Energy performance of buildings consultation launched

Summary  

On 4 December 2024 the Government launched a consultation on reforms to the energy performance of buildings regime. The topics covered include improving the applicability, quality and data usage of energy performance certificates in domestic and non-domestic buildings, refining requirements for energy performance certificates and display energy certificates, and updating the metrics of energy performance certificates. This is an opportunity for the property industry to give its views on reform of the legislative position on the energy performance of buildings. The period for responding to the consultation ends on 26 February 2025.  

The consultation^[1]

The consultation applies to England and Wales.

Details of the consultation and how to respond can be found at Reforms to the Energy Performance of Buildings regime - GOV.UK

EPCs - Proposal for multiple metrics

The Government is proposing, especially for domestic buildings, using multiple metrics on energy performance certificates (EPCs) to provide a more complete representation of building energy performance. A single headline metric, like the current Energy Efficiency Rating for domestic buildings, is proving to be insufficient to meet the diverse needs of users and policy objectives.

For domestic EPCs (i.e. broadly meaning EPC for residential property), the proposal is for four headline metrics: ‘fabric performance’, ‘heating system’, ‘smart readiness’ and ‘energy cost’, with other metrics provided as secondary information.

For non-domestic EPCs (i.e. broadly meaning EPC for commercial property), the Government is proposing that the carbon metric (an estimate of the carbon emissions arising from the energy used in the building) is maintained as the single headline metric at this time. Non-domestic EPCs are already carbon focused and the Government aims to maintain some consistency in the short term, particularly in light of any regulations which they underpin, such as the minimum energy efficiency standards (MEES). The Government is interested in gathering views on whether a carbon-based metric should be retained as a headline rating for non-domestic buildings.

It is anticipated that any changes to the EPC metrics will be introduced in the second half of 2026.

When EPCs and DECs are required 

• The consultation asks whether the validity period of EPCs (currently, 10 years) should be reduced. Among the reasons for reduction is to ensure that EPCs more accurately reflect the current state of a property. If, ultimately, the validity period is changed, the Government’s preference is to allow all existing EPCs to remain valid until the end of their existing validity period and apply any new validity period to new EPCs.
• For private rented buildings, the consultation proposes that the expiry of a current EPC is a new trigger point for the requirement for a new EPC. Requiring a new EPC for rented buildings when the existing one expires would ensure that most new lease renewals would be potentially subject to MEES.
• An amendment is proposed that a building should not be marketed for sale or letting without an EPC. The current position is to allow a maximum of 28 days following the marketing for the EPC to be produced. 
• The proposal is that all heritage buildings (i.e. buildings officially protected as part of a designated environment or because of their special architectural or historical merit) are required to have an EPC. However, EPC recommendations would be tailored appropriately to consider the nature of the buildings. Where MEES applies, the Government will work to find measures to ensure owners of heritage buildings are not mandated to install unsuitable measures.
• The Government is considering reducing the validity period of display energy certificates (DECs) and DEC recommendation reports from 10 years to 7 years for buildings between 250-1,000m², and the validity period of DEC recommendation reports from 7 years to 5 years for buildings over 1,000m².
• The Government proposes that the option to opt-out EPCs from the EPC register should be removed, so as to ensure that EPCs are available to all prospective buyers, tenants and enforcement bodies through the public address search function on the register.
• The consultation does not propose any changes to the sub-standard ratings under the MEES regulations. The consultation does not refer back to the previous significant consultation on sub-standard ratings from 2021 Important new Government consultations on energy efficiency. The current Government has previously mentioned the possibility of residential property in England having to achieve a minimum EPC rating of band C by the end of 2030 – this consultation does not deal with proposals in that regard.

Penalties and enforcement

• The Government proposes an increase in the penalties for breaches of the requirements of the EPC regulations, with one possibility being the doubling of penalties, so for a non-domestic EPC, the maximum penalty would increase from £5,000 to £10,000. Also being considered is increasing the six-month timescale for fines to be imposed. 
• The Government will work with local authorities on how to ensure more effective enforcement of the regulations.

Air conditioning inspection reports

Air conditioning inspection reports (ACIRs) are mandatory inspections, carried out by accredited air conditioning energy assessors at regular intervals not exceeding five years, for all air conditioning systems with an effective rated output of more than 12kW, including those which control ventilation, humidity and air cleanliness. The consultation includes proposals to improve compliance with the ACIR regime and improve the format of ACIRs.

Conclusions

This consultation proposes important changes for the property industry affecting EPCs, in particular. If any of the matters mentioned above or otherwise included in the consultation are of concern, responses can be provided to the consultation, details at Reforms to the Energy Performance of Buildings regime - GOV.UK by 26 February 2025.

For further information about MEES, click on MEES Insight Hub | CMS UK and the-impact-of-mees-flowchart

Postscript added 19 December 2024

On 17 December 2024 the Government issued its response to the Climate Change Committee’s (CCC) Annual Progress Report to Parliament. The response highlights the actions that the Government has taken since July 2024 and proposes to take to reduce emissions and in the context of net zero. The response, among other matters, includes the following on actions to be taken by the Government in relation to MEES.

• The Government will shortly consult on proposals for homes in the private rented sector to meet improved MEES by 2030, preventing landlords from renting out homes under an EPC rating of C or equivalent. One of the CCC’s top ten priority actions focussed on obligations on landlords to improve the energy efficiency of rented homes.
• Going further, the Government will consult in due course on introducing MEES to the social rented sector by 2030, requiring all social housing in the UK to meet an EPC rating of at least C or equivalent.
• The Government is planning to publish the response to the Non-Domestic Private Rented Sector MEES consultation early in 2025.

More details of the Government’s response can be found at Committee on Climate Change 2024 progress report: government response

^[1] This article contains public sector information licensed under the Open Government Licence v3.0.