Government Launches Sweeping Review of Building Energy Performance Framework

In December 2024, the UK Government initiated a far-reaching consultation designed to overhaul the Energy Performance of Buildings framework—a foundational pillar of the country’s efforts to improve the energy efficiency of homes and non-domestic properties alike. At the heart of this consultation lies a radical proposal: to reduce the validity period of Energy Performance Certificates (EPCs) from ten years to as little as two.

This proposed reform has sent ripples through the residential property market, construction industry, and landlord community, drawing both applause and concern. While some see it as a vital step toward achieving the UK’s legally binding target of net-zero carbon emissions by 2050, others fear the burden of increased regulatory pressure and costs. In this comprehensive article, we explore the motivations, implications, and potential consequences of this sweeping review.

What Is an EPC and Why Does It Matter?

An Energy Performance Certificate (EPC) provides a rating of a building’s energy efficiency on a scale from A (most efficient) to G (least efficient), accompanied by suggestions for improving the building’s performance. Required whenever a building is built, sold, or rented, EPCs play a critical role in informing potential buyers and tenants about the long-term energy costs and environmental impact of a property.

Since their introduction in 2007 under the EU’s Energy Performance of Buildings Directive, EPCs have been a central instrument in the government’s energy efficiency strategy. However, critics have long argued that the system is outdated, too broad-brush, and insufficiently dynamic to reflect real-time improvements or deterioration in a building’s energy profile.

Why Is Reform Necessary?

There are several factors behind the push for reform:

1. Outdated Certificates

Currently, EPCs remain valid for up to 10 years. In that time, the building fabric, appliances, and even heating systems of a property may change dramatically. A home insulated and fitted with a new heat pump five years ago might still carry the poor EPC rating it had a decade ago. This renders the system ineffective as a real-time reflection of energy performance and hinders progress towards decarbonising the housing stock.

2. Consumer Confusion

Many tenants and buyers treat EPC ratings as current and reliable indicators, unaware that the certificate may be several years out of date. This can lead to misinformation and poor decision-making, undermining efforts to promote energy efficiency in housing choices.

3. Climate Targets

With buildings accounting for nearly 30% of the UK’s total carbon emissions, improving the energy efficiency of the built environment is essential. A more agile and accurate EPC system could play a key role in guiding investment in retrofitting and reducing national energy consumption.

4. Increased Availability of Data

With the rise of smart meters, digital building models, and advanced thermal imaging, the government now has access to more granular data. Reforming the EPC framework could allow for better integration of this information and more personalised, data-driven assessments.

The Government’s Proposals at a Glance

The consultation proposes several significant changes:

1. Reducing EPC Validity Period

Reducing the lifespan of an EPC from 10 years to 5, 3, or even 2 years is the headline proposal. This would compel property owners to update certificates more frequently, ensuring that assessments reflect current conditions.

2. New Performance Metrics

The consultation also considers the inclusion of new performance metrics beyond the basic A-G energy efficiency rating. These may include:

• Heat Loss Performance
• Carbon Emissions
• Smart Readiness Level
• Heat System Type (e.g., gas boiler vs heat pump)

These additions aim to provide more comprehensive insight into how buildings consume energy, helping owners make better-informed retrofit decisions.

3. Mandatory Display for All Properties

Another proposal is to mandate the display of EPCs for all buildings, not just those for sale or rent. This measure could increase public awareness and accountability, and further encourage energy-efficient behaviour.

4. Stricter Assessor Standards

In response to concerns over the variability of assessor quality, the government is exploring more rigorous training and accreditation requirements to ensure consistent and accurate assessments.

Who Will Be Affected?

Property Owners

Homeowners may be required to update their EPCs more frequently, potentially incurring added costs. However, they also stand to benefit from more accurate information about their homes, and possibly increased property value from documented improvements.

Landlords

Landlords are arguably among the most directly affected. With the Minimum Energy Efficiency Standards (MEES) legislation requiring rented properties to meet a minimum EPC rating of E—and with proposals to raise this threshold to C by 2028—the frequency of EPC renewal could place substantial pressure on landlords to keep pace with upgrades.

