On 7 February 2025, the government initiated a 12-week consultation to gather feedback on proposed changes to raise the Minimum Energy Efficiency Standards (MEES) for privately rented homes. New tenancies will have to comply as early as 2028 with a minimum energy performance certificate (EPC) rating of C.

The government states it aim is to improve energy efficiency in the private rented sector, contributing to the UK’s net-zero objectives and addressing fuel poverty.

Key Proposals

Increased Energy Efficiency Standards: Currently, rental properties must have a minimum EPC rating of E, unless a valid exemption applies. The government proposes that all privately rented properties achieve minimum EPC rating of C or above by 2030. This is proposed to be implemented in phases:

• New tenancies would need to comply by 2028
• All existing tenancies by 2030.

New EPC Assessment Metrics: Following planned EPC reforms to be introduced in 2026, the assessment criteria will change. Currently an EPC is assessed on the cost of energy to heat, light and provide hot water in a property. Higher EPC ratings indicate a property has cheaper energy bills. The new methods will focus on the following metrics:

• Fabric Performance: Evaluating the building’s insulation and structural efficiency to retain heat.
• Smart Readiness: Assessing the property’s capability to integrate and utilize smart technologies such as smart meters, battery storage and flexible energy usage.
• Heating System Efficiency and Emissions: Measuring the performance and environmental impact of heating and hot water systems. Low carbon technologies like heat pumps will be prioritised.

Landlords would be required to prioritize improvements in fabric performance and then address either smart readiness or heating system efficiency.

Smart Meter Installation: The government is exploring regulatory measures to promote the installation of smart meters in privately rented homes, aiming to enhance energy monitoring and efficiency.

Transition Period

During the transition period, different rules will apply depending on whether a property has an EPC issued under the current system or the new system introduced in 2026:

If already EPC C. If a landlord already has an EPC rated C or above under the current system, the property would be recognised as compliant until the EPC expires (usually 10 years after issue).

If the EPC is below EPC C. If a property is below EPC C, the landlord would need to obtain a new EPC using the updated methodology before making improvements. The government’s aim is to ensure that landlords receive accurate recommendations based on the new metrics, rather than relying on outdated EPC advice. The cost of obtaining this new EPC would be included in the £15,000 cost cap.

Exemptions

Landlords may qualify for an exemption, but these would need to be registered. The proposed exemptions include:

Cost Cap: Landlords would be obligated to invest up to £15,000 per property to meet the proposed standards. If the necessary improvements exceed this cap, landlords could register a 10 year exemption. An affordability exemption is also under consideration, which would lower the cost cap to £10,000 for certain properties, such as those in lower rent brackets or council tax bands. Only costs incurred after the regulations come into force (probably in 2026) would fall within the cost cap.

New landlord exemption. If a landlord purchases a property with tenants in situ, they would have six months to comply with the regulations.

Third-Party consent exemption. If required improvements need freeholder, planning, or tenant consent and that consent is denied, an exemption could be registered. The consultation document refers to a tenant, superior landlord, mortgagee, freeholder or planning department and “despite best efforts that consent cannot be obtained or is given subject to conditions which cannot be reasonably complied with”. Where it is a lack of tenant consent, the exemption will last until the tenancy ends.

Property devaluation exemption. If an independent surveyor confirms that improvements would reduce the property’s value by more than 5%, the landlord may be exempt.

Submitting Feedback

The government is seeking input from landlords, tenants, and other stakeholders to refine and implement the proposals. The consultation is open until 2 May 2025. The detailed proposals can be viewed using the link below:

Feedback can be submitted through the official consultation page using the link below.