Current MEES and the future EPC C trajectory (England and Wales)
The Minimum Energy Efficiency Standards (MEES) Regulations 2015 (SI 2015/962) set the minimum EPC standard for privately rented residential property in England and Wales. From 1 April 2018 (new tenancies) and 1 April 2020 (all tenancies), landlords cannot lawfully let a property with an EPC rating below E. The future trajectory proposes a significant uplift:
- Proposed EPC C minimum for England/Wales: government has consulted on requiring EPC C for new tenancies from 2028 and all existing tenancies from 2030; a new cost cap per property (proposed at £10,000-£15,000) would apply; no Royal Assent as of June 2026 — landlords should plan for this trajectory but monitor for final legislation
- Current civil penalty for MEES non-compliance: £5,000 per property (raised from £4,000 in 2024)
- Current cost cap: £3,500 per property for MEES compliance works (applies to exemption from EPC E requirement where works exceed this cost)
- EPC exemptions (registered on PRS Exemptions Register): high cost; consent refused by tenant or third party; property devaluation (EPC works would reduce market value); temporary exemptions (new landlord; recently renovated)
Boiler Upgrade Scheme (BUS) 2026 and heat pumps in rental properties
- BUS 2026 grant amounts: £7,500 for an Air Source Heat Pump (ASHP); £7,500 for a Ground Source Heat Pump (GSHP); available in England and Wales
- Landlord eligibility: YES — landlords (including buy-to-let landlords) are eligible applicants for BUS; the grant is available for rental properties, not just owner-occupied homes
- Eligibility requirements: valid EPC with no outstanding recommendations for loft insulation or cavity wall insulation (if applicable to the property); if the EPC recommends insulation that has not been installed, the BUS grant cannot be claimed until insulation is done (or an exemption obtained); MCS-certified installer must claim the grant on the landlord's behalf
- ASHP suitability in rental properties: works best in well-insulated properties; requires a compatible radiator circuit (sized for lower flow temperatures — typically larger than gas boiler radiators) or underfloor heating; outdoor space required for the external unit; COP (Coefficient of Performance) of 2.5-4 — every 1 unit of electricity input generates 2.5-4 units of heat; average installed cost before BUS grant: £9,000-£15,000
- Future Homes Standard (England): regulations (delayed to 2026 from 2025 original target) requiring new-build homes to achieve 75-80% carbon emission reduction vs 2013 Part L Building Regulations; new homes built with heat pump heating by default; no new gas connections in new-build residential from 2026; affects landlords purchasing new-build BTL properties from 2026 onwards
Scotland — Heat in Buildings Strategy and Wales — Clean Heat Scheme
- Scotland — current MEES: Private Rented Housing (Energy Efficiency) (Scotland) Regulations 2020 — EPC E minimum for all new tenancies from 1 April 2020; EPC E minimum for all existing tenancies from 31 March 2022; Scottish landlords must provide energy efficiency information at the start of a tenancy
- Scotland — Heat in Buildings Strategy targets: all Scottish homes to reach EPC C or equivalent by 2033; off-gas-grid homes to have zero-emissions heating systems (timetable under review)
- Scotland — proposed Private Landlord Repairing Standard extension: EPC C or equivalent for all Scottish private rented properties by end of 2028 (subject to Scottish Parliament legislation — not enacted June 2026); two years ahead of England's proposed 2030 deadline; Scottish landlords should plan for 2028 as the target horizon
- Scotland — Heat in Buildings grants: Warmer Homes Scotland programme; Cashback for Landlords (check current availability at gov.scot); Scottish landlords should investigate Scottish Government landlord support schemes separately from the BUS (BUS is England and Wales only)
- Wales — Clean Heat Scheme: Welsh Government provides grants towards low-carbon heating (including heat pumps) for eligible Welsh households and landlords — check current Welsh Government guidance for scheme eligibility and amounts; BUS is available in Wales as well as England
- SAP 10.2 and EPC reform: current EPCs use SAP 10.2; government has consulted on moving to numerical scoring and switching the primary metric from operational energy efficiency to operational carbon emissions; under SAP 11 (in development), property ratings may change — landlords making capital investment decisions should be aware that EPC ratings may shift under the reformed system