NRLA webinar: Your FAQs on the new EPC system
The Energy Performance Certificate (EPC) system is changing. We hosted a webinar last week on the new system and why these changes matter to you, explaining how the upcoming Home Energy Model (HEM) methodology will affect EPC calculations. Here are answers to some of the most frequently asked questions.
How will the Home Energy Model affect my EPC C, and when’s the latest I can renew under the current rules?
Currently, EPCs use the EER (Energy Efficiency Rating), which is based on the estimated energy costs of running your property. From 1st October 2029, the Government is replacing the current EPC methodology with the Home Energy Model (HEM).
HEM will assess three different metrics – fabric, heating systems and smart readiness. To reach an ‘EPC C’ under the updated Minimum Energy Efficiency Standard (MEES), in force from October 2030, you must reach C on the fabric metric plus a C rating for either of the other two metrics.
HEM will run alongside the EER system from its launch – expected in late 2027 – until the end of September 2029. During this period, you can choose which model to use to measure your property’s EPC.
If you renew your EPC before October 2029 and it shows an EER of A, B, or C under the current system, it will remain valid for the usual 10-year period. You will not need to obtain a new EPC until the current one expires. This means that some landlords may still be relying on an EPC rating of C under EER until 2039.
What if I can’t reach EPC C currently, or it isn’t practical or affordable? What are the consequences?
Your focus should first be on improving the fabric performance of the property, such as insulation and double glazing, before considering other measures like smart technology or heating systems.
Under the new MEES, you may need to spend up to £10,000 per property on upgrades (or 10% of its value for a property worth less than £100,000). Spending on relevant works from October 2025 counts towards the cap.
If you cannot achieve an EPC rating of C under the current EER system, you will need to have your property reassessed under the HEM system and make any relevant changes within the cost cap before October 2030. If you still cannot reach an EPC C under the HEM system, you can apply for an exemption.
If the property does not attain a rating of C or hold a valid exemption by October 2030, the property cannot be let out in the private rented sector in England and Wales. Under new legislation landlords could face fines of up to £30,000 for breaching new energy rules.
How do I apply for an exemption from the MEES?
You must register it on the official PRS Exemptions Register. This register is a public database where all exemptions are recorded and can be inspected. However, currently this register is just for the current MEES standard of EPC E and not for the new C standard yet.
The Government plans to introduce new and updated exemptions alongside the new MEES regulations. These include a solid wall insulation exemption if you are concerned about damp and mould as a result of installation, the cost cap and property value exemptions highlighted above, and the third-party consent exemption – for example, if you cannot get freeholder or tenant consent for necessary works. You can find out more on our MEES hub.
What counts towards the new EPC?
For domestic properties (homes), air conditioning is not included in the new HEM methodology.
Plug-in solar panels, often referred to as portable or plug-in photovoltaic (PV) systems, are not typically considered in the standard EPC assessment for improving a property’s energy efficiency rating. The EPC methodology focuses on fixed installations and the fabric performance of the building, such as insulation, heating systems, and built-in renewable technologies.
Do I only need to renew my EPC with new tenants?
Once an EPC is issued, it remains valid for 10 years. At the moment, you must provide a copy of the EPC to new tenants at the start of every new tenancy.
Under the new MEES regulations, the Government will change this so that you must always have a valid EPC whilst the property is being let.
Should I invest now or wait, and which properties should I prioritise?
If your property is close to an EPC C under the current system, it would be sensible to look at lower-cost improvements you can make to bring the property up to an EER rating of C. If you do this by September 2029, remember the EPC is valid for 10 years, which gives you a wider window to comply with the HEM requirements.
If it would cost significant sums to reach EPC C under the current model, we’d advise waiting for confirmation of the calculations for the HEM-style EPC to ensure you spend on the measures which will help you reach the new metrics. We expect confirmation in the coming months.
More information
For more detail on the new EPC system, including information on available grants, click here.