Tenants

For tenants, the reforms promise greater transparency and potentially lower energy bills, as energy performance becomes a more immediate and visible consideration in rental decisions.

Energy Assessors

This shift could significantly increase demand for EPC assessors, offering opportunities for growth and specialisation, while also increasing the need for high professional standards and regulation.

The Building Sector

New-build developers and retrofitting contractors will find opportunities as property owners seek to improve their ratings. However, they will also face increased pressure to deliver long-term, genuinely sustainable solutions—rather than ‘quick fix’ improvements that temporarily bump up EPC scores.

Benefits of the Reform

If implemented successfully, the proposed reforms could lead to a cascade of benefits:

1. More Accurate Energy Assessments

Shorter certificate lifespans and more frequent updates mean energy ratings would better reflect the current state of buildings.

2. Stimulus for Retrofits

A dynamic EPC framework may nudge more property owners to carry out upgrades, thereby increasing demand for insulation, double glazing, efficient boilers, and heat pumps.

3. Improved Policy Tracking

Better data and more up-to-date assessments would enable policymakers to track progress towards national energy and emissions goals more accurately.

4. Enhanced Public Awareness

Mandating the display of EPCs would help normalise awareness around energy performance, making it a routine consideration in housing decisions.

Criticisms and Challenges

However, the proposals are not without their critics.

1. Cost Burden

Renewing an EPC every 2–3 years could become an administrative and financial burden, particularly for landlords with large portfolios or low-income homeowners.

2. Assessment Inconsistency

There are still widespread concerns about variability in how EPCs are conducted. Without substantial improvement in training and standards, frequent assessments may simply multiply inconsistent data.

3. Limited Predictive Value

Some experts argue that EPCs, as currently formulated, are based on theoretical performance rather than actual energy usage, and may not accurately predict real-world energy consumption.

4. Inequitable Impacts

There is concern that reforms could disproportionately affect vulnerable groups or those living in older housing stock that is inherently harder to retrofit.

A Step Toward Net Zero?

Despite the challenges, the EPC reform consultation aligns with the UK’s broader climate and energy ambitions. The government’s 2021 Heat and Buildings Strategy, the Net Zero Strategy, and the forthcoming Future Homes Standard all signal a decisive shift toward decarbonising the built environment. Making EPCs more accurate and reflective of current conditions is an essential step in this journey.

Industry and Public Reactions

Initial responses from industry stakeholders have been mixed. Organisations such as the Royal Institution of Chartered Surveyors (RICS) and the National Residential Landlords Association (NRLA) have welcomed the drive for accuracy but warned against overburdening small landlords or creating unintended consequences.

Consumer advocacy groups like Which? have also cautiously welcomed the reforms, having previously published investigations into the inaccuracy and unreliability of some EPCs. They argue that, if implemented well, these changes could finally deliver on the promise of EPCs as a genuine tool for energy and financial literacy.

Conclusion: A Necessary Evolution

The UK Government’s sweeping review of the Energy Performance of Buildings framework marks a significant turning point in how we think about, assess, and act upon building energy efficiency. While the reforms present a number of logistical and financial challenges, they also hold the promise of a more accurate, transparent, and effective system—one that better serves the needs of property owners, tenants, and the planet alike.

As the consultation progresses and policy details are finalised, industry voices, advocacy groups, and individuals must stay engaged. This is not merely a bureaucratic change; it is a recalibration of one of the core tools in the UK’s sustainability toolbox.

The EPC of the future—shorter-lived but sharper in focus—may just be what’s needed to illuminate the path toward net zero.

 

Northants EPC offer Energy Performance Certificates throughout Northampton and the surrounding villages.
We also offer Energy Performance Consultations, with a full report on the energy performance of your property and a working plan to improve your rating.

To book and EPC or for further information contact us anytime.
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01604 807308