The Government has announced it will delay the launch of its reformed Energy Performance Certificate (EPC) regime that was expected in 2026 until the second half of 2027.
The timetable for Minimum Energy Efficiency Standards (MEES) remains unchanged, with landlords still expected to meet EPC C by October 2030. That means the challenge for the Private Rented Sector (PRS) is not whether improvements will be needed, but how to plan for compliance while the details of the future system have yet to be published.
The delay appears to have followed “engagement with industry on the delivery timeline”, pushing back the point at which ministers had intended to announce the new methodology for calculating EPCs. While this may give landlords a slightly longer runway before the revised assessment framework is introduced, it also extends a period of uncertainty that many will find difficult when planning works.
An MHCLG spokesperson stated “The shift to the EPC timeline has no impact on private rented sector or social rented sector minimum energy efficiency standards (MEES) compliance deadlines. Landlords should continue with their plans to improve the energy performance of their homes to ensure their tenants have high quality, decent homes as soon as possible.”
Changing goalposts
The reforms are expected to introduce a broader set of indicators rather than relying mainly on the current headline efficiency score. Future EPCs will include measures covering:
- Fabric performance
- The heating system
- Smart readiness
- Energy costs
Officials have said the aim is to provide clearer information on how homes perform and what improvements could reduce both bills and emissions. The fact that the methodology is changing means a rating achieved under the current system may not remain the same under the new reforms.
Check EPC expiry date
Currently EPCs remain valid for 10 years, yet a C rating under today’s system is not guaranteed to remain a C under the new framework. For that reason, checking when an EPC was issued becomes an important first step.
The government have agreed to honour the 10-year term of EPCs assessed under the current framework. However, the length of time an EPC remains valid may shorten under the new framework. If a certificate expires before 2030, renewing it before the new reforms are introduced may offer landords additional time to prepare, even after the new system comes into force.
Cost cap
The treatment of costs to meet compliance is another point likely to matter. Any upgrade costs incurred from October last year will count towards the future £10,000 cost cap exemption. This means that landlords carrying out improvements now may already be moving towards compliance with future regulatory requirements. Landlords should keep written and photographic records of any upgrade works.
For landlords considering which works to complete the MHCLG states “Where possible, starting with fabric improvements may be a sensible approach. The government has indicated that the fabric element of the Energy Efficiency Rating (EER) calculation is likely to remain broadly similar in the new framework.”
What this delay does not do is remove the strategic importance of energy efficiency in the rental market. Landlords still face a 2030 compliance deadline, and the direction of travel remains towards broader and more detailed measurement of a property’s performance.
Landlords with properties with an EPC C may be better placed than others, but even they cannot assume they are fully insulated from change. Until the revised framework is published, landlords are left balancing caution with preparation. That is not an ideal position, but it does make early review and well-documented improvement work more important, not less.