EPC Reform: England and Wales

[Update: The launch of HEM based EPCs has been delayed until late 2027]

Government has been very busy this week with publications regarding the energy performance of our homes.

The release of the Warm Homes Plan was closely followed with news of a total overhaul of Energy Performance Certificates.

We knew this was coming, and broadly follows a recent announcement from Scotland. Some pieces of this puzzle will follow in the coming months, but here's what we know so far:

⏰ EPCs are changing from THIS October!

It's an ambitious timeframe that aligns with Scotland, and there's a tonne of work to be done to make this a reality.

We'll need new software, law changes, upskilled DEA assessors, government marketing... the list goes on

This draft EPC example from Scotland shows the single A-G rating will be replaced with three ratings, focusing on fabric performance, running costs, and the carbon intensity of the heating system.

🟢 The single A-G metric is out.

We currently use EPCs to answer questions it was never designed for. Classifying a house as 'B-rated' or 'F-rated' is too basic for things like deciding mortgage rates.

The new-look EPC will be a dashboard of different metrices so the user can hone in on the most relevant calculation:

🏚️ Fabric performance: An A-G rating to rank the heat loss through the dwelling's walls, roofs, floors and windows.

💲 Energy Cost: Similar to the current rating, but calculated far more accurately. (See next post)

♨️ Heating System: Compares heating efficiency and the emissions of the heating fuel. This will encourage high-efficiency electric systems.

☀️ Smart Readiness: Homes will score high if they're equipped with PV panels, batteries and load-shifting tech on smart energy tariffs.

🧮 And if those still don't give you the data you need, there will also be information on the dwelling's energy use and carbon demand.

As a temporary measure, to help with the expected confusion created by this overhaul, the new-style EPC will also attempt to predict what the old-style EPC would have rated the property.

This feature will be phased out as soon as everyone's on board with the new system.

🏭 These changes are for domestic properties only. Changes were considered for non-resi assessments, but the single emission-based rating is going to remain for now.

💻 To accurately calculate all this extra information, we have to say Good-Bye to SAP (including the short-lived rdSAP10).

New-style EPCs will be calculated with the Home Energy Model (HEM) using a specific EPC Wrapper for existing buildings. The transition from old-to-new won't be instant; both types of EPC will be in circulation for a good few years.

🧱 The EPC change means Minimum Energy Efficiency Standards (MEES) also need to change. From 2030, all private rentals will need a C-fabric rating. (Not the same as the current SAP based C rating.)

Also, some grey areas about EPCs are being tidied up:

🛒 You currently need an EPC at point of sale. That’s being brought forward so an EPC is needed before it is marketed by estate agents.

🏦 Houses of Multiple Occupation (HMOs) will need a single EPC for the whole building.

⛱️ Short term rentals (like AirBnBs) will no longer be exempt, so EPCs will be required.

🏰 Heritage buildings will no longer be EPC exempt either (but they will be exempt from some MEES requirements).

More about the roll-out of HEM-based EPCs and the new MEES targets to follow...