Changes to Energy Performance Certificates
Published byCameron Watson
The UK Government is working towards achieving its net zero emissions target of 2050. The government views property as one of its main focus areas to reach the emissions target.
The UK government is looking to introduce measures to direct property owners in England and Wales to make decisions that have a more positive impact on the environment.
What is an EPC rating?
An Energy Performance Certificate (EPC) is a document that establishes how energy efficient a property is from A (most efficient) to G (least efficient). It is valid for 10 years.
A property's EPC rating provides the costs linked to heating and lighting as well as the level of emissions and the anticipated costs to improve the building.
An EPC band calculation takes into account several factors such as insulation, airtightness, windows and heating systems.
A valid EPC must be in place whenever a property is built, sold or rented. Property owners must obtain an EPC for potential buyers and tenants before the property is marketed to buy or rent, if a current and valid EPC is not already in place.
Minimum Energy Efficiency Standards (MEES)
There are currently no requirements for commercial properties in Scotland to have a minimum standard of EPC rating. However, a minimum energy efficiency standards (MEES) approach is already in force in England & Wales.
MEES requires commercial properties that are in scope to have a minimum EPC rating of E in order to be let. This means that properties deemed as F &G cannot be let unless work is first carried out to improve the energy efficiency. There are, however, exemptions such as listed buildings in certain circumstances.
Current MEES Requirements
Since 1 April 2018 it has been unlawful to let out properties on a new lease with an EPC rating lower than E. 2023 saw the expansion of MEES requirements to impact all existing commercial leases.
How Could Requirements for commercial properties change in the future?
The previous UK government rolled out plans for non-domestic MEES in its Energy White Paper, published in 2020, proposing commercial properties should meet EPC band B by 2030. This was then followed by a consultation paper in June 2021 on proposals for the implementation and enforcement of its EPC B plans, putting forward the introduction of two ‘compliance windows’.
Compliance Window 1:
• 2025-2027: Currently, if an EPC expires mid-tenancy, a landlord is not obliged to get a new one. The first ‘compliance window’ would begin with the requirement for landlords to present a valid EPC in April 2025, at a minimum EPC of E. From April 2027, a minimum of EPC C would need to be presented.
Compliance window 2:
• 2028-2030: The second compliance window would require all let commercial real estate in scope to exhibit an EPC of B by April 2030. The current UK government is expected to stand by the introduction of an EPC B MEES by 2030.
Current Position in Scotland
The Scottish Government has proposed changes to EPCs with the aim of providing consumers with more useful information as to their home’s energy performance with the hope that this in turn will help to reduce emissions from homes and buildings.
The changes include introducing a new rating system with the intention of it being user friendly. Furthermore, the validity of EPCs will be reduced from 10 to five years to help ensure consumers have more up-to-date information.
Depending on parliamentary approval, the proposed new EPCs could be introduced in 2026.
For now, Energy Performance Certificates will not be linked to minimum energy efficiency standards and instead will continue to be used as a source of important information for current and potential occupiers in Scotland. This is distinguished from the rest of the UK where Energy Performance Certificates are linked to minimum energy efficiency standards.
The information contained in this newsletter is for general guidance only and represents our understanding of relevant law and practice as at May 2025. Wright, Johnston & Mackenzie LLP cannot be held responsible for any action taken or not taken in reliance upon the contents. Specific advice should be taken on any individual matter. Transmissions to or from our email system and calls to or from our offices may be monitored and/or recorded for regulatory purposes. Authorised and regulated by the Financial Conduct Authority. Registered office: 319 St Vincent Street, Glasgow, G2 5RZ. A limited liability partnership registered in Scotland, number SO 300336.
