Consultation Phase Launched for New Minimum Energy Efficiency Standards (MEES) and EPC Regulations for Landlords - Part 2
/In the first part of this article, we explored the proposed changes to minimum energy efficiency standards for rental properties in England and Wales, including the shift to a new EPC assessment system and key implementation dates.
Energy Performance Certificates (EPCs) have long been a vital tool for homeowners and landlords, offering insight into how efficiently a property uses energy and where improvements can be made. With upcoming regulatory changes, EPCs are becoming even more crucial—not only for compliance but also for maintaining property value and reducing long-term running costs.
In this second part, we focus on what landlords need to know about penalties for non-compliance, cost caps for improvement works, and transition arrangements for properties with high current EPC ratings.
Penalties for Non-Compliance
The government is expected to introduce stricter enforcement measures for landlords who fail to meet the new minimum standards. Under the current regulations, landlords who let properties below an EPC rating of E can face fines of up to £5,000 per property. With the new standards, we anticipate:
Higher fines of £30,000 for failing to upgrade properties to the required level
Increased inspections and enforcement activity
Potential restrictions on letting non-compliant properties beyond 2028 (for new tenancies) and 2030 (for all tenancies)
The government’s consultation phase may determine the exact penalty framework, but landlords should be prepared for stricter compliance measures.
Cost Caps for Improvement Works
A key concern for landlords is how much they will be required to spend to bring properties up to standard. The government is likely to implement cost caps, similar to the current £3,500 cap for improving properties rated F or G.
Potential new cost caps could be £15,000 per property or £10,000 under an affordability measure based on the government’s workings indicating an average cost of £6,100 - £6,800 for improvements up to compliance levels. Properties that require works exceeding the cap will have to apply for an exemption.
Understanding these limits will be crucial for landlords planning energy efficiency upgrades. Investing in energy efficiency improvements now could not only prevent future costs but also enhance the long-term appeal and sustainability of a property.
Transition Arrangements for Properties Rated A, B, or C
For properties currently rated C or above under the existing system, landlords won’t need to take any action until the EPC expires. The certificate will remain valid until the EPC’s expiry date, which is typically 10 years after issuance.
However, once the new grading system is introduced in 2026, properties may be reassessed differently. If a property's rating falls below a C under the new system, upgrades will need to be carried out to meet the new requirements.
If a property is currently rated D or E and a landlord is planning to make improvements after the new assessment system is introduced in 2026, it is advisable to obtain a certificate under the new system first. This will establish a correct ‘starting baseline’ before undertaking any energy efficiency upgrades, ensuring compliance with the updated regulations.
What’s Next?
The government’s consultation period remains open until 2nd May 2025, giving landlords, tenants and industry professionals time to share their views. We will continue to monitor updates and provide further guidance as details emerge.
If you’re a landlord with questions about how these changes might affect your properties, contact us.