The Government has committed to an overhaul of both Energy Performance Certificates (EPCs) and the MEES system that underpins them, it has been announced.

The Domestic Minimum Energy Efficiency Standard (MEES) Regulations set a minimum energy efficiency level for domestic private rented properties, while EPCs are the certificates that are issued to landlords to prove they have reached them, banded from A to F.

But EPCs in particular have been heavily criticised by landlords largely because they are confusing and difficult to read, and are too often inaccurate.

Consultation

The Department of Energy and Net Zero has revealed that it is to launch a consultation with “proposals for improvements to Energy Performance Certificates to make them more accurate and reliable” while at an industry conference yesterday it was revealed by its officials that the MEES regulations are also to get an overhaul following the inevitable consultation, due to start in December this year.

The dual action to improve both EPCs and MEES follows Ed Miliband’s promise to force landlords to upgrade their properties to a minimum EPC band C by 2030 or face being unable to rent them out legally.

Financial incentive

There is to be significant financial carrot involved – landlords will be able to fully fund the cost of upgrading one property capped at between £15,000 and £30,000 depending on the kind of upgrades being implemented, but landlords will have to pay half the cost of subsequent properties, all funded through the re-launched Warm Homes: Local Grant scheme.

But properties will have to be within one of the eligible postcodes published by the Government, which cover around half of the UK, and its guidance on the new scheme points out that this is a more generous offer than made available under [previous' schemes in recognition of low uptake in the tenure to those schemes.

Reaction

Stuart Fairlie (pictured), MD of Elmhurst Energy, the leading provider of training and accreditation for energy efficiency professionals, says: "This is an important step from Labour that gives much-needed direction for minimum energy efficiency for domestic homes that are rented has been lacking since they were scrapped last September by former PM Rishi Sunak.

"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.

“In 2021, 42% of private rented properties were EPC D – that’s 1.8 million. These landlords should be encouraged as most aren’t likely to have to take huge steps to move to a C. And in 2022, almost 45% of private rented properties in England already had an Energy Performance Certificate (EPC) rating of at least a C.

“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.

“It is great to see clarity for domestic homes, but equally we would like clarity for non-domestic buildings, so that all rented buildings are more energy efficient.”