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Improving the energy performance of privately rented homes in England and Wales

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The government is considering an increase in the minimum energy efficiency standard for private rentals in England and Wales to EPC C by 2030. This aims to reduce energy bills and carbon emissions, supporting the 2030 fuel poverty target and carbon budgets. Following a 2020 consultation, updated proposals include reforms to EPCs as well as the standards that are set against them. 

The new consultation entitled “Improving the energy performance of privately rented homes: 2025 update” was published on 7th February 2025 and closes on 2nd May 2025. It is accompanied by an assessment of policy impact on the sector and is available HERE 

It appears the government’s preferred approach is for landlords to first prioritise meeting a fabric performance metric, similar to achieving an EPC C rating. They should then meet either a heating system or smart readiness metric. This policy aims to lower tenant bills, improve thermal comfort in rental homes, promote low-carbon heating, and enhance energy flexibility. Landlords would need to install measures that improve heat retention, reduce heating system energy use, and enable optimised energy use by occupiers, enhancing overall building efficiency and lowering costs. 

This is largely consistent with what Proficiency has been proposing, as included in our response to the recent consultation on reforms to the energy performance of buildings regime. There is no one size fits all solution when it comes down to matching energy efficiency improvements to both different types of buildings and different ways occupiers use them. We have long argued for a blended approach that balances carbon, cost and real-world practicality. It seems government is finally listening and taking steps in that direction. 

We also must not lose sight of the fact that there are still known limitations in the EPC software that need to be addressed. Government needs to invest properly in updating the software to support these positive steps and must put software updating in the hands people who are at the leading edge of software development. EPC data also needs to be made more useful by enabling “what if” modelling of potential improvements and updated pricing illustrations on the register. 

It is great that we finally seem to be seeing steps in the right direction, however there are many more steps that need to follow these if we are going to successfully complete the journey towards net zero and addressing fuel poverty.