Reforms to the Energy Performance of Buildings
Stakeholders in the property industry await the outcome of the government’s consultation on reforms to the Energy Performance of Buildings framework. The consultation covering England and Wales ended on 26 February 2025.
Recap - what are the proposals?
The reforms are aimed at helping the government to achieve its commitments to a sustainable future for the built environment, reaching net-zero emissions by 2050, reducing fuel poverty, and improving building standards. The consultation focuses on changes to energy performance certificates (EPCs), display energy certificates (DECs) and air conditioning inspection reports (ACIRs).
EPC metrics
Changes to the EPC metrics for assessing the energy performance of buildings are proposed, with the introduction of any changes anticipated in the second half of 2026. The existing headline metric for domestic buildings is the energy efficiency rating calculated using modelled energy costs based on standardised heating patterns, temperatures and fixed fuel price assumptions. The government proposes domestic EPCs use four headline metrics: energy cost, fabric performance, heating system and smart readiness. Other metrics, such as carbon and energy use, providing secondary information.
The existing headline metric for non-domestic buildings is the environmental impact rating calculated using modelled carbon dioxide emissions per square metre. For non-domestic EPCs, carbon would remain the single headline metric at this time. The government may consider adding new primary or secondary metrics where appropriate in the future.
When EPCs are required
The consultation proposes various changes to when EPCs are required. Reducing the validity period for EPCs is a key change. Currently an EPC is valid for 10 years. Other proposals include requiring an EPC when an existing EPC expires for private rented buildings. Currently when an EPC expires a new EPC is only required when a property is re-let. Requiring an EPC before a building is marketed for sale or rent and requiring heritage buildings to have an EPC. Houses in multiple occupation will require an EPC when a single room is rented out. Currently an EPC is only required when the whole house is rented out.
DECs and ACIRs
The consultation considers the effectiveness of DECs. A DEC and DEC recommendation report are required by public authority buildings with a total floor area of over 250m² that are frequently visited by the public. The consultation proposes reducing the validity period of DECs and DEC recommendation reports from 10 years to 7 years for buildings between 250 – 1,000m², and the validity period of DEC recommendation reports from 7 years to 5 years for buildings over 1,000m². The validity period of one year for DECs for buildings over 1,000m² would remain unchanged.
Redesigned ACIRs are proposed to encourage more engagement with the report findings and recommendations. The rationale being simplification may encourage more action to improve the energy performance of systems leading to cost and carbon savings.
MEES – what’s next?
The consultation does not cover minimum energy efficiency standards (MEES), but separately the government is consulting on proposals for homes in the private rented sector to meet improved MEES. EPC ratings are used as the basis of MEES requirements, and the government is proposing to set the higher MEES against the new EPC metrics.
Currently all privately rented homes are required to have an EPC rating of E or above. The government’s preferred approach is to require landlords to meet a standard which is likely to involve similar improvement measures to the equivalent of EPC rating C on current EPCs, with the higher MEES applying to new tenancies from 2028 and to all tenancies by 2030.
The government’s consultation on improving the energy performance of privately rented homes in England and Wales closes on 2 May 2025. The equivalent consultation on MEES for commercial properties is awaited. The government’s response to the Climate Change Committee’s progress report published in December 2024 indicates plans to publish a response to the 2021 consultation on MEES for the non-domestic private rented sector early in 2025.
Reforms to the Energy Performance of Buildings regime
Improving the energy performance of privately rented homes: 2025 update - consultation document
Our government is committed to a sustainable future for our built environment and recognises the need to reform the Energy Performance of Buildings (EPB) Regime to help achieve this.”
