EPCs are about to change – it’s time to have your say
Changes to the way Energy Performance Certificate ratings are calculated are on the cards, with the Government set to introduce more comprehensive home assessments and more frequent inspections.
The changes are likely to mean extra expense for landlords, with the new, more in-depth inspections expected to take longer, and, as such, come with a heftier price tag.
But what else does this mean for you as a landlord?
The Government launched a consultation on the new plans earlier this month – one of two concerning EPCs, with the second, on new minimum ratings for rental homes also due to be launched before the end of the year.
What changes are the Government proposing?
The Government wants to:
- change the way in which EPC assessments are carried out – and how energy efficiency is measured
- increase the frequency of inspections – which could be required as often as every two years.
What will the new inspections take into account?
According to the consultation documents inspectors will assess:
- carbon emissions
- the fabric of the building
- the heating systems used
- the cost of bills
Why is the Government making the changes?
Ministers say the current EPC system is problematic because a single headline metric, like the current Energy Efficiency Rating (EER) doesn’t provide complete representation of building energy performance.
Currently, EPCs are valid for 10 years, but the Government said mandating more frequent inspections would improve the accuracy and timeliness of energy performance information. It also wants to encourage landlords to invest in low carbon heating technologies such as heat pumps.
When it comes to what is measured it wants to replace the existing Standard Assessment Procedure (SAP) with the Home Energy Model (HEM) something it believes will give a more accurate rating. This would be introduced alongside better training for assessors, and fines of up to £800 for non-compliance.
What will this mean in practice?
The nature of the changes mean you will need to have the new inspections carried out – with more frequent re-inspections. As these checks will be more in-depth – including, for example measuring the sizes of windows’ – they are expected to take longer and, as a result, be more expensive.
The Government is also considering options for reducing the length of time an EPC is valid for, from the current 10 years. This is to ensure that ratings more closely reflect the current state of the property and provide more accurate information about potential upgrades.
The move to considering carbon emissions may also see your EPC downgraded for having a gas boiler, with higher ratings proposed for low-carbon options such as heat pumps, or a “middle” option of electric water heating.
What else is included?
In addition to this the Government plans to insist private rented properties always have a valid EPC, rather than solely at the point of marketing and entering a new tenancy. Under the current rules a landlord is not required to replace an EPC if the same tenancy continues after the EPC expires.
Under the plans EPC requirements would be extended to cover all houses in multiple occupation (HMOs), holiday lets, and listed buildings, whereas at present an EPC is only required for HMOs where the property is let on a joint tenancy.
What don’t we know yet?
It is not clear from the consultation whether your property will need high scores on all the individual matrix to meet the updated Minimum Energy Efficiency Standards (MEES) or the future Decent Homes Standard.
There are also questions over what happens to existing EPCs and how long they will remain valid for.
The Government’s preference is to maintain the status quo until individual EPCs run out – at which point landlords will switch over to the new system.
However, it is considering other plans, from invalidating all EPCs immediately or introducing a transition window.
What does the NRLA think?
From what we have seen so far, the most challenging element of the proposals will be the new heating system metric. With the ultimate aim of encouraging landlords to install low-carbon heating, the Government proposes ranking different heating systems, with fossil fuel heating systems at the bottom of the ranking, and heat pumps at the top.
This could be bad news for tenants, who may be left with higher bills due to the fact efficient gas boilers can be cheaper to run than some heat pumps and in our response, we will be asking for the most energy efficient gas boilers to be ranked as an effective way to reduce energy consumption.
Next steps
The changes to EPC metrics are expected to be introduced in the second half of 2026, with a transition period to follow. The Government is also working on the development of the Home Energy Model for domestic buildings, which will inform the new EPC methodology and will be consulted on in 2025.
The Government has confirmed that rented properties will require an EPC C rating for rented properties by 2030 with a consultation due later this month.
The existing EPC consultation is open until 26 February, 2025. The NRLA will submit a response, making the case for changes that are fair, practical, and workable for landlords.
If you would like further details, or to respond to the consultation yourself, more information can be found here.
More information
- Part of the NRLA family, Safe2 is a digital platform providing of all forms of property safety certification. A one-stop-shop for all things compliance, it sends alerts when documents are due to expire, organises inspections and repairs and issues certificates. All NRLA members are entitled to exclusive discounts when using any of Safe2’s services.
- The NRLA offers a vast range of expertise, resources, and exclusive member benefits and savings, campaigning and championing the interests of landlords. To join our community of more than 100,000 landlords click here.
