of Housing, Communities and Local Government (MHCLG).

The government has stated:

“We will ensure the revised Energy Performance of Buildings and Private Rental Sector Minimum Energy Efficiency Standards regulations interact effectively to place the right requirements on landlords without incurring undue burdens.”

DESNZ has also confirmed that existing EPCs will remain valid for their full 10-year lifespan.

EPC Validity and the 2029 Transition Rule

The government has now clarified the position on EPC commissioning:

  • Landlords do not need to commission a new EPC immediately when the new system is introduced
  • Existing EPCs remain valid until they expire (up to 10 years)
  • However, if a landlord does not have an EPC showing a “C” rating by 1 October 2029, their next EPC must be issued under the new Home Energy Model metrics

This effectively forces late adopters to transition to the new system if they have not already reached compliance.

Additional Metrics Will Still Be Included

Alongside the four headline metrics, EPCs will continue to display additional secondary information:

  • Secondary energy demand metric
    Showing modelled energy usage based on delivered energy
  • Carbon emissions metric
    Providing a snapshot of emissions associated with the building

Homeowners (not just landlords) will also be able to commission EPCs voluntarily under the new system to better understand improvement options.

The Warm Homes Plan: One Clear Deadline

Alongside EPC reform, the government has confirmed its Warm Homes Plan, providing clarity on MEES enforcement for landlords.

Key points landlords need to know:

  • Single compliance deadline:
    All private rented sector properties must comply by 1 October 2030
  • No interim 2028 deadline:
    Previous proposals for new tenancies have been dropped
  • Lower cost cap:
    The maximum required investment has been reduced from £15,000 to £10,000
  • Property value adjustment:
    For properties valued at under £100,000, the cap is reduced where £10,000 would represent 10% or more of the property’s value
  • Backdated works count:
    Any qualifying energy efficiency improvements carried out since 1 October 2025 will count toward the £10,000 cap
  • Grants remain available:
    Schemes such as the Boiler Upgrade Scheme will continue to be available

Increased Penalties for Non-Compliance

Enforcement is also being strengthened.

The maximum civil penalty for non-compliance with MEES is set to increase from £5,000 to £30,000 per breach, significantly raising the financial risk of failing to meet the new standards.

What Landlords Should Do Now

While some technical details are still being finalised, the overall picture is clear:

  • EPCs will become more detailed and targeted
  • MEES compliance will operate against one firm deadline
  • Early investment in energy efficiency will count toward future obligations
  • Penalties for inaction will be substantially higher

For landlords, this is a clear opportunity to plan ahead rather than react under pressure — particularly while grant funding, cost caps and flexibility remain available.

Final Thoughts

EPC reform is no longer just about chasing a single letter rating. The new system is designed to reflect how homes actually perform, how much they cost to run, and how ready they are for a low-carbon future.

We’ll continue to track developments as the government publishes its final regulations — and keep landlords informed about exactly what action is required, and when.