EPCs Are Changing – What Landlords Need to Know

The UK government remains committed to achieving Net Zero by 2050, and as part of this effort, major changes are being proposed to Energy Performance Certificates (EPCs). These changes aim to create a more accurate and useful system that reflects carbon emissions, energy efficiency, and the impact of different heating systems. The Government launched a consultation in December 2024 about the methodology for producing EPCs, this consultation closed to responses on 26 February. Heres what we know.....

Why Are EPCs Changing?

Currently, EPC ratings are largely based on energy cost, which often penalises electric heating because electricity is more expensive than gas. However, electricity is now significantly cleaner, with over 51% of UK electricity in 2024 coming from renewable and nuclear sources.

The proposed changes aim to:
✔ Shift focus from cost-based ratings to carbon emissions and efficiency.
✔ Encourage better insulation and draft-proofing to reduce energy waste.
✔ Recognise the value of smart energy use and self-generated electricity (such as solar panels and battery storage).

Key EPC Reforms Under Consultation

The government has proposed a range of changes to how EPCs are calculated and used, including:

🔥 1. Heating System Efficiency Will Matter More

Gas and oil boilers will receive lower ratings due to their reliance on fossil fuels.
Electric heating will be rated higher because it has a lower carbon footprint.
Heat pumps will be the preferred option, as they are more energy-efficient than traditional electric or gas heating.

🏡 2. Better Insulation = Higher EPC Scores

EPCs will place greater emphasis on building fabric, rewarding good insulation, draft-proofing, and double glazing.
Well-insulated homes will require less heating, reducing both energy costs and carbon emissions.

⚡ 3. Smart Technology Will Be Considered

Properties will be assessed for "smart readiness", meaning how well they can shift energy usage to off-peak hours (e.g., using smart plugs, battery storage, or flexible car charging).
Smart homes will score higher on EPCs because they reduce strain on the energy grid.

📉 4. Shorter EPC Validity Periods

Currently, EPCs are valid for 10 years. The government is considering reducing this to ensure ratings stay up-to-date.
Options range from less than 2 years to 5 years, making EPCs a more accurate reflection of a property’s current energy efficiency.

🏠 5. EPCs Required for More Rental Properties

At present, an EPC is only required when renting a whole property.
New proposals suggest that individual room lets will also require an EPC, ensuring tenants understand a property's energy efficiency before renting.

💰 6. Potential Financial Implications for Landlords

If the Minimum Energy Efficiency Standards (MEES) change alongside EPC reforms, some landlords may need to upgrade heating systems or improve insulation to continue letting their properties.
Grants of £7,500 for heat pumps are currently available, but it is unclear whether these will remain in place after 2026.

How Should Landlords Prepare?

✅ Stay informed – The final regulations are expected in 2026, but planning ahead will help you avoid costly last-minute upgrades.
✅ Consider insulation improvements – Simple measures like better loft insulation or double glazing could help future-proof your property.
✅ Explore heating alternatives – If you’re due to replace a boiler, look into heat pumps or other energy-efficient options.
✅ Think smart – Smart thermostats, battery storage, and off-peak energy usage will likely contribute to higher EPC scores.

Final Thoughts

EPC ratings are moving away from just cost-based measures toward a more comprehensive assessment of energy efficiency, carbon emissions, and smart energy use. While these changes could mean higher upfront costs for landlords, they also present an opportunity to future-proof properties, reduce tenant energy bills, and increase rental appeal.

If you’re unsure about how these changes might impact your rental properties, our expert team is here to help. Contact us today for professional advice!

📞 01934 512537 | ✉ lettings@ilesandjenkin.com