Domestic Private Rented Properties required to meet EPC Band C by October 2030
On the 7th February 2025 the Government published its consultation on Private Rented Sector MEES for England and Wales: Improving the energy performance of privately rented homes: 2025 update.
Yesterday, alongside the Warm Homes Plan announcement, Government also published its response to that consultation, setting out the next steps for the Minimum Energy Efficiency Standards (MEES) in the domestic private rented sector in England and Wales, whilst also confirming key elements of EPC reform, including the metrics that will underpin future compliance.
What did the Consultation Cover?
In early 2025, the Department for Energy Security and Net Zero (DESNZ) launched a consultation seeking views on proposals to strengthen energy performance requirements in the private rented sector (PRS) in England and Wales. This followed the government’s previous ambition for all new tenancies to reach EPC Band C by 2028, and for all tenancies to reach Band C by 2030.
In our response, Elmhurst highlighted areas where the proposals could be strengthened and clarified to support practical implementation and successful delivery. Read more here >
What is the Government’s Response to the consultation?
Based on the published outcome by Government, the following has been confirmed:
MEES to be uplifted to equivalent of EPC Band C with a single compliance deadline of 1st October 2030
As proposed, the outcome confirms that PRS MEES will be uplifted to the equivalent of EPC Band C, with a single compliance deadline of 1st October 2030 for all tenancies in England and Wales. Homes that already hold an EPC at Band C will be treated as compliant under the new regulations until that certificate expires, including properties graded EER C or above on EPCs issued before 1st October 2029.
Where a property is not rated EER C or above by 1st October 2029, landlords will need to carry out improvements to meet the new EPC metric standards by 1st October 2030. To inform these upgrades, landlords must first commission a new EPC showing the updated metrics. Once works are complete, a post-retrofit EPC will also be required by 1st October 2030 to demonstrate compliance.
New Metrics for compliance confirmed through EPC Reform changes
As confirmed by Government yesterday, the new headline metrics for EPCs will be as below, therefore affecting the requirements for future MEES regulations:
- Energy Cost (EER to remain as a legacy metric)
- Fabric Performance
- Heating System Efficiency
- Smart Readiness
In the initial consultation, Elmhurst reaffirmed our position that cost, carbon and energy consumption should remain as the core metrics on the EPC, with the new proposed metrics as secondary, rather than headline indicators. Whilst we understood fabric performance, heating system efficiency and smart readiness as useful additions, there is risk of overcomplication in how these metrics are understood and implemented.
It is paramount that clear guidelines and robust support is now provided to ensure landlords understand their obligations under these new metrics.
Application of New Metrics for MEES Compliance – “A Dual-Metric Standard”
The application of these metrics for MEES compliance is complex but also provides good flexibility for landlords to meet the requirements. The ways in which a landlord can meet their obligations under the new MEES regulations are as follows:
The property must meet the required standard for Fabric Performance
Then either the required standard for
Heating System Efficiency OR Smart Readiness
Cost Cap to remain at £10,000
The cost cap will remain at £10,000, rather than being increased to £15,000 as proposed and supported by Elmhurst, on the basis that there were adequate safeguards in place. A new ‘Property Value Adjustment’ exemption will apply to homes valued below £100,000, setting a lower maximum spend requirement equivalent to 10% of the property’s value.
Elmhurst believes the cost cap could have been increased, provided it was supported by appropriate safeguards, clear communication, and robust exemption management, to better reflect the scale of ambition to improve the UK’s housing stock.
Retaining the cost cap at £10,000 may limit what some landlords can achieve, particularly where more extensive works are needed to meet the requirements. However, it also reduces the risk of landlords exiting the market due to higher costs, which could in turn impact housing supply.
Cost Cap Exemptions
Landlords will still be able to apply for a cost cap exemption where they have spent £10,000 and the property still does not meet the required rating. This exemption will last for 10 years, and the number of exemptions available will be increased. Once the regulations take effect, eligible improvements funded by landlords from October 2025 will also count towards the cost cap.
Increased Enforcement and Maximum Fines
Government has confirmed a stronger enforcement approach for the uplifted PRS MEES, setting the maximum fine at £30,000 per property, per breach. The intention is to act as an effective deterrent and avoid a scenario where landlords are incentivised to ignore the rules because penalties are similar to, or lower than, the cost of compliance.
Short-Term Lets
Short term-lets will not be required to meet the EPC C by 2030. Although Elmhurst felt short-term lets should not be exempt, Government considers the sector operates differently to long-term renting, with nuances that need further assessment before applying an energy efficiency standard. Government is also prioritising MEES as a tool to reduce fuel poverty in the PRS, something short-term let occupants are not typically at risk of, while keeping the position under review.
Caroline Postles, Existing Dwellings Technical Team Manager for Elmhurst comments:
“We welcome the Government’s confirmation that Domestic PRS MEES will be uplifted to the equivalent of EPC Band C by 1st October 2030. A single compliance deadline provides much-needed clarity and gives landlords a realistic timeline to plan improvements.
It’s also clear that this is a difficult regulation to get right, particularly as EPC reform introduces new headline metrics, Fabric Performance, Heating System Efficiency and Smart Readiness and a more complex route to compliance. With new EPCs required before works and post-retrofit to demonstrate compliance, landlords will need clear, consistent information to understand what is expected and what actions will deliver the right outcome. Getting communication and guidance right will be vital to successful delivery, and Elmhurst will continue to support the sector through training, technical expertise and ongoing engagement as the details are implemented.”