Major changes to EPCs coming in 2026

The way energy performance certificates (EPCs) are measured could be changed as soon as 2026.

The government has launched a consultation on proposed changes to the way EPCs are measured, which they claim will deliver a “more efficient and effective EPC system that works for landlords.”

The consultation is currently open and will run until February 26th

Measures to calculate EPCs

Under the current rules, EPCs are measured based on the amount of energy a property uses per square metre (e.g., for heating, lighting, etc.) and how much energy it loses (e.g., through poor insulation).

The energy assessor first calculates the property’s Standard Assessment Procedure (SAP) score, which is then used to determine the EPC rating.

However, the government proposes six potential metrics to calculate EPCs:

• Energy cost: helping individuals understand the financial implications of a building’s energy efficiency and make informed decisions about potential improvements
• Carbon: an estimate of the carbon emissions arising from the energy used in the building
• Energy use: offering insights into overall energy consumption and identifying areas for energy efficiency improvements
• Fabric performance: assessing the thermal performance of a building’s envelope and promoting the importance of well-insulated, comfortable, and energy-efficient spaces
• Heating system: providing information on the efficiency and environmental impact of a building’s heating source and encouraging the adoption of cleaner heating technologies
• Smart readiness: assessing a building’s potential to integrate smart technologies that can optimise energy consumption and the ability of consumers to benefit from cheaper smart tariffs.

The consultation says: “These metrics together convey the key, complementary aspects of building energy performance, allowing the user to distinguish where the home performs more or less well. Supporting people to keep their energy bills low has always been a key purpose of EPCs and the energy cost metric will provide this information.”

Changes to EPC validity

The consultation also proposes requiring a valid EPC throughout the tenancy.

The consultation says: “Currently in both the private and social rental sectors when an EPC expires, a new EPC is only required when a property is re-let and not when the same tenant renews or extends their lease.

“The presence of a valid EPC throughout a tenancy, rather than solely at point of marketing, would ensure landlords and tenants are equipped with accurate and up-to-date information.”

At present an EPC is valid for 10 years, however, the government is considering changes to this rule.

The consultation says: “We are proposing to introduce for private rental properties a new trigger point where an EPC is required for when the current one expires.

“As the Energy Efficiency (Private Rented Property) (England and Wales) Regulations (2015) only applies to private sector properties which are required, or are part of a building which is required, to have a valid EPC, these types of properties (where the EPC has expired, and the same tenant remains in situ) are not covered by the PRS Regulations.

“Requiring a new EPC for rented buildings when the existing one expires would therefore ensure most new lease renewals are captured within the scope of the PRS Regulations.”

Expanding EPC requirements for HMOs

For HMOs, the government is considering expanding EPC requirements.

The consultation says: “We are proposing to extend the scope of EPCs so that a valid one is required for an entire house in multiple occupation (HMO) when a single room within it is rented out, as currently the guidance states that an EPC is not required in this instance, only when the whole house is rented out.

“Mandating EPCs for HMOs when a single room is rented out will ensure that HMOs will need to comply with the requirements set out in the MEES Regulations if they did not have a valid EPC before this point.

“This would provide consistency across the private rented sector. As a result, we are proposing a 24-month transitional period for any HMO landlords newly brought into the scope of the regulations to obtain a valid EPC.”

Property118 will be doing a series of articles on the proposed changes to how EPCs are measured and how they will affect landlords.

Landlords can fill out the consultation here and landlords can read the full list of proposals here