The UK government’s consultation on Energy Performance Certificate (EPC) reforms has officially closed. This marks a pivotal moment in overhauling how building energy efficiency is measured and enforced. With new policies likely to take effect in 2026, industry stakeholders—including assessors, governing bodies, architects, building owners, asset managers, and developers—have voiced their views. A general consensus surrounds the challenges and opportunities these changes will bring.

What’s Changing in the EPC System?

The government’s proposals aim to modernise the EPC framework, making it a more accurate reflection of a building’s energy performance. One of the most significant shifts is the transition from a single headline rating (A–G scale) to a multi-metric EPC system. This would include detailed metrics such as:

• Energy cost – A clearer breakdown of operational costs for building users.
• Fabric performance – A stronger focus on insulation, glazing, and airtightness.
• Heating system efficiency – A move to evaluate heating, cooling, and ventilation more rigorously.
• Smart readiness – Integration of digital systems to enhance efficiency.
• Carbon emissions – Aligning EPC ratings with the UK’s net-zero targets.

The industry has broadly welcomed this approach, believing it will improve transparency and drive better energy performance. However, concerns remain that increasing the complexity of EPCs could make them harder for property owners and tenants to interpret.

Another key proposal is to shorten the validity of EPCs from the current 10 years to a shorter timeframe—possibly 3–5 years. This change is widely supported, as it would ensure assessments remain up-to-date, particularly in light of Minimum Energy Efficiency Standards (MEES) regulations that require rental properties to meet specific EPC ratings.

Additionally, compliance enforcement is expected to be strengthened. All rented properties, including HMOs and short-term lets, may soon require a valid EPC at all times, not just at the point of letting. Stricter penalties for non-compliance are also on the table, making it increasingly difficult for landlords to sidestep efficiency upgrades.

Industry Consensus on EPC Reforms

Broad Support for Modernising EPCs

There is broad agreement that EPCs need an update to align with net-zero goals and fuel poverty reduction. Buildings account for roughly 20% of the UK’s emissions, so better energy performance is crucial​. The industry welcomes making EPCs more useful and trustworthy to drive improvements​. A major proposal is to move beyond the single A–G rating. The government plans to introduce multiple metrics – including energy cost, fabric performance, heating system efficiency, smart readiness, carbon emissions, and energy use – for a more comprehensive view of a building’s performance​. Leading industry bodies support this holistic approach. For example, the UK Green Building Council “welcomes” multiple metrics as the current single metric is seen as insufficient. Elmhurst Energy, a prominent EPC accreditation body, agrees that new metrics will “help to demystify” EPCs and reduce confusion, advocating that Energy Cost, Carbon, and Energy Use be made the primary indicators. However, there’s a shared caution: more data must not overwhelm users. Citizens Advice echoed a common concern that while more information is useful, EPCs risk becoming “too complex for consumers to engage with easily” if not designed well. stakeholders urge robust user testing to ensure the new EPC format remains clear​.

Calls for Tighter Compliance and Quality

Another consensus point is the need to strengthen compliance and trust in EPCs. The consultation proposed shortening the 10-year EPC validity period, suggesting anywhere from 3–5 years or even less​. Many in the industry back a shorter renewal cycle to keep EPC ratings “fresh” and reflective of recent improvements. (Elmhurst has even advocated for a 3-year or less validity to ensure EPCs don’t become outdated​. There’s also strong support for closing loopholes in coverage. For instance, under the proposed rules, landlords must always have a valid EPC for a rental property, not just at the point of letting. Houses in multiple occupations (HMOs) and short-term holiday lets would no longer slip through the cracks – they’d require EPC Certificates and thus fall under Minimum Energy Efficiency Standards (MEES) regulations too​. This expansion is widely seen as levelling the playing field and is backed by both consumer advocates and industry groups​. Additionally, improving EPC quality is a priority. The consultation calls for better assessor training, accreditation oversight, and harsher penalties for “fraudulent or sloppy” EPC assessment. Industry voices agree that building owners and buyers need to trust EPC data, so cracking down on poor-quality certificates is essential​.

