The government has launched a consultation to overhaul the Energy Performance Certificate (EPC) system, with significant implications for landlords, property investors, and the wider housing market. The proposed changes aim to align EPCs with the UK’s net zero targets, improving their accuracy and utility while addressing some long-standing criticisms of the system.

However, these changes come with challenges. While they could provide better insights into energy efficiency and support climate goals, they also risk increasing costs and administrative burdens for landlords. For those already grappling with rising compliance demands, the new proposals could raise serious concerns.

This article provides an overview of the proposed reforms, what they mean for landlords and investors, and how to prepare.

Why is the government changing EPCs?
Buildings contribute approximately 20% of the UK’s greenhouse gas emissions. As part of its strategy to reach net zero by 2050, the government sees EPCs as a critical tool for improving the energy efficiency of homes and buildings.

The current system, introduced in 2008, focuses on two metrics:
• The Energy Efficiency Rating (EER), which predicts heating costs.
• The Energy Impact Rating (EIR), which estimates carbon emissions.

However, these metrics have been criticised for being outdated and not always reflecting real-world energy performance. For example, properties with heat pumps - a low-carbon heating option - can score poorly due to higher electricity costs, despite being more environmentally friendly.