Energy Performance Certificates (EPCs) are a familiar part of the UK property landscape, rating buildings from A (most efficient) to G (least efficient). They are required when properties are built, sold or let, and form the basis of the Minimum Energy Efficiency Standards (MEES).
For landlords, a property must have a minimum EPC rating of E to be legally let, unless an exemption applies.
However, the current system relies on a single headline metric, typically based on energy cost for residential buildings. This has been criticised for not fully reflecting a property’s overall energy performance.
The proposal
Following its 2024 to 2025 consultation, the Government published a partial response in March 2026, confirming that reform is on the way. Further details are expected later in 2026.
A major change will be the shift to a multi-metric EPC. Instead of one headline score, new domestic EPCs are expected to measure:
- Fabric performance, including insulation and heat retention,
- Heating system efficiency and carbon impact,
- Smart readiness, and
- Energy cost.
This approach is designed to provide a clearer and more practical picture of building performance, helping both property owners and occupiers make better decisions.
There are also proposals to change how EPCs are used in practice. These include shorter validity periods and a requirement for properties to have a valid EPC at all times during a tenancy, rather than only at the start.
With these reforms, the intention is clear – improved performance. On the 18th June the government confirmed that from 2031, it is proposed that all private rented buildings over 1,000 square metres in England and Wales will need to reach a higher standard of energy efficiency of EPC B, where cost effective. Although there had previously been proposed interim EPC C milestone for 2027, this will not be taken forward, giving landlords and tenants a five-year window to consider energy efficiency planning”.
In practice
For landlords, these reforms point to increased responsibility and forward planning. Reaching EPC C or B is likely to require investment in insulation, heating systems or other improvements, particularly for older properties. The move to multiple metrics may also influence which upgrades are most effective.
For tenants, the changes should bring greater transparency and improved living conditions. More detailed EPCs will make it easier to understand both energy efficiency and likely running costs. That said, there may be knock-on effects if landlords pass on upgrade costs through higher rents.
Across the market, the key message is preparation. With further announcements still to come, landlords should begin reviewing their portfolios and considering upgrade strategies now.
The reforms aim to deliver a more accurate and useful EPC system. As the details develop, both landlords and tenants will need to stay informed and ready to adapt.
How we can help
These reforms are about more than regulatory compliance. They form part of a broader shift towards a more sustainable built environment, where energy efficiency is central to both property value and occupier wellbeing. As the UK moves towards its net zero targets, EPC reform will play a key role in shaping a greener, more resilient housing market for the future.
We are already supporting clients in this area, including through our suite of climate-focused lease and contract clauses and our wider experience in advising on sustainability-driven changes. Get in touch with our team here.