The government has announced it is to reform Energy Performance Certificates (EPCs). And it has at last confirmed the new EPC deadline for the private rental sector.

How EPCs will change

In what the government calls “a partial response” to a 2024 consultation exercise on reforms, the government says it will, in the long term, base EPCs on four elements.

These are: energy cost, fabric performance, heating system and smart readiness. 

The government says: “The separate metrics will provide clearer and more useful information to consumers, whilst enabling government to be more targeted in addressing issues such as fuel poverty and net zero, in a way that is not possible [currently].”

A lengthy document released today by the Ministry of Housing, Communities and Local Government (MHCLG) says work is still ongoing on requiring a new EPC when an existing one expires for all private rented buildings.

And specifically it says: “We will ensure the revised Energy Performance of Buildings and Private Rental Sector Minimum Energy Efficiency Standards regulations interact effectively to place the right requirements on landlords without incurring undue burdens. 

“MHCLG and the Department for Energy and Net Zero will engage landlord groups to help shape our plans which we will finalise in the final government response to this consultation.”

In addition to EPCs, the government will introduce for all residential buildings what it calls ”a secondary energy demand metric” based on delivered energy, to provide information on modelled energy usage.” 

It will also retain a secondary carbon-based metric on domestic EPCs, to provide a snapshot of the emissions produced by the building.

The government adds that when new EPC formats are introduced, old certificates will still be valid until the end of their 10 year life.

Homeowners will be able to commission an EPC voluntarily to seek information about how they might improve the energy performance.

Private rental sector deadlines

In a complementary move, the government announced its Warm Homes Plan overnight.

All private rented sector properties will have one deadline of October 2030 to meet the government’s plans. 

This will mean earlier proposals for an interim date of 2028 for the new standards to apply to new tenancies will be dropped. 

The planned cap on the amount landlords will be expected to invest to meet the new standards will be lowered from £15,000 to £10,000.

And the cost cap will be lower where £10,000 would represent 10% or more of a property’s value.

Any spending on energy efficiency works since October last year will be included within the planned cap. 

Landlords will continue to have access to the Boiler Upgrade Scheme grants.

You can see the full and lengthy EPC proposals here.

The Warm Homes Plan released by the government overnight can be seen here.