Government announces plan for minimum energy efficiency standards in the private rented sector (PRS MEES)

We have been waiting with baited breath for the government’s response to a consultation launched in February 2025 regarding PRS MEES. Following the latest announcement, finally landlords have certainty about what will be required of them to make their properties more energy efficient.

While the proposals still pose a huge challenge for landlords, with Energy Performance Certificate (EPC) ‘C’ needing to be met by 2030, the CLA has been successful in making meaningful changes to the policy. These CLA wins will benefit landlords of rural and heritage rented properties.

The Warm Homes Plan was launched on 21 January 2026 too, and includes the UK Government’s commitment to further grant funding for upgrade works. "This announcement provides certainty and reassurance," said CLA President Gavin Lane in his reaction. "Particularly to those who are already making upgrades that they will not be penalised in future for taking early action."

• Landlords will need to meet EPC ‘C’ by 2030, where an EPC is legally required, this includes all tenancies which are within scope of the regulations
• Landlords will need to spend £10,000 every ten years trying to reach EPC ‘C’ unless there is a valid exemption (or multiple exemptions)
• EPC ratings will be based on the fabric performance of a property, rather than the cost of running the home, as now
• Landlords will not be forced to upgrade the heating system
• The cost cap will include the cost of procuring an EPC and specialist retrofit advice. It is to be confirmed whether the cost of planning permission or listed building consent will count towards the cost cap
• Expenditure from 1 October 2025 will count towards the cost cap
• Properties which meet EPC ‘C’ under the current system before 1 October 2029 will be compliant until the EPC expires or is replaced
• MEES will not apply to short-term lets, but they will require an EPC.

Further details will come out over the coming months as the government engages further. We still await its full response to the EPC consultation, and the MEES legislation which will be brought forward in 2027. Importantly, there are still questions to be answered – including what properties will be required to have an EPC and when. For example, the government has not confirmed whether a new EPC will be required when an existing one expires, or how the legislation will apply where the landlord responsible for compliance with MEES has a superior landlord, such as is the case with many agricultural tenancies.

We will be updating our CLA guidance notes on EPCs and MEES as appropriate, as well as hosting a webinar later this year. CLA members who are entitled to free advice can be in contact to discuss their properties and management approach.

What was proposed – New tenancies should be compliant by 2028, and existing tenancies by 2030.

What the CLA said – The date that new tenancies should comply should be pushed back to 2030.

The government’s response – There will be a single implementation date for new and existing tenancies, 1 October 2030.

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What was proposed – Properties that have an EPC rating of C against the current metrics before 2026 should be recognised as compliant with the future standard until their EPC expires or is replaced.

What the CLA said – We agreed but suggested this should be for properties compliant anytime before 2030, until their EPC expires.

The government’s response - Private rented homes that score a C or higher against the Energy Efficiency Rating (EER) displayed on existing or new EPCs before 1 October 2029 will be considered compliant with the higher standard until this EPC expires or is replaced.

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What was proposed – The PRS MEES regulations should apply to short-term lets to avoid tenure switching by PRS landlords to avoid the MEES.

What the CLA said – No, introducing MEES to short-term lets does not meet the policy aims and there is no evidence of tenure switching. In follow-up conversations with the government we stressed the importance of not requiring MEES for the short-term let sector. However, we recognised the potential value of an EPC to inform business-owners’ choice to upgrade properties.

The government’s response – PRS MEES will not be extended to short-term lets. These properties will require an EPC.

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What was proposed – A cost cap of £15,000 every ten years.

What the CLA said – We would support a cost cap of up to £12,500, not to rise with inflation, and alongside an affordability exemption linked to rent levels.

The government’s response – A cost cap of £10,000 every 10 years, which will be reviewed every five years from 2030. There will be an affordability exemption for properties valued below £100,000 whereby these properties will be subject to a lower maximum spend requirement equivalent to 10% of the property’s value.

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What the CLA said – The government should explore the possibility of an estate-based, or larger landlord, portfolio cost cap. Some CLA members with medium to large property portfolios are investing heavily in properties’ energy efficiency, and rather than being required to spend £15,000 on every property by a certain date would prefer to invest greater amounts in some properties to complete a full retrofit.

The government’s response – It will explore the possibility and logistics of a portfolio approach exemption whereby landlords with larger portfolios could, instead of assigning a cost cap to individual properties, multiply the cost cap by the amount of properties they have (up to a set amount) and utilise this total across their properties in to meet the higher standard.

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What the CLA said – If heritage properties are brought into the EPC regime, the exemptions under the MEES regulations must be suitable where measures are inappropriate or not possible.

The government’s response – There will be a new ‘negative impacts’ exemption which will allow landlords to register evidence that a specific measure would negatively impact their property. The ‘third-party consent’ exemption remains in place where permission is not granted, and a new ‘solid wall insulation’ exemption will be in place where a landlord could choose not to install solid wall insulation.

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What the CLA said – There should be a 0% interest soft loan from the government over a ten-year repayment period (to align with the cost cap exemption period) to fund works.

The government’s response - Working with the finance industry, it is exploring new low and zero-interest consumer loans, to help more households meet the upfront costs of improving their homes. The government is aiming for the scheme to roll out in phases, expanding over time.

What was proposed – A primary metric of fabric performance and then a secondary metric against either the smart readiness metric or heating system metric, at the landlord’s discretion.

What the CLA said – Subject to changes to the fabric performance metric being more appropriate for traditional and rural properties, we would support the approach. However, we had concerns about the appropriateness of certain heat technologies in rural areas as well as ability to install smart technology.

The government’s response – Fabric performance will be the primary metric. Once the property meets the standard on this basis, or a valid exemption is registered, the landlord must then invest towards installing measures to meet a secondary standard set against either the smart readiness metric or the heating system metric. The choice the secondary metric will be down to the discretion of the landlord. They will never be forced to make upgrades to the heating system if smart technology upgrades are not possible.

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What was proposed – Works from when new EPCs are available (from late 2026) will count towards a future cost cap.

What the CLA said – Works from the date the consultation was launched (February 2025) should count towards a future cost cap.

The government’s response – Works from 1 October 2025 will count towards a future cost cap.