The Latest News on Energy Performance in Rental Properties

A revised regulatory landscape is emerging for energy efficiency in the UK’s rental housing market, with key differences noted between the England and Scotland rules around compliance.

In England, under the current rules, domestic private rented properties must hold a valid Energy Performance Certificate (EPC) of at least band E (on a scale from A – most efficient to G – least efficient) to be rented out.

These rules form part of the Minimum Energy Efficiency Standards (MEES) regime, which applies when properties are let.

Looking ahead, the Department for Energy Security & Net Zero (DESNZ) has proposed raising the minimum standard to band C for private rented homes and under the consultation published in 2025, new tenancies would need to meet the higher standard from 2028, with all tenancies compliant by 2030.

The government also proposes new metrics beyond the conventional EPC methodology — such as measuring “fabric performance”, smart-ready systems and heating-system efficiency.

Landlords should note that failure to comply may lead to penalties, higher cost caps for improvement work, and the need to register valid exemptions.

In Scotland, the regulatory framework diverges as currently all rental properties must hold a valid EPC and for the private rented sector (PRS) there is currently no minimum rating.

The Scottish Government is consulting on sweeping reforms with new rules which will introduce a re-worked certificate regime based on a Heat Retention Rating (HRR) and heating-system metrics; the draft regulations currently propose that from 1 April 2028 all newly let PRS properties must meet HRR band C, and from 31 December 2033 the requirement will extend across all tenancies.

Key notes for Landlords & Tenants –

• Landlords in England still operate under a band E minimum, but should prepare for band C requirements in the medium term.
• In Scotland, there is no minimum banding on EPC’s, but rigorous standards and a new certificate regime are on the horizon.
• Tenants should expect increasingly stringent efficiency standards, which should lead to lower energy costs in the long run.
• Property-owners should act early: commissioning EPCs, reviewing their property’s current band, budgeting for upgrades, and monitoring the unfolding policy landscape will help in the long term.
• Exemptions exist in both nations, but successful registration depends on adhering to regulatory procedures and deadlines.