THE DEPARTMENT FOR ENERGY & CLIMATE CHANGE.

THE 2018 MEES EPC REGULATIONS.

‘E’ Minimum Energy Efficiency Standards

From 1st April 2019, the requirements on private-rented properties reaching a minimum EPC rating of an E are changing. The ‘no cost to landlord’ rule has now been removed, and private landlords will now need to contribute £3,500 to energy efficiency improvements before an exemption can be considered. These improvements must be stated from a valid EPC.

These changes will mean that it will be unlawful to let or lease a residential or commercial property with a poor EPC rating.

Here are 7 things you need to know about the changes

1. What counts as a poor EPC rating and what remains acceptable: A property must have an EPC rating of E or higher to be let without additional steps. If the rating is F or G, it would be considered poor and not compliant unless the landlord makes the required improvements or falls under an approved exemption.

2. The landlord contribution requirement: Landlords are now required to contribute up to 3,500 toward energy efficiency improvements that are recommended by the valid EPC. This amount is aimed at helping cover the cost of bringing the property up to the minimum standard.

3. How exemptions work: An exemption can be considered once the qualifying improvements have been identified and costs incurred, up to the 3,500 cap. The exemption would apply if the improvements cannot be completed within normal circumstances or if the improvements would not be cost-effective, subject to the rules set by the relevant authority.

4. What improvements qualify: Eligible improvements typically include energy efficiency upgrades such as insulation (draught-proofing, cavity wall insulation, loft insulation), upgraded heating systems, more efficient boilers, double or secondary glazing, and other measures that directly improve the energy performance as indicated by the EPC. The improvements must be those listed on the EPC and deemed reasonably necessary to reach an E rating or better.

5. When this applies and enforcement: Starting from 1 April 2019, it became unlawful to let or lease a property that cannot meet the minimum EPC rating or demonstrate a funded plan to reach it within the allowed framework. Enforcement can involve penalties for non-compliance, and letting authorities may require confirmation that the property meets the standard or that a valid exemption is in place.

6. Scope of application: The changes apply to both residential and commercial private rental properties. If a commercial property or a residential home is let, the same minimum energy performance standards and exemption framework apply.

7. Practical steps for landlords: Begin by obtaining a current EPC for each property. Review the recommended improvements and estimate costs. Secure quotes and plan the work, ensuring that the total potential expenditure does not exceed the 3,500 cap for exemptions. Keep all receipts and documentation, including proof of works completed and any approved exemptions, ready for inspection or enforcement checks. If you’re unsure whether a particular improvement is eligible or how exemptions are applied, consult the local authority or a qualified energy adviser to ensure you stay compliant while protecting your rental income.

1 April 2016

All domestic tenants have the right to request energy efficiency improvements to their properties. This protection covers properties let under longer term assured and regulated tenancies. Under the rules that follow the Minimum Energy Efficiency Standards, landlords should not refuse a tenant’s reasonable request to carry out energy efficiency improvements that are appropriate for the property and feasible in practice. Refusals should not be arbitrary or unfounded and landlords are expected to engage constructively with the tenant to explore suitable options.

If you decide to make a request, you’ll usually need to provide some details to help your landlord assess the proposal. This can include a description of the work you have in mind, the expected energy savings, a rough cost estimate, a proposed timeline, and any information about who would carry out the work and whether you would need planning or consent from the local authority or the building’s management body. It’s helpful to show how the improvements would benefit the property, for example by reducing heating costs, improving comfort, or meeting safety or regulatory requirements.

Landlords should respond within a reasonable timeframe, and any consent should be given or a clear, reasoned explanation provided if it cannot be granted. If consent is withheld, it should be for legitimate reasons, such as potential impacts on the property’s structure, safety concerns, or conflicts with other legally binding arrangements. If a request is refused, you can discuss alternatives or ask for a formal explanation and, if appropriate, seek guidance or mediation.

The improvements themselves must comply with applicable building regulations, safety standards, and planning requirements where relevant. Depending on the scope of work, the tenant or landlord may need to obtain permissions, such as planning consent or listed building consent, and follow any required compliance steps. In some cases, the cost of improvements can be covered by the tenant, the landlord, or a combination of both, depending on what is agreed and what is permissible under the tenancy agreement and current regulations. There may also be grants, loans, or energy efficiency schemes available that could help fund eligible measures.

