Nikka Sulton

The government says proposed changes to Energy Performance Certificates (EPCs) will take the individual characteristics of properties into account, rather than applying the same approach to every home.

Energy Minister Martin McCluskey made the comments in response to a parliamentary question about how landlords would be treated under the planned reforms.

The government intends to require privately rented properties to meet an EPC C standard by 2030, although the way energy efficiency is assessed is set to change.

New Exemptions Planned for Landlords

The government has acknowledged that the current EPC system does not provide a sufficiently complete picture of a property’s energy performance.

At present, EPC ratings are largely based on energy use per square metre and the amount of energy lost through features such as inadequate insulation.

Under the proposed system, four main measures would instead be used:

Fabric performance
Heating system
Smart readiness
Energy cost

Energy use and carbon emissions would continue to be provided as additional information.

The changes have raised questions over whether landlords could face unnecessary costs if they make improvements based on the existing system before the new metrics and rating boundaries are finalised.

Liberal Democrat MP Liz Jarvis asked the government what protections would be available for landlords who had already made investment decisions before the final EPC methodology was published.

Property Characteristics to Be Considered

McCluskey said the government is developing an enhanced exemptions system designed to account for differences between individual properties.

He also confirmed that landlords will have more than one route towards meeting the proposed standards.

Properties that reach an EPC C rating or above under the current system before 1 October 2029 will be protected under a ‘grandparenting’ arrangement. These properties will continue to be treated as compliant until the existing EPC expires or is replaced.

The government has also confirmed that there will be a maximum amount landlords are expected to spend on energy-efficiency improvements.

Further details about the exemptions and spending requirements are expected to be provided through future guidance and regulations.

Older Homes Present a Particular Challenge

The proposed reforms are likely to be particularly important for landlords with older or traditionally constructed properties.

Industry organisations have previously warned that applying the same energy-efficiency requirements to every type of building could create practical problems.

Propertymark has argued that some older properties may be extremely difficult or expensive to upgrade to an EPC C rating using conventional improvements.

Timothy Douglas, head of policy and campaigns at Propertymark, said the organisation supports efforts to improve energy efficiency but remains concerned about the practical implications of the proposed requirements.

Older properties, including pre-1919 homes, solid-wall buildings and heritage properties, can have construction characteristics that make retrofitting more complicated.

In some cases, measures recommended under standard energy-efficiency assessments may not be technically appropriate. They could also risk damaging the building’s fabric or produce relatively small improvements compared with the cost of carrying out the work.

One Approach May Not Suit Every Property

The government’s proposed exemptions regime appears intended to address some of these concerns.

The need to account for individual property characteristics could be significant for landlords whose homes cannot easily be upgraded using standard measures.

For example, improving insulation or changing heating systems may be relatively straightforward in some modern properties but considerably more complicated in older buildings.

Propertymark has therefore called for a more flexible approach, with Douglas warning that the EPC C requirement could remain unrealistic for certain types of homes without continued financial support.

What Does This Mean for Landlords?

The reforms mean landlords should not necessarily assume that the current EPC rating system will remain the basis for compliance until 2030.

The government is planning a new assessment method, alongside a maximum spending requirement and wider exemptions.

For landlords considering energy-efficiency improvements, the changes could make the timing and type of investment particularly important.

Until the final metrics, band boundaries and regulations are published, there remains some uncertainty over exactly how individual properties will be assessed.

However, the government’s latest comments suggest that the final system is expected to recognise that not all rental properties can be improved in the same way.

The key issue for landlords will be whether the final exemptions and spending limits provide enough flexibility for older and more challenging properties while still delivering the government’s wider energy-efficiency objectives.