Consultation Phase Launched for New Minimum Energy Efficiency Standards (MEES) and EPC Regulations for Landlords

This is the first of a two-part article exploring the upcoming changes to minimum energy efficiency standards for rental properties. In this part, we focus on the proposed regulations and timeline, while the next article will cover penalties, cost caps, and transition arrangements. You can check your home’s current EPC rating and certificate status on the government’s register. Certificates are valid for 10 years.

For rental properties in England and Wales, both the Energy Performance Certificate (EPC) assessment system and the minimum energy efficiency requirements are set to change as early as 2026.

Since April 2020, privately rented homes must have an EPC rating of at least E to be legally let. The government had initially proposed raising the minimum rating to C by 2025, but this policy was scrapped in favour of a revised timeline yet to be confirmed.

Last week, the government launched a consultation on its proposed regulations for new minimum energy efficiency standards. Stakeholders have until 2nd May 2025 to submit their views.

Key Proposed Changes to EPC Ratings

The current EPC system is based solely on the cost of heating a home. From 2026, the government’s preferred approach suggests introducing a new assessment framework based on three key metrics:

1. Building Fabric – The materials used in construction (e.g., brick vs. concrete), window glazing (single vs. double), and insulation type and location

2. Heating System Efficiency & Emissions – The type of boiler and radiators in place, as well as how water is heated

3. ‘Smart Readiness’ – Features that enable occupiers to optimise energy use, such as smart meters

These changes aim to promote long-term energy efficiency, encourage decarbonisation of heating and reduce energy costs for tenants.

Proposed Implementation Timeline

The government’s proposed timeline suggests:

• The revised EPC assessment system will be introduced in 2026

• Properties must comply with the new minimum standards by 2028 for new tenancies

• Compliance will be required for all rental properties by 2030

A crucial point to consider is the impact of the Renters’ Reform Bill, which abolishes fixed-term tenancies. After 2028, tenants can give just two months’ notice to vacate, meaning landlords may need to complete upgrades within that timeframe before re-letting their property.

What’s Next?

In our next article, we’ll cover the penalties for failing to meet new standards, cost caps for improvement works, and transition arrangements for properties currently rated A, B, or C under the existing system.

If you’re a landlord with questions about how these changes might affect your properties, contact us.

Renters' Rights Bill Moves to Key Report Stage

The Renters’ Rights Bill is set to reach its report stage in mid-January, marking a major milestone on its path to becoming law. Starting 14th January, MPs will examine the legislation line by line.

Introduced in September 2024, key features of the new legislation will:

• Abolish Section 21 evictions and transition all assured shorthold fixed-term tenancies to periodic tenancies

• Prohibit rental bidding and ensure landlords and agents publish a fixed asking rent

• Create a Private Rented Sector Database for landlords

• Apply the Decent Homes Standard and introduce ‘Awaab’s Law' to address serious hazards

• Make it illegal to discriminate against tenants based on receiving benefits or having children

• Strengthen tenant rights to request pets

• Expand local authority enforcement powers and increase penalties for non-compliance, including rent repayment orders

Propertymark, the leading membership body for property agents said, ‘Given Labour’s prioritisation of this legislation, the report stage is expected to be expedited, potentially concluding within a single day.” They added, ‘Overall, there has generally been an agreement between all party MPs on most elements of the Bill.’

The Report Stage aims to:

• Refine and improve the bill based on previous discussions and scrutiny

• Address any unresolved concerns or issues identified earlier

• Ensure the bill is robust and fit for purpose before moving to the next stage

During the Bill’s second reading in October 2024, Deputy Prime Minister Angela Rayner said: ‘I am determined to get this Bill into law as soon as possible.’ There have been a number of proposed amendments since the first sitting and the government have agreed to 40 of those 95, all of which were minor and more technical points.

After the Report Stage, the Bill will proceed to a Third Reading where MPs will debate its final form without making further changes. If the Bill passes the Third Reading, it will move to the House of Lords before receiving Royal Assent to become law.

On a recent industry webinar, Rightmove’s Legal & Compliance Director, David Cox, also underlined the swift progress of the legislation which could come into force as early as July 2025.

We’re keeping our landlords and tenants informed of the changes throughout 2025. You can also stay updated by subscribing to our newsletter below. The government’s full guidance on the legislation is available here.

The New Renters' Rights Bill

The UK government's Renters' Rights Bill, introduced in September 2024, aims to enhance tenant protections and address longstanding issues in the private rented sector. Key provisions of the bill include:

• Abolition of Section 21 Evictions: The bill seeks to eliminate 'no-fault' evictions under Section 21, preventing landlords from terminating tenancies without a valid reason. This change is intended to provide tenants with greater security and stability in their homes.

• Regulation of Rent Increases: The legislation proposes limiting rent increases to once per year and requires that any proposed increase be in line with market rates. Tenants will continue to have the right to challenge unjustified rent hikes through a tribunal.

• Introduction of a Decent Homes Standard: The bill introduces a 'decent homes standard' for private rentals, ensuring properties meet minimum conditions regarding repair and maintenance. This measure aims to improve living conditions and hold landlords accountable for the quality of their properties.

• Ban on Discriminatory Practices: The legislation seeks to prevent discrimination against tenants based on their receipt of benefits or family status, ensuring fairer access to housing for all applicants.

• Pet Ownership Rights: Tenants will have the right to request permission to keep pets in their rental properties and landlords cannot unreasonably refuse such requests. This provision acknowledges the importance of pets to many renters and aims to make pet ownership more accessible.

• Establishment of a Landlords Ombudsman Service: To streamline dispute resolution, the bill proposes the creation of an ombudsman service, offering tenants a means to resolve issues without resorting to the court system.

Implications for Landlords…

Whilst the Renters' Rights Bill has been welcomed by tenant advocacy groups, some landlords have expressed concerns about the increased regulations and potential challenges in managing their properties. It's essential for landlords to familiarise themselves with the proposed changes and assess how they may impact their rental practices.

Naturally, as the bill progresses through Parliament, we expect amendments. It is essential that both tenants and landlords stay informed about the developments to understand how the new legislation will affect them.

…And what it really means:

• Abolition of Section 21 Evictions: Landlords will still be able to claim possession of their properties to sell or move in to.

• Regulation of Rent Increases: Rent increases are already permitted and restricted to once a year and will reflect market demand.

• Introduction of a Decent Homes Standard: Landlords already keeping a professionally managed and maintained property for tenants will be unaffected.

• Ban on Discriminatory Practices: Agents and landlords should not be discriminating against any demographic anyway and we continue to work with all tenants.

• Pet Ownership Rights: This is a new consideration and landlords cannot request higher deposits, it comes down to finding responsible tenants and managing the process.

• Establishment of a Landlords Ombudsman Service: As members of The Property Ombudsmen, Maplewood Property continue to follow their guidance. Landlords could be asked for a similar registration. This might alleviate landlord registration requirements with some councils and centralise the process.
  
  We’ll be keeping everyone up-to-date with the changes as the bill progresses into law in 2025. If you’d like to stay informed, you can subscribe to our newsletter.