If works are undertaken, it’s wise to have a written agreement or addendum that outlines what will be done, who will carry out the work, the expected benefits and timescales, who pays for what, how access will be arranged, and how performance will be measured. In the event of tenancy changes or if the property is sold, it’s good to confirm how the improvements are treated under the new tenancy or ownership.

Overall, the aim is to improve the property’s energy efficiency while maintaining safety, comfort, and the terms of the tenancy. Your landlord should treat your request seriously, discuss feasible options, and work with you to find a practical solution that aligns with MEES requirements and best practices for a well-maintained home.

1 April 2018

It will be unlawful to grant new leases of residential or commercial property with an EPC rating below an ‘E’. This means that from the specified compliance date, landlords must ensure that any property they lease out meets at least an E rating, or they may face penalties and penalties could include fines or restrictions on leasing activities. The goal is to drive higher energy efficiency across the market and reduce energy waste, which should ultimately lead to lower utility costs for tenants and a smaller environmental footprint for property owners.

Landlords should plan ahead by obtaining up-to-date EPCs for their portfolios and identifying properties that fall short of the required standard. If a property does not currently meet the threshold, improvements such as insulation upgrades, draught-proofing, efficient heating systems, and efficient lighting can help boost the rating. In some cases, landlords may need to consider more substantial renovations, like installing modern boilers, heat pumps, or other energy-saving measures. It’s important to factor in the costs, payback periods, and potential rental market effects when deciding on upgrades.

There are exceptions to the rule, including certain exempt properties such as listed buildings or those with specific heritage constraints, and short-term or temporary leases in some circumstances. Landlords should consult the regulatory guidance or seek professional advice to understand any applicable exemptions and how they apply to their properties. For tenants, this policy aims to improve comfort, reduce energy bills, and contribute to a more sustainable housing market overall. If you’re a landlord or property manager, consider starting an energy efficiency assessment soon and plan a phased upgrade path to ensure compliance well before deadlines.

1 April 2020

The regulation will expand to apply to all residential privately rented properties that are required to have an Energy Performance Certificate (EPC), extending protections and standards across the entire private rental sector. This means that landlords will need to ensure their properties meet the minimum EPC rating thresholds, provide tenants with up-to-date EPC documentation, and disclose energy efficiency information at the start of tenancies and during renewals. The change aims to improve energy efficiency, reduce energy costs for tenants, and contribute to broader climate and housing goals.

Landlords should plan for a range of actions, including assessing current EPC ratings, identifying cost-effective improvements such as insulation, air sealing, boiler upgrades, or more efficient glazing, and budgeting for any necessary upgrades. Tenants may see changes in energy bills once improvements are in place and could benefit from more comfortable living conditions. Authorities will likely enforce the new rules with penalties for non-compliance, so landlords should stay informed about deadlines, exemption rules, and any available support or grant programs that help cover upgrade costs.

It will be important to verify who is responsible for compliance in each tenancy, how to access and share EPC reports with prospective and current tenants, and what documentation to retain for audits. Property managers and letting agents should incorporate EPC checks into their due diligence and tenancy onboarding processes to avoid delays. If there are exemptions due to listed status, structural constraints, or other legitimate reasons, those should be documented and communicated clearly. In the longer term, owners may see increased property values and greater market appeal for higher-rated homes, while tenants can expect more comfortable, energy-efficient living environments and potential savings on heating costs. Regular updates and guidance from local authorities will help landlords navigate the transition smoothly.

1 April 2023

This will be extended to include all existing commercial leases, ensuring that the same policies, protections, and reporting standards apply across the entire portfolio. By bringing every current lease under the same framework, we can improve consistency, streamline administration, and reduce compliance gaps. The extension will involve reviewing each lease to identify any unique terms that may require adjustment, updating recordkeeping to reflect the expanded scope, and coordinating with property managers and legal teams to confirm timelines and responsibilities.

We anticipate a phased rollout over the next few weeks, beginning with a detailed inventory of all active commercial leases, followed by a review of key clauses such as renewal options, rent escalations, maintenance obligations, and dispute resolution procedures. Communications will be sent to tenants outlining any changes that affect them and the effective dates, along with updated contact points for questions or assistance.

If needed, we will schedule training sessions for internal teams to ensure everyone understands the new process and can handle inquiries efficiently. Our goal is to minimize disruption for tenants while achieving a seamless transition that enhances oversight and consistency across the entire lease portfolio.