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EPC changes set for 2026
Changes to Energy Performance Certificates (EPCs) will be introduced in the second half of 2026, the government has said.
EPCs rate homes from A to G based on their energy efficiency and inform regulatory targets and retrofit investment decisions by landlords.
The regime was introduced in phases from 2007, but officials in the Ministry of Housing, Communities and Local Government (MHCLG) and the Department for Energy Security and Net Zero (DESNZ) said the system is now “widely used beyond its original scope”.
In a consultation published on 4 December, the departments proposed that EPCs should be based on four metrics rather than one, to provide a “more complete representation” of building performance.
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Currently, domestic EPCs hinge on the energy efficiency rating (EER), which is calculated using energy costs per square metre based on standardised heating patterns, temperatures and fixed fuel price assumptions.
However, officials said, these assumptions about fuel costs “can rapidly become outdated” as fuel prices fluctuate. For instance, installing a low-carbon heat pump could reduce a home’s EER, due to the higher relative cost of electricity compared to gas.
Under the new plans, domestic EPCs will use four headline metrics: fabric performance, heating systems, smart technology readiness and energy cost.
Homes will therefore be assessed for their insulation, low-carbon heat sources, and potential to minimise their impact on the grid through green technology.
To develop the presentation of these new EPC metrics, MHCLG will undertake a research programme into customers’ needs and preferences to make the information “clear and impactful”.
The consultation added that the EPC will remain “an important tool” for delivering the Warm Homes Plan, which includes new standards for private rented homes by 2030.
EPCs are currently an eligibility requirement for grant from the Warm Homes: Social Housing Fund.
In a joint foreword to the consultation, Baroness Taylor of Stevenage and energy minister Miatta Fahnbulleh said “these proposed reforms will bring lasting benefits for generations to come”.
The consultation runs for 12 weeks and closes on 26 February.
Rob Wall, assistant director at the British Property Federation, a developer trade body, said: “For all their flaws, EPCs have an important role in the market as a signal of a building’s environmental credentials, for investors and lenders, landlords and tenants. We agree there is a need to improve EPCs, but any changes need to be carefully considered and carefully introduced in order not to disrupt the market.”
He added: “We need to think carefully before changing the validity period of EPCs. Reducing the validity period from 10 years, combined with a requirement that valid EPCs should be required throughout a tenancy period, will raise practical, logistical and cost challenges. It could also be disruptive to tenants.”
The Scottish government has already set out its own proposals for reform of EPCs and will respond shortly to its 2023 consultation with its final decisions.
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