New 2025 Consultation on Improving Energy Performance of Private Rented Homes

On 7 February 2025, the Department for Energy Security and Net Zero (DESNZ) issued a new consultation on “Improving the energy performance of privately rented homes”. DESNZ are seeking views on government proposals to increase the minimum energy efficiency standards (MEES) for rented homes across England and Wales with the aim of reducing energy bills and alleviating fuel poverty. 

The consultation follows on from the previous government’s 2020 consultation on the same topic, and proposes additional reforms to the Energy Performance Certificate (EPC) grading system. 

Key Proposals 

The government are proposing various amendments to the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 and the Energy Act 2011. Key proposals include: 

• Requiring privately rented homes to meet a minimum energy efficiency standard equivalent to EPC C by 2030, where they are subject to an existing tenancy. For new tenancies, EPC C equivalence will be required by 2028;
• Increasing the maximum amount that landlords can be required to invest in property improvements to meet the stipulated standard (known as the ‘cost cap’) to £15,000. This is an increase on the £10,000 proposed in 2020 and a significant jump from the current cap of £3,500;
• Implementing an affordability exemption which would reduce the cost cap to £10,000 in certain circumstances; 
• Increasing the maximum fine for landlords who do not comply with MEES to £30,000 per property, per breach. Currently the cap is set at £5,000 per property; and
• Introducing new metrics to EPCs to assess energy performance based on fabrication performance, smart readiness and the emissions and efficiency of the heating system, to be brought in following EPC reform in 2026.

Getting involved

The consultation period will be open for 12 weeks, closing on 2 May 2025. DESNZ are particularly seeking responses from private rented sector landlords (including leaseholders), tenants, local authorities, and members of the supply chain such as energy efficiency installers. 

Following close of the consultation, the government will publish a response outlining interim policy decisions, pending finalisation of government policies on EPC reform and the Home Energy Model. 

If you would like any further information, or advice related to any of the information in this article, please contact Catherine Banton, or your usual Burges Salmon contact. 

This article was written with the assistance of Sophie Pace-Bonello.