Consultation: Reforms to the Energy Performance of Buildings regime

The government has launched a consultation on the Energy Performance of Buildings (EPB) framework.

On 4^th^ December 2024 the government launched a consultation on the Energy Performance of Buildings (EPB) framework. The consultation covers England and Wales and sets out the government's vision for a reformed EPB regime.

The government states its intention is the EPB framework:

• provides homeowners and tenants with accurate information about the energy performance of their homes to allow them to make informed investment and purchase decisions

• provides accurate information to determine eligibility for schemes and measure progress against government targets

• provides an information tool to support a range of actions including reducing carbon emissions, tackling fuel poverty, improving decency and the Warm Homes Plan

• reflects the needs of wider users of EPCs beyond homeowners and tenants, such as suppliers of energy efficiency products and services, as well as lenders.

The consultation also recognises that the EPC 'has become a key measurement tool for assessing the performance of our buildings and is now widely used beyond its original scope'.

The consultation notes that there will also be a 'comprehensive programme of research to better understand user needs and preferences in order to present EPCs in a way that aligns with climate objectives and consumer expectations' which will be led by the Ministry of Housing, Communities and Local Government.

The consultation is broken down into five sections covering proposed reforms to enhance the regime.  It looks at both EPCs (metrics, requirements, quality and data) and air conditioning inspection reports (ACIRs).  In relation to EPCs the consultation covers:

What EPCs measure...

The government's view is it wants EPC metrics to be 'helpful for everyone' as well as supporting the government's wider goals which it sets out as 'achieving net zero emissions, encouraging the use of low carbon heating systems, and reducing fuel poverty'. To make EPCs 'more useful' the consultation sets out a proposal to use multiple metrics on EPCs to provide a more complete representation of building energy performance. The government notes that it wants to understand 'the potential of a range of metrics that could be used in EPCs'.  The consultation sets out the following metrics:

• Energy cost: helping individuals understand the financial implications of a building's energy efficiency and make informed decisions about potential improvements

• Carbon: an estimate of the carbon emissions arising from the energy used in the building

• Energy use: offering insights into overall energy consumption and identifying areas for energy efficiency improvements

• Fabric performance: assessing the thermal performance of a building's envelope and promoting the importance of well-insulated, comfortable, and energy-efficient spaces

• Heating system: providing information on the efficiency and environmental impact of a building's heating source and encouraging the adoption of cleaner heating technologies

• Smart readiness: assessing a building's potential to integrate smart technologies that can optimise energy consumption and the ability of consumers to benefit from cheaper smart tariffs.

There is a technical annex to the consultation with further information on the above.

The consultation acknowledges the concerns and challenges that have been raised in relation to the current metrics.  It also notes that any changes to EPC metrics will need to be reflected in the relevant approved assessment methodologies for EPCs. Planned changes for the domestic EPC methodology are already underway with the proposed move to the Home Energy Model.  The government notes this is expected in the second half of 2026 (following consultation in 2025).

The government is proposing different headline metrics for domestic and commercial buildings.    

Domestic EPCs: Here the government is proposing to use the 'fabric performance', 'heating system', 'smart readiness' and 'energy cost' metrics as headline metrics, with other metrics provided as secondary information. The government believes this approach should 'convey the key, complementary aspects of building energy performance, allowing the user to distinguish where the home performs more or less well.'

Commercial EPCs: For commercial EPCs the government is proposing that the carbon metric is maintained as the single headline metric on non-domestic EPCs at this time. The consultation states that '[n]on-domestic EPCs are already carbon focused and are in line with our net zero objectives' and therefore it wishes to maintain some consistency in the 'short term'.  However it welcomes views on whether 'the proposed new metrics may also be suitable for non-domestic buildings at a future stage' and is 'interested in views' on 'whether a carbon-based metric should be retained as a headline rating for non-domestic buildings'.

The presentation of metrics will be considered as part of the consultation and in conjunction with the research the government is undertaking.  It is also noted that the EPC metrics may also change over time (metrics such as a building's resilience to climate change impacts, occupant health, wellbeing, biodiversity, and water efficiency  are highlighted as potentially being relevant for the future).  However, the government states these are not being considered as part of this consultation.

The consultation flags that transitional arrangements will need to be considered as will the impact of any changes on regulatory targets such as the Minimum Energy Efficiency Standards (MEES).

When EPCs and display energy certificates (DECs) are required

Key proposals set out on the consultation include:

• Reducing the validity period for EPCs: Views are sought on what the validity period should be.  The government notes its 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'.

• Requiring a valid EPC throughout a tenancy: A new trigger point for private rented properties is proposed so a new EPC is required for when the current one expires.

• The government proposes an amendment to the regulations to state that a building should not be marketed for sale or let without an EPC. The government proposes removing the grace period which requires an EPC to be commissioned prior to a building being marketed for sale or rent but allows a maximum of 28 days following the marketing for the certificate to be produced. 

• There is also a proposal that all heritage buildings will be required to have an EPC.  If implemented this should remove the uncertainty in relation to listed buildings.  As part of this proposal the government acknowledges that 'some of the generic EPC recommendations are not appropriate for heritage buildings' and notes that they are looking to work with an 'industry group' to improve the recommendations for this type of building.

• The government is also seeking views on DECs and proposing a reduction in the validity periods for DECs and DEC recommendation reports as well as also looking at requirements in relation to short term lets and HMOs. 

EPC data

To improve data quality the government is proposing removing certificates marked as 'cancelled' or 'not for issue' from the EPB Register after two years. Currently all data is kept for 20 years.    There is also a proposal to remove the option to opt out a EPC from the EPB Register (however, there may still be an option to opt out of certain bulk data releases) and to change the approach to sharing EPB Register data.

EPC quality

The government is also keen to improve the quality of EPCs by improving assessor training. 

There are also proposals to improve compliance and enforcement of the EPB regime and views are also sought on potential increases to the maximum penalties in relation to the regime.

Comment

The consultation has been anticipated for some time with the Conservative government having indicated it would launch a consultation in early 2023, following publication of an 'action plan' for EPCs in September 2020.   

More recently the Labour government indicated that it would issue a consultation and take up the mantle of proposals for EPC reform.  The opportunity to revisit EPCs is likely to be welcomed as there have been various calls for reform and concerns voiced about the effectiveness of the regime.

It is also worth noting that following the UK's departure from the EU it became necessary for the Government to introduce new powers to enable it to make amendments to the EPB regime.   These powers are contained in the Energy Act 2023 and on 26 December 2023, the provisions in the Energy Act 2023 giving the secretary of state the necessary powers to make changes to the legislation and the EPB regime came into force.

On 17 December 2024 the government published its response to the Climate Change Committee's (CCC) 2024 progress report. In addition to noting progress in publishing the above report the government again confirms it will shortly consult on proposals for homes in the private rented sector to meet improved minimum energy efficiency standards (MEES) by 2030 and that it 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 consultation closes on 26 February 2025.