Energy efficiency for landlords

The Minimum Energy Efficiency Standards (MEES) were introduced in 2015 to ensure that private rented properties meet a minimum EPC rating of E for new tenancies and renewals. The Government is now consulting on raising this minimum requirement to a C rating. 

The Government has proposed reforming the way EPC's are calculated based on a number of new metrics. These metrics will focus on three key areas: fabric efficiency, heating systems, and smart readiness. All properties will need to meet the fabric efficiency requirement, but landlords will have some flexibility in how they meet the remaining standards. Under these proposals, properties with new tenancies must meet the C rating by 2028, while existing tenancies must comply by 2030. 

About the Campaign 

The NRLA is campaigning for a fair and practical approach to implementing the new MEES. We understand the importance of improving energy efficiency in the private rented sector (PRS) but believe that the timeline, funding options, and clarity on the standards must be carefully considered to avoid overburdening landlords. We are calling for: 

• A realistic transition time - The timeline for landlords to meet the new energy efficiency requirements needs to be more feasible. With the Government planning to introduce secondary legislation by late 2026, landlords will have potentially less than 18 months to assess, secure funding, complete upgrades, and obtain a new EPC. This timeframe is too short, especially given the costs, including the £15,000 cap on upgrades. More time is needed, especially for landlords with long-term tenancies, to ensure a smooth transition without disrupting businesses or tenants. 

• Clarify the standards and requirements - Landlords need clear guidance on the energy efficiency standards they must meet. Waiting until 2026 for clarity is not feasible, and landlords need certainty now to avoid confusion and non-compliance. The process should be streamlined to ensure landlords understand exactly what is expected, providing enough time for landlords to get to C. 

• Ensure access to funding - Landlords need clear and accessible funding options to help cover the cost of property upgrades. The financial burden will be especially heavy in areas with lower property values, affecting both landlords and tenants. To avoid further strain, it’s crucial that funding options are available to landlords. We have been campaining for a number of financial assistance to be made available including grant funding and tax breaks. 

• Cost Cap - The Government has proposed a new cost cap exemption of £15,000 for landlords. They have also suggested an affordability-based cap of £10,000. However, even this reduced figure remains too high, especially for landlords who own multiple properties. We are advocating for a lower, more realistic cap that reflects the financial pressures landlords face.

• Exemptions - We continue to campaign for the retention and strengthening of existing exemptions. It's essential that landlords have access to fair and reasonable opt-outs. These exemptions would provide protection in situations where meeting the new standards would be unreasonably expensive, structurally impractical, or where necessary consent from freeholders or tenants cannot be obtained. 

The NRLA is engaging with the Government to ensure a sustained programme of support is provided to landlords, to facilitate energy efficiency improvements to dwellings. 

• We are working with the UK Department for Energy Security and Net Zero (DESNZ) and the Welsh Government on energy efficiency and carbon reduction policy, legislation and initiatives. 

• We have been actively responding to the Government’s consultations to help ensure that their policies are not overly burdensome for landlords. Additionally, we have worked to maintain MEES exemptions and to ensure they remain robust, providing landlords with a fair and reasonable set of exemptions.

• In 2021, we commissioned research to define the scale of the challenge of decarbonising homes in areas with low property values, its potential impact on the private rented sector, and recommendations for policy changes to address this challenge

• To help landlords cover the costs associated with making energy efficiency improvements across the country, we proposed an innovative funding and financial package

• We have worked in partnership with the Tenancy Deposit Scheme to conducted research among their registered landlords to better understand landlords recent and future energy efficiency investment in their property portfolios

• To drive forward energy efficiency in the PRS, we submitted a paper to the Government on the learnings from the scrapping of the Green Homes Grant Scheme and made recommendations for future schemes. 

• We have been actively campaigning for more accessible grant funding support that is both easy to apply for and straightforward to qualify for. This has seen some success, with the Government announcing the Warm Homes: Local Grant. In addition, the Government has proposed simplifying the certification schemes for tradespeople, which will help make these grants more widely accessible.