On the 22nd January, the UK government announced what it has called its ‘Warm Homes Plan’, or which most of us in the private rented sector would more commonly associate with minimum energy efficiency standards (MEES). This confirms that private landlords in England and Wales will need to make sure their properties achieve an EPC rating of C or above by 1 October 2030, for all tenancies, unless they have an exemption.
The measures outlined are aimed at reducing energy bills and accelerating home improvements via a combination of updated standards, investment and financing.
There has been much speculation in the lead up to the announcement, especially in relation to the spending cap and timeframes.
In these respects, there is some better news for landlords both in terms of the cost cap being reduced somewhat, from the proposed £15,000 to £10,000, and the deadline being extended to 2030 (not 2028, as we suspected) and we can thank ARLA Propertymark, our regulatory body, for successfully lobbying on our behalf on these points.
So, the key headlines of the announcement are as follows:
- EPCs will have four clear metrics: energy cost, fabric performance, heating systems, and smart readiness
- A property can meet the compliance requirements using either a heat or smart metric
- The 10-year validity period will remain
- A low value exemption will apply if £10,000 exceeds 10% of the property’s value
- Money spent on energy efficiency improvements since October 2025 will count towards the spending cap. Properties achieving EPC C before October 2029 will be deemed compliant until the certificate expires.
- There are grants available for hydraulic and heat pumps, as well as biomass boilers for eligible rural properties
- Currently, short term lets are outside of the policy, but the government will consult on this
The metrics for the new EPC regime, titled Home Energy Model (HEM) is currently still in consultation, which closes on 18 March 2026. This will replace the current Energy Efficiency Rating methodology and will be launched later in 2026 and will be compulsory for new EPCs from 1 October 2029.
There is a great deal to chew through here and below is a link to the government website.
Home Energy Model: Energy Performance Certificates – GOV.UK
We are hosting a seminar on 26 February 2026, where one of our guest speakers is Richard Dalton, who is an EPC assessor. He will be there to talk through the new changes and offer advice for landlords. No doubt there will be plenty of questions for him and we will provide further information following the seminar, to give guidance to our landlords on the best way forward. Please do let us know if you would be interested in attending the seminar and we would be delighted to send you further information.
Equally, if you have any specific questions surrounding these changes that you might like to discuss with us, please do not hesitate to get in touch.
Tom Woods MARLA MNAEA
Head of Residential Sales and Lettings 01962 763905
