What are the current rules?

A landlord of both domestic and non-domestic privately rented property is not permitted to award new leases or renew existing leases of “sub-standard” premises under the present Minimum Energy Efficiency Standards (MEES) Regulations. If a building receives a F or G for energy efficiency, it will be considered “sub-standard.”

What does the MEPB Bill say?

The Bill mandates that any residential tenancy granted on or after December 31, 2025, have an energy efficiency performance of at least Band C in order to fulfil the Government’s commitment to raise the energy performance of buildings in England and Wales. All leases signed before December 31, 2025, have an additional grace period, but starting in December 2028, they must be at Band C.

What does Band C mean?

The “Standard Assessment Procedure” (SAP), a point system that ranks a property’s energy efficiency on a scale of 1 to 100, with 100 being the greatest possible result, is used to assess the energy performance of a property. A property must obtain between 69 and 80 SAP points to qualify for Band C. Points are earned based on the energy-saving practices implemented at a property. Installing solar panels, double-glazing, loft and wall insulation, updating your boiler, and other improvements can raise your score to a Band C or above.

How many homes are affected?

Only 42% of evaluated dwellings in England and 37% of those in Wales had a C or better rating, according to a study released in January 2022 by the Office of National Statistics.

The main element affecting the results is the age of the house, which varies among counties due to different dwelling styles. It is significant to highlight that the numbers do not accurately represent the whole housing stock in England and Wales because they are based on a study of dwellings for whom an EPC is available.

The data presented are likely a reasonable picture of the rental market, but landlords shouldn’t be renting out houses without an EPC, so there is still a long way to go until all landlords are compliant by 2025.

What steps should I take now?

Checking the expiration date of your present certificate should be your first step because EPCs have a shelf life of ten years. The rating is the next thing to check. Sit back and take pleasure in your investment if your present certificate expires after December 31, 2025 and your property is already at a Band C or higher.

Similarly, if your certificate is a C and it expires before December 25, 2025, and you haven’t done anything to your property that may have decreased its SAP Points, all that’s left to do is renew your certificate as usual when it does.

Regardless of whether the certificate expires on or before December 31, 2025, if your present rating is below a C, you should start thinking about what steps you can take right away to make sure that you will be in compliance when the time comes.

Planning ahead can not only help you control expenses, but it will also help you avoid a last-minute rush when suppliers and contractors might be best able to satisfy demand.