C’ You Soon! MEES Changes in Residential Lettings

With the imminent and seismic changes taking place in the world of residential lettings, landlords already have a lot to grapple with, but more is on the way.

Many of the changes introduced by the Renters’ Rights Act 2025 aim to improve housing standards in the private rented sector. Alongside these, the Government has proposed changes to the rules governing minimum energy efficiency standards (MEES) in rented homes.

For several years, there has been discussion of requiring most properties to achieve higher than the current ‘E’ rating needed to be legally let. A consultation on this issue took place last year, and the Government has now published the results.

The headlines are:

• The EPC will change. Rather than a single overall grade, the certificate will be split into four categories – energy cost, fabric performance, heating system, and smart readiness – making it more useful to occupants. The plan is to introduce this new form of EPC during 2026.
• Residential rental properties will be required to meet a ‘dual metric standard’, expected to be equivalent to the current ‘C’ rating, by 1 October 2030 in order to be let.
• The dual rating will require properties to meet the specified fabric performance standard.
• Landlords can then choose to improve either the smart readiness metric or the heating system metric to achieve the required rating.
• Landlords may need to invest up to £10,000 per property to reach the standard. If the property still does not meet the requirement despite this investment, a 10-year exemption can be applied for. (Any money spent on energy efficiency improvements from 1 October 2025 will count towards the £10,000 cap.)
• At the end of the 10-year exemption period, further investment will be required before a new exemption can be sought.
• The exemption regime will be updated, with new exemptions such as ‘negative impacts’ and a ‘solid wall’ being introduced.
• The maximum fine proposed for non-compliance will be £30,000 per property.

It is important to note that these provisions are not yet final. The Government proposes bringing forward legislation in 2027. Much may change before then, but the direction of travel is clear, allowing landlords to begin budgeting for and scheduling improvements to their rental portfolios.

As we have highlighted in previous insights, now is the time for landlords to review the condition of their rental stock. Older properties may struggle to meet the Decent Homes Standard or any new MEES requirements. Where sales and reinvestment are needed, landlords should be acting now to progress these plans.

How we can help

Our Property Litigation team regularly advise landlords and property owners on compliance issues, regulatory change, and the practical implications of reforms affecting the private rented sector. If you would like guidance on how the proposed MEES changes may affect your property portfolio, or advice on planning next steps, our teams can provide clear, tailored support.

You can arrange a preliminary, no-obligation call to discuss your circumstances and understand your options. Please contact our legal experts to find out how we can help.

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