2026
brings changes to EPCs
Significant changes to Energy Performance Certificates (EPC) are set to take effect in 2026, including new metrics for assessing energy efficiency and stricter standards for landlords.
Key Changes to EPC Regulations
New Metrics: The EPC system will transition to a multi-metric approach that includes three key metrics: Heat Retention, Heating System, and Energy Cost. This replaces the current single-number rating system, providing a more comprehensive assessment of a property's energy performance.
Shorter Validity Period: Both domestic and non-domestic EPCs will only be valid for five years instead of the previous ten years. This change aims to ensure that energy performance ratings remain current and relevant.
Updated Methodology: The existing Standard Assessment Procedure (SAP) will be replaced by a new Home Energy Model (HEM), which is designed to provide more accurate assessments of energy performance and better reflect modern energy efficiency technologies.
Higher Standards for Landlords: By 2030, landlords will be required to ensure their properties achieve at least an EPC rating of C. This is a significant increase from the current minimum rating of E, and non-compliance could result in substantial fines.
Implementation Timeline: The proposed changes are expected to roll out in 2026, with a phased approach to allow landlords time to adapt to the new requirements. The consultation process is ongoing, and further details will be provided as the implementation date approaches.
FAQ's
Why an EPC is required?
An EPC is intended to provide prospective buyers and tenants of a building with correct information about the energy performance of the building and practical advise on improving such performance.
An EPC provides an energy efficiency rating (related to running costs) for a building based on the performance potential of the building itself (the fabric) and its services (such as heating, insulation ventilation and fuels used). Not all buildings are used in the same way, so the energy rating uses 'standard occupancy' assumptions which may be different from the way the building is used.
Which buildings require EPC's?
Existing buildings need an EPC when they are to be SOLD or RENTED out. Existing occupiers or tenants will not require an EPC unless they sell, assign or sublet their interest in the building.
A building offered for sale or rent, must include the energy performance indicator of the building as shown on the EPC, e.g. C in any advertisements in the commercial media. The is no requirement to display the full EPC.
Situations where an EPC is not required
A EPC is generally not required where the seller or landlord can demonstrate that the building is any of these:
-
buildings protected as part of a designated environment or because of their special architectural or historical merit are exempt from the requirements to have an EPC insofar as compliance with minimum energy performance requirements would unacceptably alter their character or appearance
-
temporary buildings with a planned time of use of two years or less
-
residential buildings which are intended to be used less than four months of the year or where the owner or landlord could reasonably expect the energy consumption of the building to be less than 25% of all year round use
-
stand-alone buildings with a total useful floor area of less than 50m²(i.e. buildings entirely detached from any other building)
A building is also exempt where the seller or landlord can demonstrate that:
-
the building is suitable for demolition
-
the resulting site is suitable for redevelopment
-
all relevant planning permissions, listed building consents and conservation area consents exist in relation to the demolition, and
-
in relation to the redevelopment, either outline planning or planning permission exists and where relevant listed building consents exist
Holiday lets do not need an EPC. An EPC will only be required for a property rented out as a furnished holiday let, as defined by HMRC, where the building is occupied for the purposes of a holiday as a result of a short term letting arrangement of less than 31days to each tenant, and is rented out for a combined total of four months or more in any 12 month period, and if the occupier is responsible for meeting the energy costs for the property. The property must meet the conditions of a furnished holiday let as defined by HMRC.
An EPC is not required for an individual room when rented out, as it is not a building or a building unit designed or altered for separate use. The whole building will require an EPC if sold or rented out.