Reforms to the energy performance of buildings regime: A summary

Introduction to the Reforms

The consultation conducted between December 2024 and February 2025, received over 1,600 responses from stakeholders and this partial response focuses on two key areas:

What Energy Performance Certificates (EPCs) measure.
When EPCs are required.

Further responses covering Display Energy Certificates (DECs), EPC data quality, and air conditioning inspection reports, are expected in 2026. The Government intends to implement new-style domestic EPCs by October 2026, subject to parliamentary approval.

What EPCs measure: Key changes

Current challenges
The existing metrics for EPCs, such as the Energy Efficiency Rating (EER) for domestic buildings and the Environmental Impact Rating (EIR) for non-domestic buildings, have been criticised for being incomplete and sometimes misleading.

Proposed metrics

For domestic EPCs, the Government plans to introduce four headline metrics:

Fabric performance: Assessing heat retention.
Heating system: Evaluating the efficiency and carbon impact of heating systems.
Smart readiness: Measuring the building’s capability to integrate smart technologies.
Energy costs: Providing cost-based information to consumers.

Secondary metrics will include energy demand (delivered energy) and carbon emissions. For non-domestic EPCs, the single carbon-based Environmental Impact Rating (EIR) will remain as the headline metric.

Stakeholder feedback

In general there was broad support for the introduction of multiple metrics, which provide clearer, actionable information for consumers and landlords.

Although concerns were raised about the practicality and cost of applying certain metrics, particularly for older and heritage buildings. Respondents also noted that smart readiness might not be feasible in rural areas with limited internet access.

Transition to new metrics

To ensure a smooth transition, the legacy EER metric will be retained alongside the new metrics for comparison. Clear guidance will be developed to help stakeholders understand and implement the new-style EPCs.

When EPCs are required: Expanding scope

Validity period

The current 10 year validity period for EPCs will be retained, with homeowners encouraged to voluntarily update EPCs after property upgrades.

EPC renewal on private rented buildings

A new EPC will be required when an existing one expires for private rented buildings, ensuring compliance with Minimum Energy Efficiency Standards ("MEES")

Marketing properties

A significant change will be the requirement for a valid EPC to be available at the point of marketing a property, rather than after marketing begins. This change ensures prospective buyers and tenants have timely information.

Houses in Multiple Occupation (HMOs)

The scope of EPC requirements will be expanded to include entire HMOs even when a single room is rented out. A 24-month transitional period will be introduced to allow landlords to comply with these new requirements.

Short-term rentals

Short-term rental properties will also be required to have valid EPCs, irrespective of who pays the energy bills, aligning the requirements with other rental properties.

Heritage buildings

The exemption for heritage buildings will be removed, meaning they will require valid EPCs when marketed, let, or sold. However, recommendations on EPCs will take into account the unique characteristics of heritage properties, and exemptions under MEES will remain for unsuitable measures.

Implications for stakeholders

Landlords

Landlords managing older or heritage properties in the private rented sector, have expressed concerns about the cost implications of the reforms. To alleviate these concerns, the Government aims to ensure flexibility in the application of MEES regulations.

Consumers

The reformed EPCs will provide clearer information, empowering consumers to make informed decisions about purchasing, renting, or upgrading properties. This is expected to drive demand for energy-efficient homes and reduce energy bills.

Energy assessors

The reforms are likely to increase demand for EPC assessments. The Government plans to collaborate with accreditation schemes to prepare assessors for the transition.

Lenders

Property valuations may be affected, particularly for older, less energy-efficient buildings. Borrowers may need to invest in energy efficiency improvements to meet the new standards and lenders should factor these costs into affordability assessments and loan conditions. The expanded scope of EPC requirements will increase the number of properties requiring certificates, offering lenders opportunities to incentivise green upgrades.

Next steps

The Government is committed to delivering new-style EPCs by October 2026. Further consultations will refine the implementation process and address outstanding issues. Stakeholder engagement will ensure the reforms are practical, effective, and aligned with broader regulatory requirements.

By introducing more comprehensive metrics and expanding the scope of EPC requirements, the Government aims to provide stakeholders with information to make more informed decisions about energy efficiency. While challenges remain, the hope is that the reforms drive meaningful improvements across the housing sector.