The Government has recently consulted on proposed changes to the Minimum Energy Efficiency Standards (MEES) for rental properties. It’s important to note that these proposals have not yet been finalised and could still change following the consultation process.
At Horizon Lets we are keeping a close eye on these developments to ensure landlords understand what may be coming and how best to prepare.
What are the proposed new MEES rules?
The Government has proposed that all privately rented properties must achieve an EPC rating of C by 2030 unless a valid exemption applies.
Alongside this a new EPC assessment methodology is expected to be introduced later this decade. Instead of relying on a single headline energy efficiency score properties will be assessed using several different metrics.
The proposed system will include:
- Fabric efficiency – how well the property retains heat
- Heating system efficiency – focusing on environmental impact and low carbon heating
- Smart readiness – whether the property supports smart energy technology
- Energy cost indicator – an estimate of running costs for the property
For the purposes of meeting MEES requirements the fabric metric will be the primary standard. Landlords will then be expected to meet one of the secondary metrics either improving the heating system or meeting the smart readiness standard.
Exactly how these metrics will be assessed is still being finalised and the Government has opened a consultation to determine the final approach.
Under the proposals all private rented homes will need to meet the new standard by October 2030.
Will EPC assessments change?
Yes. EPC assessments are expected to change significantly once the new system is introduced.
Currently EPC ratings are based on energy costs per square metre which has been criticised for relying on outdated assumptions and often favouring gas boilers over more environmentally friendly heating systems.
The proposed system will instead measure several factors including:
Fabric efficiency
This measures how well a property retains heat through insulation, windows, and overall construction.
Heating system
This assesses the environmental impact and efficiency of the heating system and is expected to favour low-carbon technologies.
Smart readiness
This considers whether the property can support smart energy technology, such as solar panels or smart energy controls.
Energy cost indicator
This estimates how expensive the property is to run, although this metric will not be used for MEES compliance.
What if my property already has an EPC rating of C?
If your property already has an EPC rating of C or above it will remain valid until the certificate expires.
This means you will not need to make immediate improvements provided your EPC remains in date.
EPCs issued before 1 October 2029 will continue to use the current assessment system and remain valid for up to 10 years. If a property achieves an EPC C before this date it will generally be treated as compliant under the new system for the remainder of that certificate’s validity.
EPCs issued after 1 October 2029 are expected to use the new assessment methodology, which may result in different ratings.
What if my property is currently below EPC C?
For now the minimum EPC requirement remains at E and there will be no immediate operational changes for landlords.
However properties will need to be upgraded to EPC C by 2030 unless an exemption applies. Failure to comply could result in penalties.
If your property is already close to a C rating it may be worth considering improvements sooner rather than later and obtaining a new EPC before the new assessment system is introduced.
How can landlords improve energy efficiency?
The Government has indicated that a “fabric first” approach will form the foundation of the new standards. This means improving the property’s ability to retain heat before focusing on heating technology.
Common improvements may include:
- Upgrading insulation
- Improving ventilation
- Installing energy-efficient windows or glazing
- Sealing drafts and improving overall building fabric
Once the primary fabric standard is met landlords will then need to meet one of the secondary requirements.
For many landlords the smart readiness route may be the simplest option. This could involve installing smart energy devices or renewable energy technology such as solar panels. Grants are increasingly becoming available to support these upgrades.
Alternatively landlords could upgrade to low carbon heating systems such as heat pumps. The Government’s Boiler Upgrade Scheme (BUS) currently offers grants of up to £7,500 to help cover the cost of installing heat pumps.
Can landlords regain possession to carry out upgrades?
If significant works are required and it is not possible to reach an agreement with the tenant landlords may be able to rely on Ground 6 (redevelopment) to regain possession of the property.
However in many cases it may be easier to:
- Schedule upgrades during void periods, or
- Work with tenants to arrange access for improvement works.
What is the Home Energy Model?
The Home Energy Model (HEM) is expected to replace the current RdSAP system used for EPC assessments.
This model is intended to be more transparent and accurate, reducing reliance on assumptions and measuring energy efficiency more closely in relation to heat loss and carbon emissions.
The Government previously consulted on this model in 2023 and has since opened a further consultation as part of the wider EPC reform process.
What is the proposed cost cap?
The cost cap sets the maximum amount landlords would be expected to spend on improvements to meet MEES standards.
Currently the cap is £3,500 but the Government has proposed increasing this to £10,000.
If the work required to bring a property up to standard exceeds this cap landlords may be able to apply for an exemption.
Only spending from October 2025 onwards will count towards the proposed £10,000 limit.
Properties valued below £100,000 are expected to have a lower cost cap although the exact figures will depend on property value.
Will earlier improvements count towards the cost cap?
Yes. Any qualifying work carried out from October 2025 onwards will count towards the £10,000 cost cap.
Are there penalties for non-compliance?
Yes. The Government has proposed increasing the maximum penalty for failing to comply with EPC requirements.
From 2028 landlords without a valid EPC could face fines of up to £30,000, compared to the current maximum penalty of £5,000.
What grants or funding are available?
Several funding options are either already available or expected to launch in the coming years.
One of the key upcoming schemes is the Warm Homes: Local Grant, which is expected to be available through most local authorities from 2025.
The Government has also indicated that new loan schemes will be introduced to help landlords fund energy efficiency improvements, although full details are still to be confirmed.
It is also worth checking with your local authority as some councils offer additional funding schemes to support property upgrades.
What is the timeline for these changes?
The key dates currently proposed are:
- October 2029 – New EPC assessment methodology introduced
- 2030 – All privately rented properties must reach EPC C unless exempt
With periodic tenancies likely to become the standard under wider rental reforms, landlords should begin planning now to ensure their properties meet the new requirements by the 2030 deadline.
This may involve assessing your properties, securing funding completing necessary improvements, and obtaining updated EPC certificates.
Related Articles
- Should I Let My Tenant Decorate?
- The Importance Of Building A Good Relationship With Your Tenants
- What Landlords Should Know About ‘White Goods’
- Starting your Property Portfolio
- Landlord’s Guide to Letting Property
