Later this year we will introduce regulations to reform EPCs, with new EPCs going live in 2026. This will mean that from Autumn 2026 the ratings that will appear on an EPC will differ to those currently shown. Current domestic EPCs have a headline rating that is based on the cost to run the home, alongside a rating that is based on carbon emissions intensity. The new EPCs will provide three headline ratings:
1. Heat Retention Rating (HRR) – this will demonstrate the performance of the building's fabric (i.e. how well the building retains heat due to insulation and other factors);
2. Energy Cost Rating (ECR) – which will be similar to the current ‘Energy Efficiency Rating’ displayed on existing EPCs. This will be based on the annual costs of running the building to standard conditions, normalised to floor area, and how these costs could change as a result of the potential improvement options; and,
3. Heating System Rating (HSR) – which will show whether the installed heating system is polluting, hybrid or clean, and its emissions and efficiency.
We propose that the PRS MEES will be measured against the HRR on reformed EPCs, and that the standard to be met will be HRR band C, which is a good level of energy efficiency. This means that landlords would be prohibited from letting a property unless it meets the new EPC HRR band C, has all relevant energy efficiency measures installed, or is exempt.
