Proposed Energy Reforms (EPC) update

Tue 15 July 2025

Update on the proposed Energy Reforms (EPC)

The Government intends to tighten up on energy efficiency and plans to raise the minimum Energy Performance Certificate (EPC) rating for all rental properties from E to C by 2030. This initiative aims to enhance energy efficiency across the private rented sector and contribute to the Government’s Net Zero goal.

What is an EPC?
An Energy Performance Certificate (EPC) is a home energy report, introduced to the industry in October 2008, which shows how energy efficient a property is. The reports, which are produced by qualified Domestic Energy Assessors, shows an energy rating on a scale between A and G, with A being the most energy efficient and G being the least. The rating depends on many factors:

• Building age and construction
• Windows (eg: single glazing vs double glazing)
• Insulation levels
• Type of services (eg: electricity, oil, gas, air source heat pumps etc)
• Lighting (eg: LED light bulbs)
• Heating systems (eg: boiler, hot water systems, electric heaters)

An EPC is valid for 10 years and will give an indication of running costs for both homeowners and tenants.

Under the current Minimum Energy Efficiency Standards (MEES) Regulations, which came into force in 2018, rental properties must hold an EPC with a minimum rating of an E. Where properties do not meet the minimum standard, this legislation requires landlords to spend up to £3,500 making energy improvements to their rental properties which may include:

• Replacing windows
• Increasing loft insulation
• Upgrading central heating and hot water systems

Key Points on the Proposed Reforms for Landlords
The aim of these reforms is to improve the clarity of EPCs by providing practical, clear information about a property’s energy performance and actionable steps to reduce carbon emissions and fuel costs.

• EPC Rating Requirement: From 2028, all newly let properties will be required to have an EPC rating of C. The requirement will extend to all rental properties from 2030.  It will be necessary for landlords to invest up to £15,000 (referred to as the “cost cap”) per property carrying out improvement works.
• EPC metrics: There are plans to review the assessment criteria energy assessors use to calculate EPC ratings in order to make them more accurate.
• Government Support: The Government claims that the average costs to landlords to comply with the new proposals will be in excess of £6,000 per property. Financial assistance schemes are being considered to help landlords with these upgrades, alongside the Boiler Upgrade Scheme and Warm Homes: Local Grant.
• Listed buildings: All listed buildings will require an EPC, although exemptions under MEES will still be available.
• Houses in Multiple Occupation (HMO): All HMO properties will now be required to hold an EPC and comply with MEES requirements.
• EPC validity periods and expired EPCs:  While current EPCs remain valid for 10 years, it is proposed that future certificates may have a shorter validity period. There will be a mandatory requirement to renew EPCs upon expiry.
• Exemptions: Landlords who invest up to the £15,000 cap and still cannot meet the EPC C rating may apply for a 10-year exemption from further improvements, allowing them to continue letting the property.

Although no definitive timeline has been confirmed, changes to both the EPC grading system and assessment criteria are under consideration. A consultation ran from 7th February 2025 to 2nd May 2025 and the Government is currently reviewing the responses.

Let us help

At RH & RW Clutton, our Lettings Department is dedicated to supporting landlords in navigating the growing responsibilities of the private rented sector. We offer a proactive service to help you stay ahead of regulatory changes. This can include assessing your property’s EPC ratings, recommending the most effective improvement measures, and identifying any grant funding you may be eligible for. Not only will this ensure future compliance, but it will also boost the appeal, energy efficiency, and long-term value of your rental portfolio.

Contact Sam Benson MARLA in RH & RW Clutton's Estate Agency office in East Grinstead to discuss your requirements.

This article is intended as a guide only and does not constitute legal advice. 

#epcregulations #mees #epc #netzero #energyimprovements #energyefficiency #tenant #warmhomesplan #landlords #epcreforms #property #propertyletting #propertymanagement

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