Since early 2024, the government has been engaged in ongoing consultations aimed at raising the energy efficiency standards required for domestic rental properties. If implemented, these proposals would mean that many landlords will need to ensure their properties meet a minimum Energy Performance Certificate (EPC) rating of ‘C’ or higher.
Although not every property will be affected, the scope of these changes is significant. Many landlords will be required to reassess the energy performance of their rental homes. In practical terms, this could mean carrying out upgrades such as draught proofing, improved insulation, or the installation of low-energy lighting.
What Are the Current Requirements?
Under the existing Minimum Energy Efficiency Standards (MEES), landlords must ensure their privately rented domestic properties achieve an EPC rating of at least ‘E’. Certain exemptions exist—for example, if no further improvements can be made, or if the cost of necessary works exceeds £3,500 (including VAT).
What’s Changing?
The proposed updates to MEES significantly increase the financial threshold. To meet the new ‘C’ rating, landlords could be required to invest up to £15,000 per property. While discussions are ongoing regarding potential exemptions (particularly around affordability), the sharp rise in the spending cap is expected to present challenges across the sector.
In addition, the range of properties affected will broaden. Houses in Multiple Occupation (HMOs) and other non-standard tenancy types may now fall within the scope of these regulations. Listed buildings and properties requiring tenant consent may still qualify for exceptions, but this will depend on the specific details of each case.
Increased Penalties and Enforcement Powers
One of the most notable aspects of the proposed changes is the significant increase in penalties. Renting out a non-compliant property for fewer than three months could incur a fine of up to £30,000—a stark contrast to the current penalty of £2,000. Further penalties for more serious breaches are still under discussion but are likely to be similarly severe.
Local authorities are also expected to gain enhanced enforcement powers. This may include greater legal backing to inspect properties, and discussions are ongoing about whether authorities will be permitted to publicly disclose non-compliant landlords.
What Should Landlords Do Now?
Now is the time to act. If you’re unsure of your property’s current EPC rating, arrange for an assessment as soon as possible. Planning ahead allows time to budget for any improvements needed to comply with the new requirements.
These changes are not yet in force, but preparation is key. Staying informed and proactive will help ensure compliance—and avoid unnecessary fines—when the regulations are introduced.
If you have concerns about how these proposals may impact you, or if you’d like to speak with one of our property law specialists, don’t hesitate to get in touch:
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