Last year, the government consulted on proposals for MEES and EPC reforms for the private rented sector (PRS), seeking views on, among others, the proposed new EPC metrics to be used, cost caps, exemption periods and implementation timeframe. Towards the end of January, the government finally published their response to the consultation, giving clarity to the PRS on the direction and requirements moving forward. So here are ten key points we now know these reforms will be bringing in:

1. Domestic EPCs will change (currently intended to be brought in from October 2026) to consist of four headline metrics: energy cost, fabric performance, smart readiness and heating system. The banding for the new EPC metrics will be determined through the development of the Home Energy Model (HEM), which will replace the Standard Assessment Procedure (SAP) as the underlying methodology, though the details of how it will be calculated and translated into EPC scoring bands is yet to be finalised: a consultation on this is currently open until 18 March 2026.

2. A dual-standard approach to MEES compliance will be used, with PRS properties needing to meet a primary standard set against the fabric performance metric and a secondary standard set against either the smart readiness metric or the heating system metric (the decision being at the landlord’s discretion). So a landlord must first invest in ensuring the building’s fabric performance meets the primary standard and then, once it does (or a valid exemption is registered), move to investing in measures to meet their chosen secondary standard.

3. There will be a single compliance date for all tenancies within the scope of the regulations. All will be expected to comply with the regulations by 1 October 2030, with no differentiation in this requirement between new and existing tenancies.

4. There will be a grandfather clause so properties with an EPC C rating on a current or new EPC issued before 1 October 2029 will be considered compliant until that EPC expires (after 10 years) or is replaced.

5. The cost cap will be set at £10,000, with any third-party funding the landlord receives counting towards this, except where the funding is from the Boiler Upgrade Scheme (BUS). In addition, there will be a ‘property value adjustment’  for properties valued below £100,000, whereby the cap will be lowered to 10% of the property value instead. Also, to encourage earlier preparation and investment by landlords, spending on relevant energy efficiency improvements from 1 October 2025 will count towards the £10,000 cost cap. 

6. The cost cap will be reviewed every 5 years to account for inflation and other factors that may affect it. The first review, it is confirmed, will not take place until after the compliance date of 1 October 2030.

7. The penalty will increase to £30,000 as the maximum that local authorities can issue per breach of the regulations. As well as financial penalties for properties that do not meet the standard without a valid exemption, landlords may also be fined for registering false or misleading information on the PRS MEES Exemptions Register.

8. Exemptions are to be updated and new ones added, which is hoped to give landlords greater clarity on when they may apply and allow easier review and compliance checks for local authorities. The cost cap exemption is to be separated out from the existing ‘all relevant improvements made’; there will be new exemptions for property value adjustment, solid wall insulation and negative impacts (which combines two previous exemptions); and the existing ‘new landlord’ exemption is simplified. The revised cost cap exemption, the property value adjustment exemption and the negative impacts exemption will be valid for 10 years; all other exemptions will typically be valid for 5 years, except the new landlord exemption, which will be valid for 6 months.

9. Short-term lets will not be included under the regulations with this update, but legislative power will be sought to be part of the primary and secondary legislation being laid to implement these reforms, which will allow the secretary of state to bring them into scope in the future if considered necessary. 

10. Updated and detailed guidance will be published by the government in 2029 for landlords, local authorities and tenants, covering compliance, enforcement and the changes to exemptions in advance of the higher standard being implemented.   

This government response has confirmed the reforms that will be going forward for EPC and MEES regulations. With this sitting alongside the other substantial changes in the sector with the Renters’ Rights Act, the update and expansion of the Decent Home Standard and the intended extension of Awaab’s Law to the PRS, the regulatory landscape for the sector, it is safe to say, is continuing to evolve apace. As this happens, RIAMS Libraries will be updated to provide local authorities with the support and simplicity they need to continue taking robust and efficient enforcement action across the plethora of new and updated legislation. 

For even more MEES conversation, don’t miss Hannah Nimmo from SOS UK (sustainable housing advocate), one of our speakers at the RHE Housing 2026 Conference. She will be sharing her insights on MEES and discussing their importance and the consequences of low enforcement.