The UK Government has launched a new consultation on improving the energy performance of privately rented homes in England and Wales. The proposals, released in July 2025, set out plans to raise the minimum energy efficiency standard (MEES) to the equivalent of Energy Performance Certificate (EPC) band C by 2030.

If adopted, this policy could deliver major benefits – reducing household energy bills, cutting carbon emissions, and helping the UK meet its legal commitments on fuel poverty and climate targets. For landlords and tenants alike, the changes will mark a significant shift in how rental homes are upgraded and managed.

Why the Change Matters

Privately rented homes are often some of the least energy-efficient in the housing sector. Poor insulation, outdated heating systems, and inadequate ventilation mean tenants can face high bills, draughty rooms, and health risks linked to cold or damp living conditions.

By raising the standard to EPC C, the government aims to ensure that homes are warmer, healthier, and more affordable to run. This is particularly important in the context of rising energy prices, where energy efficiency improvements can mean hundreds of pounds of savings each year for households.

A New Approach to EPCs

One of the key updates in this consultation is the proposal to reform EPCs. The current system, based largely on the Energy Efficiency Rating (EER), has been criticised for being outdated and not always reflecting real-world performance.

Instead, the government suggests introducing new metrics, including:

  • Fabric performance – how well a building holds in heat.
  • Heating system efficiency – the effectiveness of boilers, heat pumps, or other heating technologies.
  • Smart readiness – the ability of a home to make use of modern, flexible energy systems.

The preferred model is to make fabric performance the primary standard, with landlords also required to meet a secondary standard in either heating efficiency or smart readiness. This strikes a balance between clear priorities (insulation and airtightness) and flexibility for landlords to choose the most appropriate improvements.

What This Means for Landlords

The consultation also proposes increasing the spending cap for required improvements to £15,000 per property. This reflects the rising cost of works and the broader scope of upgrades expected. Landlords who can demonstrate that costs exceed this cap would still be able to apply for an exemption.

While this is a significant investment, the benefits are long-term. Properties with higher efficiency ratings are more attractive to tenants, cheaper to run, and future-proofed against tightening regulations. Funding support and quality assurance will remain vital to ensure works are delivered to a high standard.

Looking Ahead

At National Retrofit Ltd, we welcome the government’s ambition to improve rental housing standards. Focusing on fabric-first upgrades ensures lasting benefits, while flexibility around secondary measures allows landlords to make practical decisions based on their property type.

These reforms highlight the growing importance of professional retrofit assessments, design, and coordination. By working with accredited experts, landlords can make informed investments that deliver value for money, improve tenant comfort, and support the UK’s net zero goals.

In summary: Raising standards to EPC C by 2030 is not just a regulatory hurdle – it’s an opportunity to improve homes, protect tenants, and enhance property value. At NRL, we’re ready to support landlords and housing providers in navigating these changes and delivering retrofit projects that stand the test of time.