EPCs are changing: Here's a chance to have your say

Hot on the heels of last month’s announcement on minimum energy efficiency standards (MEES) new plans to change the way they are calculated have been announced. We look at what this means for you – and how you can have your say. 

Landlords will all have to bring their homes up to a minimum EPC rating of C to legally let them out by October 2030. 

At the same time the Government will phase in changes to the way EPC ratings are calculated, to encourage landlords to install green energy systems in their rental properties. 

What is the Government proposing?

EPCs are, at present, calculated based on the energy costs for your home. 

Under the new Home Energy Model three metrics will be taken into consideration. These are:  

• Fabric performance 
• Heating systems 
• Smart readiness  

Under the new system landlords must make the required fabric first improvements then pick either the heating systems or smart readiness metric to adhere to.  

The new Minimum Energy Efficiency rules also state that landlord spend is capped at £10,000 per property, so once you have reached this limit you can apply for an exemption.

What does this mean in practice?

Fabric performance relates to how well the property retains heat, so if you have decent insulation and double glazing you will probably hit a C. If not, those are two areas you could look to improve. You will also need to make sure it is property ventilated. 

For the other two, things are a bit more complicated.  

Heating systems

Under current rules if you have a modern, efficient gas boiler that’s working as it should you will likely reach a C.  

However the Government is proposing that, under the heating systems metric, no house with a gas boiler would be able to reach a C. This is intended to promote clean heating systems such as heat pumps – with grant funding of £7,500 available under the Boiler Upgrade Scheme (BUS) to cover part of the cost.

Smart readiness

When it comes to smart readiness, the Government wants to encourage landlords to generate and store their own energy, and is proposing the introduction of solar panels to this end.

When will this happen?

Once the Home Energy Model is in place it will run alongside the existing mechanism for calculating EPCs (known as RdSAP, for those interested) until October 2029. This is shown on existing EPCs as an Energy Efficiency Rating (EER). 

If you purchase an EPC before October 2029 and your EER rating is A, B or C, then your EPC will remain valued until it expires. This will mean you can continue to let your property without requiring an exemption until that point. 

However, if by October 2029 you do not have an EPC with an EER of A, B or C, then you will need to commission a new-style EPC, which will be calculated using the Home Energy Model.  

You will then be required to either follow the measures outlined in the EPC to meet the C rating or above on the fabric and either the heating system or smart readiness metrics, or apply for an exemption. 

Should I have my EPC calculated using the existing method or the new Home Energy Model?

This is entirely up to you. If you feel you can reach a C under existing rules then it may be worth getting an up-to-date EPC now, giving you time to factor in, and save for, improvements that will be needed further down the line. 

If you are already planning energy efficiency improvements to your home, you might opt for the new system.

What is the Government consultation asking?

The Government has already decided, following previous consultations, that the minimum EPC C rating will be introduced in 2030 and that the calculation method to arrive at this will change. 

What it is asking now is details on how the methodology for the Home Energy Model should apply to EPCs, including how to translate it into the new EPC bands for the headline metrics.

Are there any exemptions from the new rules?

Yes, there are a number. The main one is the cost cap, touched on earlier, of £10,000 covering a 10-year period. This cap is reduced to 10% of the property value for homes valued under £100,000. 

The cost cap covers work carried out from October 2025 (that was recommended by the EPC or an expert), as well as the cost of obtaining the EPC. 

A solid wall insulation exemption (SWI) is also planned for landlords who choose not to install SWI if there are concerns about damp and mould. 

Other exemptions include:​ 

• Third party – This would be available where a tenant or freeholder refuses consent for work .​ 
• All relevant improvements made – which could be granted where no further recommendations on EPC are available and the house has not hit C.​
• Negative impacts – available where the measures would devalue the property or negatively impact it. ​ 
• New landlord – This is a six-month exemption to give new landlords time to get work done. ​

What does the NRLA think?

We support the overall principles to decarbonise heating and are pleased the Government has u-turned on its initial plan for EPC C by 2028 for new tenancies. We are also pleased ministers listened to us on the cost cap and reduced it from £15,000. 

However, with around 2.5 million homes currently falling below EPC C, and a predicted shortage of quarter of a million skilled tradespeople by 2030 means there is a mammoth task ahead. 

In our response to the Home Energy Model consultation, we will be asking the Government to: 

• Ensure continuity with the old ratings. The new ratings should broadly line up with existing EPC bands so landlords and assessors can understand and use them without unnecessary complexity.
• Recognise that efficient gas boilers have a role and can still provide cheap and efficient heating for tenants.
• Make ventilation a priority. Properties shouldn’t be forced to install installation where this will cause increased damp and mould.
• Recognise the limitations of certain properties. Homes that are unable to make certain improvements should be able to meet the standard in more reasonable ways. 

More information

• To respond to the consultation click here.
• Our award-winning Training Academy offers an Energy Efficiency & MEES Compliance eClassroom course. To find out more and book click here. 
• NRLA compliance arm Safe2 provides of all forms of property safety certification, offering landlords a single service to ensure gas, electrical safety and energy performance certificates are up to date. For more information click here.
• For more information on the outcome of the consultation and the NRLA response keep an eye on our news site and social media channels.