Labour has unveiled plans to reform Energy Performance Certificates (EPCs) and the Minimum Energy Efficiency Standard (MEES) regulations, with a focus on improving energy efficiency in private rented homes by 2030. The move comes as part of a broader push towards greener housing and energy-saving measures, with landlords expected to upgrade properties or risk being unable to rent them out.
EPCs and MEES set for a revamp
The Department of Energy and Net Zero has confirmed that both EPCs and the MEES system will undergo significant changes to make them more accurate, reliable, and easier to understand. EPCs, which rate the energy efficiency of properties on a scale from A to F, have faced criticism for being confusing and often inaccurate. These certificates are essential for landlords to demonstrate compliance with the MEES regulations, which set minimum energy efficiency standards for rental properties.
In response to these concerns, Labour has committed to launching a consultation with proposals aimed at improving the current EPC system. The overhaul is seen as necessary, especially with Labour’s promise to mandate that all rental properties achieve a minimum EPC band C rating by 2030.
Financial support for landlords
Labour’s new proposals include substantial financial support for landlords to help them meet the upcoming energy efficiency standards. Landlords will be eligible for grants to cover the costs of upgrading their properties, with funding capped between £15,000 and £30,000 depending on the type of upgrades required. Portfolio landlords will be expected to cover half the cost of upgrades for additional properties, with assistance provided through the re-launched Warm Homes: Local Grant scheme.
However, this financial aid will only be available to properties located in designated “eligible postcodes,” covering roughly half of the UK. This postcode-based approach aims to target areas most in need of energy efficiency improvements.
Industry response to Labour’s plans
Stuart Fairlie, Managing Director of Elmhurst Energy, the UK’s leading provider of training and accreditation for energy efficiency professionals, welcomed Labour’s clarity on the issue. He noted the importance of these reforms, especially for landlords of properties with lower EPC ratings.
“This is an important step from Labour that gives much-needed direction for minimum energy efficiency for domestic homes that are rented,” said Fairlie. “A 2030 EPC C deadline and consultation on Minimum Energy Efficiency Standards (MEES) Regulations offers the clarity that many private rented sector landlords have been asking for – and delivers legal impetus to others.”
Fairlie emphasised the urgency of addressing the least energy-efficient properties: “It’s those properties with an EPC rating of D to G we must really focus on, fast, as tenants living in these homes face fuel bills that are almost three times higher than those in homes rated EPC C.”
Implications for landlords and tenants
For landlords, the 2030 EPC C deadline will require swift action, especially for those with older or less energy-efficient properties. Failure to comply could result in properties being deemed unfit for rental, with significant legal and financial consequences. While the government’s financial support will ease some of the burden, the challenges for landlords outside of “eligible postcodes” could be substantial.
For tenants, these reforms could bring long-term benefits. Energy-efficient homes not only reduce environmental impact but also significantly lower fuel bills. With fuel poverty a growing concern, especially in poorly insulated homes, Labour’s commitment to upgrading rental properties could improve living conditions for millions across the UK.
