What do we mean by “EPC C by 2030”?
The Government has delivered on its September announcement by releasing a consultation on proposed changes to Minimum Energy Efficiency Standards (MEES), set to impact the private rented homes in England and Wales.
This announcement forms part of the government’s wider Warm Homes Plan, which aims to upgrade 5 million homes across the country.
With the key headline from the consultation is the uplifting of current minimum energy efficiency standards, from Energy Performance Certificate (EPC) rating E all the way to EPC Rating C (or equivalent) by 2030.
2030 being the proposed date in which domestic landlords will need to achieve this by.
This proposal will expect to uplift 52% of private rented homes in England to a new EPC standard, whilst also saving tenants £240 per year (on average) on their energy bills.
Why is an Uplift to MEES required?
The Minimum Energy Efficiency Standards, or MEES for short, are regulations which establish a minimum EPC Rating, for domestic properties that are rented privately by landlords in England and Wales.
The current minimum standards have been in place since April 2018, preventing landlords of properties with an EPC rating of F or G from granting tenancies to new or existing tenants, as well as from continuing to let such properties, without a valid exemption.
Based on the government’s 2024 fuel poverty statistics, there remains a high rate of fuel poverty within the private rented sector, with 24% of these households deemed fuel poor (England Only). This represents approximately 1.1 million properties, which is twice the number of social housing properties deemed to be in the same condition. Improving the energy efficiency of a property will ensure less heating is needed, which in turn will reduce energy bills.
In addition to improving the quality of living for tenants, the government will also have its 2020 net zero targets in mind. In 2022, emissions from residential buildings accounted for 20% of total carbon emissions in the UK. The Climate Change Committee (CCC), has previously stated that the UK will struggle to meet its emissions targets “without near complete decarbonisation of the housing stock”.
What is being proposed?
A ‘Phased’ Timeline
The consultation proposes a phased approach to new standards, similar to what we saw when the original EPC standards were introduced to the private rented sector. This would see the requirement for ‘new tenancies’ to meet the higher standard from 2028, and ‘all tenancies’ to meet the higher standard by 2030.
Using new EPC Metrics
The government released a consultation to reform EPCs in January. A key change proposed for the EPC is how it appears to the end consumer. The current EPC appearance is recognisable from the colourful A to G rating scale presented at the top. For Domestic EPCs this simply represents the energy cost of a property – i.e. how cheap or expensive a home might be to run, based on a standard occupancy model.
Proposals made as part of this public consultation includes the introduction of a number of different metrics on EPCs to provide a more complete representation of building energy performance. With the introduction of new metrics likely to be in 2026, the government’s preferred approach is to require landlords to prioritise meeting a standard set against a fabric performance metric (the thermal performance of a building’s envelope), which the government believes is likely to require similar improvement measures as meeting an EPC C on current EPCs.
Following this landlords would then need to meet a secondary standard set against either the proposed heating system metric or the smart readiness metric. This could be determined by the landlord who would decide what is best for their property. The consultation states:
“This would enable the policy to deliver significant bill savings for tenants and improve the thermal comfort of privately rented homes, whilst also encouraging the decarbonisation of heating and improved flexibility in the energy use of buildings. Using new metrics in this way would mean landlords would be required to install measures that could improve the building’s heat retention, reduce the energy required to operate the building’s heating systems, and enable the occupier to optimise their energy use, to maximise the overall energy efficiency of the building and reduce its running costs.
However, government recognises that this is just one approach to utilising new metrics and this consultation seeks views on alternative approaches.”
Furthermore, properties that are already rated A-C before the proposed introduction of new EPCs in 2026 would be considered compliant until they expire. For properties that remain below EPC C following reforms to EPCs in 2026, it is proposed that landlords of these properties would be required to commission a new EPC before taking action to comply with the higher standard.
Increase of Cost Cap to £15,000
The government is proposing a big increase to the cost cap, from the current £3,500, to £15,000 per property. This means that the maximum amount landlords are required to invest in the property overall, to meet both the fabric performance standard, and either the smart readiness or heating system standard would by £15,000. The government currently estimates that it will take between £6,100 to £6,800 to improve a property to the required standard.
Landlords will still be able to register an exemption if the cost to improve their property would take them over the £15,000 cap. At present, this particular exemption would be valid for 5 years. However, the government is proposing to double the exemption period for the cost cap to 10 years.
The consultation also explores whether an alternative cost cap figure would be more appropriate. The original 2020 MEES consultation proposed a £10,000 cost cap at the time.
A Review of Exemptions
Existing regulations allow Landlords to register an exemption in order to remain compliant with MEES regulation, despite their property not meeting the required standards. Based on the proposal, landlords will still have the facility to do this, however, the government is asking if they are still suitable and whether new ones should be introduced in light of the changes being proposed. The current exemptions include:
- ‘All relevant improvements made’ exemption
- High cost exemption
- Wall insulation exemption
- Third-party consent exemption
- Property devaluation exemption
The government is considering the introduction of a new affordability exemption, given the significant increase to the cost cap, which would reduce the required investment per property to £10,000 should the £15,000 cost cap be agreed. However, the government admits that designing a “fair and effective” affordability exemption is not simple, which is why it is seeking views on the best approach to this or whether, in fact, it should be introduced.
Increase to fines
Under the current regulations the maximum amount landlords can be fined for not complying with MEES is £5,000 per property. The government’s preferred position is that the fine level for future MEES standards is set at £30,000 per property, and per breach of the regulations.
What does “EPC C by 2030”, mean for you?
If you rent or own your home, or are a landlord, it can be confusing to understand what’s expected from you. If you require any clarity on how to achieve EPC C by 2030, please don’t hesitate to reach out to Eco Assessment Solutions. We can provide some advice to get you started and well on your way to meeting this target.
And if you would like some further reading about how to achieve EPC C by 2030, please see the resources below:
Full Consultation – Improving the energy performance of privately rented homes: 2025 update – GOV.UK
Elmhurt Energy Support for Homeowners (even if you rent or are a landlord there is still invaulable advice for you) – Information for Homeowners – Elmhurst Energy
Fuel Poverty Report 2024 – https://www.gov.uk/government/statistics/annual-fuel-poverty-statistics-report-2024