Minimum Energy Efficiency Standards (MEES)

With major reforms likely to be finalised over the next few months, minimum EPC ratings have become a hot talking point for landlords. The current proposals suggest that, from 2030, rental properties will need to have a minimum energy efficiency rating of C. New tenancies would be required to meet this standard from 2028 onwards.

But why is this of interest to landlords now and not in two to four years?

From later this year the way in which the EPC is calculated is being updated which may mean that even without making any changes to your property your EPC rating could shift, with further updates due early 2027. Under the proposed revised scheme, modern heating systems, high insulation values and smart technology will have the biggest impact on the ratings.

What if I can’t meet the deadline or it is costly to do so?

The good news for landlords is that those properties that will cost more than £10,000 to upgrade to a C rating will have the option to apply for an exemption once £10,000 has been spent and evidenced. The exemption would last 10 years upon which further improvements will have to be made to meet the minimum rating or another exemption would need to be obtained.

With many lenders looking to assist landlords with additional borrowing options, it is worth landlords reviewing their portfolios to identify which properties could require works and which properties have equity that could fund them to reduce the cashflow burden.

Further information:

Improving the energy efficiency of socially rented homes in England: Summary of consultation responses - GOV.UK