Alignment with Net-Zero and Building Regulations

The push to reform EPCs is happening alongside updates to building regulations and climate policy. The consensus is that EPC changes should complement building regulations compliance efforts for new construction and major renovations. Architects and engineers note that Part L (energy efficiency in Building Regs) has tightened standards for new builds, and the reformed EPC system will likewise raise the bar for existing buildings. Notably, Scotland has already outlined similar EPC changes in its own consultation response, and the EU has adopted a recast Energy Performance of Buildings Directive in 2024​. The UK’s approach is intended to sync with these broader trends, ensuring consistency across all UK nations and reflecting modern policy priorities​.

Implications for Building Owners and Landlords

The proposed EPC reforms will place greater financial and regulatory pressure on property owners. Landlords will no longer be able to rely on outdated EPCs to meet compliance obligations—ongoing monitoring and periodic reassessments will be required.

MEES regulations will tighten, with discussions underway to mandate an EPC rating of C or above for rental properties by 2030. This could leave thousands of properties stranded unless significant energy upgrades are made. Property owners must now start planning how to improve their insulation, heating systems, and building services to avoid regulatory and financial risks.

Stronger enforcement measures and higher penalties are also expected. The current fines for non-compliance have been described as too lenient, with some landlords choosing to absorb penalties rather than invest in upgrades. The government is now considering increasing these fines substantially, making compliance the only financially viable option.

However, there are financial benefits to energy improvements. Properties with higher EPC ratings consistently attract better rental yields and sale values. Studies suggest that moving from an EPC F to a C can increase property value by over 15%. Additionally, tenants are becoming more conscious of energy costs, making energy-efficient buildings more desirable in the rental market.

For landlords concerned about costs, phased retrofit planning is the best approach. Rather than tackling every issue at once, prioritising high-impact, cost-effective upgrades—such as cavity wall insulation or LED lighting—can improve EPC scores without excessive upfront investment.

Implications for Asset Managers

For portfolio managers, the EPC reforms signal a need for proactive risk assessment. Buildings that do not meet upcoming MEES targets could become stranded assets, where they cannot legally be rented or sold without costly upgrades. Asset managers must now evaluate the energy performance of their entire portfolio and create a long-term improvement strategy to ensure compliance.

Additionally, lenders and investors are increasingly factoring EPC ratings into financing decisions. Buildings with poor energy performance may struggle to secure competitive loans or investments. Many financial institutions are now offering “green loans” and preferential mortgage rates for properties with high EPC ratings, making proactive upgrades a sound financial strategy.

To stay ahead, asset managers should leverage portfolio-wide EPC monitoring tools that track compliance risks, model upgrade scenarios, and prioritise energy investment based on financial returns.

Implications for Developers

For developers, these reforms will reshape expectations around new-build standards. Simply meeting Part L building regulations may no longer be enough—buyers and tenants are prioritising properties with strong energy credentials.

Developers should now aim for EPC A or B ratings as a minimum to future-proof new projects. Integrating renewables, high-efficiency HVAC systems, and smart building technologies from the outset will not only ensure compliance but also provide a competitive edge in the market.

Additionally, planning authorities are increasingly aligning with EPC goals. Demonstrating a commitment to low-carbon, energy-efficient designs could improve planning approval chances, particularly in cities with ambitious climate targets.

For developers working on adaptive reuse and retrofit projects, early-stage EPC modelling is crucial. Rather than treating energy efficiency as a compliance issue, it should be embedded into project feasibility studies to avoid unexpected costs down the line.

Final Thoughts & Next Steps

The closure of the EPC reform consultation marks a major shift in the UK’s approach to building energy performance. With final policies expected in the next year, now is the time for architects, developers, landlords, and asset managers to get ahead of the curve.

The key takeaway? Proactive planning is essential. Waiting until new regulations come into force will only lead to rushed, expensive compliance efforts. Instead, strategic, phased energy improvements will ensure buildings remain compliant while maximising financial returns.

Need Help Navigating EPC Compliance?

Energy Digest’s MEES Uplift services provide cost-effective, tailored strategies to improve your EPC rating. Whether you’re looking for retrofit planning, compliance roadmaps, or expert energy assessments, our team can help you minimise costs while achieving full compliance.

Start your EPC upgrade journey today. Get in touch with Energy Digest’s experts to ensure your building portfolio is future-proofed and financially optimised.