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The biggest change to EPCs
since 2007

What is happening to Energy Performance Certificates?

Energy Performance Certificates (EPCs) are undergoing their most significant redesign since they were introduced in 2007. Three changes are confirmed and in progress:

  • A new four-score format replaces the single A-to-G rating. From the second half of 2027 every EPC will report Fabric Performance, Heating System, Smart Readiness, and Energy Cost, plus secondary indicators for energy use and carbon emissions.
  • A new calculation engine called the Home Energy Model (HEM) will replace both the Standard Assessment Procedure (SAP) used for new builds and the Reduced data Standard Assessment Procedure (RdSAP) used for existing homes.
  • A confirmed 2030 deadline for landlords in the private rented sector (PRS): properties in England and Wales must reach the equivalent of EPC C by 1 October 2030, under the government's January 2026 Warm Homes Plan.

None of these changes are yet law, but the direction is confirmed and the legislation is in progress. The practical message is: prepare now rather than wait.

From one rating to four scores

Today's EPC produces one letter, based almost entirely on estimated running cost. The reformed EPC will produce four separate scores:

  • Fabric Performance: how well the walls, roof, floor, windows, and doors hold heat in. Better fabric means lower heating demand regardless of the fuel used.
  • Heating System: the efficiency and carbon intensity of the space and water heating equipment installed.
  • Smart Readiness: the ability of the property to respond to signals from the grid, for example by shifting electricity use to off-peak periods.
  • Energy Cost: estimated running cost, which is the metric closest to what the current single rating measures.

Secondary indicators will also show overall energy use (in kWh per square metre per year) and carbon emissions. The four-metric format was confirmed in January 2026. The launch is expected in the second half of 2027 (the original October 2026 date was pushed back). EPC validity stays at 10 years; the earlier proposal to cut this to five years was dropped.

Why is the EPC changing?

The current single rating has a well-documented weakness: it blends fabric quality and running cost into one number, then uses a fuel-price assumption that changes over time. When gas was cheap and electricity was expensive, a gas-heated home looked better than one with a heat pump, even when the heat pump used far less energy. That is the opposite of what a low-carbon policy needs to measure.

Separating the four metrics means a well-insulated home is recognised for its fabric regardless of what heats it, and a heat pump is judged on efficiency rather than the price of electricity.

A partial fix arrived on 15 June 2025, when Reduced data Standard Assessment Procedure (RdSAP) 10 went live for all new domestic EPCs. The updated carbon factors now correctly treat grid electricity as cleaner than mains gas, which means heat pumps score better on carbon than they did before. The cost metric, however, still reflects the fact that electricity costs more per unit than gas at current retail prices, so the headline cost-based rating can still look worse for heat pumps. The four-metric reform addresses this directly.

What is the Home Energy Model?

The Home Energy Model (HEM) is the new calculation engine that will underpin the reformed EPC. It is being developed by the government and replaces both Standard Assessment Procedure (SAP) for new builds and Reduced data Standard Assessment Procedure (RdSAP) for existing homes.

HEM runs on a half-hourly basis rather than the monthly averages used by SAP and RdSAP. That finer time resolution means it can model how a building interacts with variable electricity prices and grid signals, which is what makes the Smart Readiness metric possible. HEM will be the central calculation for all domestic EPCs once the new format launches in the second half of 2027.

The current assessment process, in which an accredited assessor visits the property and records its characteristics, will continue. The data collected feeds into HEM rather than RdSAP, but the visit itself works in the same way.

What does this mean for homeowners?

If you have a current EPC, it remains valid for its full 10-year term. There is no requirement to get a new one before it expires or before you sell or let.

When you do need a new EPC, whether because your current one is expiring, you are selling, or you are starting to let the property, it will be issued under whichever format is current at that point. If the new format has launched by then, you will receive a four-metric certificate. If not, you will receive the current single-rating one.

If you are thinking about improving your property's energy efficiency, the most durable investments are in the fabric: insulation in walls, roof, and floor, and good windows. These improvements score well under the current rating and will score well under the new Fabric Performance metric too. Fabric improvements also reduce heating demand, which means any future switch to a heat pump is cheaper to run.

Thinking about improving your home's energy rating?

Book an Energy Performance Certificate (EPC) assessment and we will tell you your current rating and the most cost-effective route to EPC C.

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What does this mean for landlords?

The confirmed deadline is that all privately rented homes in England and Wales must reach the equivalent of EPC C by 1 October 2030. This was announced in the government's Warm Homes Plan on 21 January 2026 and is the headline commitment of the Minimum Energy Efficiency Standards (MEES) reform.

