Minimum energy efficiency standards and EPCs
What are the energy efficiency laws for rented properties and have they changed?
Today, more than ever before, there’s a huge focus on the impact we have on the environment. The world is getting greener, and the UK has pledged to reduce its greenhouse gas emissions to net zero by 2050, meaning it will only take as much planet-warming gases - such as carbon dioxide - out of the atmosphere as it puts in. By 2050, we are legally required to have reduced our greenhouse gas emissions by 100% from 1990 levels.
Taking action to make the UK’s homes more energy efficient would have a significant impact on our carbon footprint– 16% of our total carbon emissions come from our homes, with the average home in the UK losing heat three times faster than a German property. This is largely due to the fact that the UK has some of the oldest homes and worst insulated homes in the world.
In this guide, we’ll briefly explain the latest government plans to increase energy efficiency in the private rented sector, we’ll look proposals for changing EPC ratings and assessments, and then we’ll focus on what landlords can do to increase energy efficiency in their rental properties.
The Government put out a press release on 7 February 2025, “Warm homes and cheaper bills as government accelerates Plan for Change”, announcing its plans to boost energy efficiency standards in the private rental sector and improve the tenants’ lot.
The Government is considering rule changes on how minimum energy efficiency standards or MEES are to be applied to rental properties in the future and has launched a consultation to help decide what changes are needed. The Government says its proposals could save private renters £240 per year on average on their energy bills, with all private landlords in England and Wales mandated to meet higher energy performance ratings in their properties by 2030. The consultation, “Improving the energy performance of privately rented homes in England and Wales” concludes on 2 May 2025. Landlords and all interested parties are encouraged to respond using the online survey.
C or above
D or E
Below E
My property is exempt
Over the last decade, the laws around energy efficiency in rented properties have tightened and there are now minimum standards. For the vast majority of private landlords, this means you cannot now let a property unless it has a minimum rating of ‘E’ on the Energy Performance Certificate and there are fines of up to £5,000 if you don’t achieve this rating, subject to some exemptions. You can read more about the minimum energy efficiency standards for landlords in our article here.
It’s also important to realise that these are minimum standards – a level of energy efficiency that a rented home cannot fall below – and there is a lot more you can and should do to go over and above this basic level. Indeed, until September 2023 government proposals were that by 2025 it would be a legal requirement for newly rented properties, and by 2028 for existing tenancies, to have a minimum EPC C rating.
Now (at February 2025), the Government’s main new proposal is that all rentals will need an EPC rating of “C” by 2030, and all new tenancies will need to meet the standard by 2028. Failure to comply will mean a £30,000 fine per property.
What complicates matters somewhat is the current EPC rating of “C” may not be the same “C” rating after some time in 2026. It’s been recognised that the current method of assessment is unreliable. Based on a narrow range of metrics, the principal metric being energy cost as opposed to energy (carbon) efficiency, it is measuring the wrong thing, and a number of assessor measurement assumptions means the grading can vary between assessors, and buildings.
The Government wants to improve the reliability and validity of the assessment process used to determine EPC ratings for buildings, so it’s developing a much more rigorous assessment process. Unfortunately for landlords this will increase the cost of assessments.
Another ongoing consultation is the Reforms to the Energy Performance of Buildings regime which consults landlords and other interested parties about the new methodology. It will consider a range of new measurements including:
Energy cost: helping individuals understand the financial implications of a building’s energy efficiency and make informed decisions about potential improvements
Carbon: an estimate of the carbon emissions arising from the energy used in the building
Energy use: offering insights into overall energy consumption and identifying areas for energy efficiency improvements
Fabric performance: assessing the thermal performance of a building’s envelope and promoting the importance of well-insulated, comfortable, and energy-efficient spaces
Heating system: providing information on the efficiency and environmental impact of a building’s heating source and encouraging the adoption of cleaner heating technologies
Smart readiness: assessing a building’s potential to integrate smart technologies that can optimise energy consumption and the ability of consumers to benefit from cheaper smart tariffs.
