Government Launches Sweeping Review of Building Energy Performance Framework

On 4 December 2024, the government launched an ambitious consultation on reforming how we measure and track the energy performance of buildings, marking a significant step in the journey towards net zero emissions by 2050. The wide-ranging proposals could fundamentally change how Energy Performance Certificates (EPCs) work – yet notably, this review stops short of addressing the contentious Minimum Energy Efficiency Standards (MEES). This would impact both commercial and residential properties across the UK.

At the heart of the consultation are proposals to make EPCs more accurate and up-to-date. The government is considering reducing their validity period from the current 10 years, with options ranging from just two years to seven years. This could ensure that certificates better reflect building improvements and provide more current information to prospective buyers and tenants.

The consultation also proposes requiring valid EPCs throughout a tenancy period, rather than just when a property is being marketed. This would be a significant change for landlords, who currently only need to obtain new EPCs when re-letting to different tenants. For houses in multiple occupation (HMOs), the rules could be tightened to require EPCs when individual rooms are let out.

Another key proposal would remove the current 28-day grace period for obtaining an EPC after beginning to market a property. Instead, landlords and sellers would need to have a valid certificate in place before advertising their property – a change that could significantly impact how quickly properties can be brought to market.

Heritage buildings could also see major changes. The consultation proposes removing their current exemption from EPC requirements, though with careful consideration for ensuring that energy improvement recommendations are appropriate for historic properties. This acknowledges that while heritage buildings often have poor energy performance, improvements can sometimes be made without compromising their character.

The metrics used to calculate EPCs are also under review. While the consultation favours retaining carbon emissions as the primary measure for commercial properties in the short term, it raises the possibility of introducing multiple metrics over time. These could include factors such as fabric performance, heating system efficiency, and even smart technology capabilities.

Perhaps most significantly for many property owners, the consultation signals a potential shift towards requiring EPCs to remain valid throughout a lease term. This would mean landlords having to obtain new certificates when existing ones expire, even if the same tenant remains in place – a marked change from the current system.

What’s notably absent from this consultation is any discussion of changes to the MEES rules themselves. These set minimum energy grades for lettings, currently at band E, and while future increases to this minimum standard have been widely anticipated, the previous government put such changes on hold. The new administration has yet to announce its plans in this area.

Industry experts note that while the consultation focuses on technical aspects of how EPCs work, any significant changes could have knock-on effects on how MEES rules impact the property market. More frequent or comprehensive EPC requirements could bring more properties within the scope of minimum standards and make compliance more onerous.

The consultation runs until 26 February 2025, and property owners, professionals and other stakeholders are encouraged to respond. With buildings accounting for around 20% of UK greenhouse gas emissions, these proposals represent an important step in the government’s strategy to achieve net zero emissions by 2050.

For those wishing to respond, you can do so either by completing an online survey or by writing directly to the contact details given on the Law Commission’s website. Given the potential impact of these changes on the property sector, industry participants are strongly encouraged to make their voices heard during this crucial period of policy development.