The key details confirmed so far:

  • Standard: EPC C or equivalent under the new format.
  • Deadline: 1 October 2030 for all privately rented properties in England and Wales.
  • Grandfathering cut-off: A property rated EPC C before 1 October 2029 stays compliant until that certificate expires. This date is the cut-off for grandfathering provisions, not a date on which the assessment method changes.
  • Cost cap: £10,000 per property (up from the current £3,500 cap under the existing EPC E minimum).
  • Penalty: Up to £30,000 per property for non-compliance (up from the current £5,000).
  • Approach: Fabric-first, then heating improvements or smart readiness measures.
  • Exemptions: Where a property cannot reach EPC C within the £10,000 cap, an exemption can be registered. The current EPC E minimum and its £3,500 cap and £5,000 penalty remain in force until the new rules take effect.

Legislation status: The government needs new powers via an Act of Parliament, then a statutory instrument (SI) amending the 2015 Private Rented Sector Regulations. The legislation is expected to be in force during 2027. The policy is confirmed but is not yet law, so some implementation detail can still change.

The practical advice is to start planning now. Many properties already meet EPC C. For those that do not, the most effective route is usually wall and loft insulation first, followed by heating improvements. Starting early gives you more time to choose measures, obtain grants, and spread costs.

Not sure where your rented property stands?

Book an EPC and we will tell you the current rating and the most cost-effective route to EPC C before the 2030 deadline.

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Key dates at a glance

Date What happens
15 June 2025 RdSAP 10 goes live for all new domestic EPCs. Updated carbon factors treat electricity as cleaner than mains gas.
21 January 2026 Warm Homes Plan confirms EPC C by 2030 for the private rented sector, the four-metric EPC format, and 10-year validity.
2026 to 2027 Enabling legislation passes through Parliament. The exact date is expected to be announced in summer 2026.
Second half of 2027 New four-metric EPC format launches, powered by the Home Energy Model (HEM). New-style certificates issued from this point for all new assessments.
1 October 2029 Grandfathering cut-off date for the 2030 landlord deadline. Tenancies signed before this date may have transitional provisions; this is not a date on which any assessment method changes.
1 October 2030 All privately rented homes in England and Wales must be at EPC C or equivalent. Penalties of up to £30,000 apply for non-compliance.

Further notes

This page covers the position in England and Wales. Scotland and Northern Ireland operate separate EPC regimes with their own timelines and requirements. If your property is in Scotland or Northern Ireland, contact us and we can point you to the relevant guidance.

All information on this page reflects confirmed government policy and announced timelines as at June 2026. The legislation is still in progress and some implementation detail may change. We will update this page as the picture becomes clearer.

Last reviewed: June 2026

Frequently asked questions

When are EPCs actually changing?

The new four-metric EPC is due to launch in the second half of 2027. It is confirmed government policy but not yet written into law; the enabling regulations are expected during 2026 and 2027.

Is my current EPC still valid?

Yes. Existing Energy Performance Certificates remain valid for their full 10 years from the date they were issued. The proposal to shorten validity to five years was dropped.

Do I need a new EPC straight away?

No. You will need a new-style EPC when you next sell or let, or when your current one expires. There is no requirement to replace a valid certificate early.

What is the deadline for landlords?

Privately rented homes in England and Wales must reach the equivalent of EPC C by 1 October 2030. This is confirmed government policy from the January 2026 Warm Homes Plan; the legislation to enforce it is still being taken forward, so some detail can still change.

How much could it cost landlords?

The new standard sets a cost cap of £10,000 per property, with exemptions where a home cannot reach the standard within that cap. Many homes will not need the full amount. The current minimum (EPC E) keeps its existing £3,500 cap until the new rules take effect.

Do short-term and holiday lets have to reach EPC C?

The EPC C by 2030 standard applies to the private rented sector (PRS). Holiday lets and other short-term lets have their own EPC requirements; check your specific situation with us before assuming the 2030 standard applies.

Do EPCs still use out-of-date 2012 carbon figures?

No. Since RdSAP 10 went live on 15 June 2025, EPCs use updated carbon figures that correctly treat electricity as cleaner than mains gas. The reason a heat pump can still affect the headline rating is that today's rating is based on running cost, and electricity costs more per unit than gas, which the new four-metric format is designed to address.

Will a heat pump help or hurt my EPC rating?

On carbon, a heat pump now scores well. On today's cost-based headline rating it can still look worse because electricity is dearer per unit. The reformed EPC separates heating performance from running cost, so a heat pump is judged on its own merits.

You may also be interested in:

Landlord MEES Guide
Current and Proposed MEES Regulations
Domestic EPC and RdSAP explained
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