Rural residential lettings – all change on energy efficiency

For farmers in England and Wales renting out residential property, getting to grips with minimum energy efficiency standards (MEES) and energy performance certificates (EPCs) has probably taken up more than its fair share of management time.

The government proposes changes to both the MEES and EPC regimes, with consultations having closed in May and February, respectively.

It looks likely that a requirement for an EPC rating of C or above will be introduced for new tenancies from 2028 and from 2030 for existing ones. Currently, only an E rating is required.

See also: Rural housing – options to decarbonise and improve energy credentials

The consultation does suggest that some of the seven current MEES exemptions will still be available, the main one being where it is prohibitively expensive to achieve the required EPC rating.

However, the minimum spend threshold before an exemption is granted is proposed to rise from £3,500 to £15,000.

Once this level is reached, it will be possible to register for a 10-year exemption, double the current five-year term.

Alexander Macfarlane, head of residential building consultancy at Strutt & Parker, says:

“It might not help a landlord’s pocket in the short term to go above and beyond minimum expectations, but…there is an argument that you could improve the speed of letting and reduce turnaround and void periods.”

EPC assessment changes

New EPC metrics, likely to be introduced from the second half of 2026 and focusing on fabric performance rather than energy costs, are also being considered.

This would make measures such as cavity wall insulation and double glazing the first priority, says Alexander.

It is proposed that short-term lets, such as holiday rentals, are brought within the EPC regime, while listed buildings or those in conservation areas will also require an EPC.

The consultation recognises that generic EPC recommendations are not always appropriate to heritage buildings and proposes finding better ways to tailor them.

Property owners will also be able to take advantage of the MEES exemptions mentioned above.

“It should actually clarify things because, at the moment, many people assume listed buildings are automatically exempt from having to meet the MEES threshold,” says Alexander.

“That’s not quite true because you still have to apply for an exemption by proving that you wouldn’t be able to get planning permission for things like double glazing or solar panels, which can be quite an expensive process,” he adds.

The duration of EPC certificates could change, too. Currently, they are valid for 10 years, but do not need to be updated unless a property is sold or a new tenancy is issued, even if they have expired.

It is being proposed that they should be renewed even if a tenancy is in place. Existing EPCs will remain valid until they expire.

Landlord action

Alexander advises landlords not to take hasty action but first consider whether they are just looking to remain compliant or make a bigger investment to make efficiency savings.

“Don’t rush to dispose of property because of headlines alone. Make a strategic plan and use the exemption system to your advantage to buy some time until there is complete clarity from the government.”