What Are the New EPC Ratings? The Delayed 2027 Overhaul Explained
10 mins read

What Are the New EPC Ratings? The Delayed 2027 Overhaul Explained

What Are the New EPC Ratings and When Are They Actually Coming?

The new EPC ratings are the biggest rebuild of Britain’s Energy Performance Certificates in two decades, and they were supposed to start this month. They will not. The government had planned to launch the new multi-metric EPC system in October 2026, but it has now confirmed the launch will move to the second half of 2027. When the new EPC ratings do arrive, the familiar single A to G letter score will be replaced by four separate headline metrics: fabric performance, heating system, smart readiness and energy cost. Here is what each metric measures, why the overhaul is happening, what it means for the 2030 landlord deadline, and what homeowners should do in the meantime.

Why is the government changing EPCs in the first place?

The current EPC headline rating is based on modelled energy costs, not on how efficiently a home uses energy or how much carbon it emits. That design choice produces perverse results. A homeowner who swaps a gas boiler for a heat pump can watch their EPC rating fall, because electricity costs more per unit than gas, even though the heat pump is the more efficient and cleaner option. The government has said the current single-metric system is insufficient, and the reform is explicitly meant to end this heat pump paradox.

The Home Energy Model, the new calculation method behind the reformed EPCs, will judge homes on more than their bills. It also aims to fix reliability concerns that have dogged assessments for years, since assessor assumptions can make grades vary between surveyors and buildings.

What are the four new EPC metrics?

Under the reformed framework, every domestic EPC will report four headline metrics:

  • Fabric performance: how well the building retains heat, covering insulation, draught-proofing and windows.
  • Heating system: how efficient the heating is. A heat pump counts as an efficient heating system under this metric.
  • Smart readiness: the technology that helps occupants manage electricity use, including whether the property can generate its own energy, for example through solar panels.
  • Energy cost: how much the home costs to run each year, reflecting gas and electricity prices.

Energy use and carbon emissions will still appear on the certificate as secondary information. For landlords, the energy cost metric will remain visible to help tenants decide where to live, but it will not form part of the legal compliance standard. That matters: compliance will be judged on the physical home, not on fluctuating fuel prices.

What will landlords have to meet under the new system?

For private rentals, the planned structure is a dual test. Landlords will need to meet a primary standard against the fabric performance metric, plus a secondary standard of their choosing against either the heating system metric or the smart readiness metric. This two-part approach is deliberately designed so that installing a heat pump is never penalised.

There are also procedural changes. A valid EPC will be required before a property is marketed, removing the current 28-day grace period, and whole Houses in Multiple Occupation will be brought into scope where a single room is let.

When will the new EPCs actually launch?

The launch was expected in October 2026, but the Ministry of Housing, Communities and Local Government and the Department for Energy Security and Net Zero have said that, following engagement with industry on the delivery timeline, they have decided to move the launch of the reforms to the second half of 2027. The previous timetable was judged too ambitious.

Industry reaction has been broadly supportive. Russell Smith, director of energy at Cotality, which owns the Ecofurb retrofit advice service, said there are still important decisions to be made about how information will be presented to homeowners and how landlords will be expected to meet future Minimum Energy Efficiency Standards. His argument is that getting these details right matters, and the industry needs time to update software, train professionals and prepare the supply chain before the new framework launches. For most homeowners, he adds, the delay is unlikely to cause major uncertainty, because the current EPC system is widely understood.

What does the 2030 EPC C rule mean for landlords?

The reformed certificate is the gateway to the big 2030 rule. The government’s Warm Homes Plan, published on 21 January 2026, confirmed that all privately rented homes in England and Wales must reach at least an EPC band C equivalent by 1 October 2030. There will be no separate deadlines for new and existing tenancies: one date covers everything.

The scale of the task is large. Around 2.6 million privately rented homes, roughly 60 per cent of the sector, currently hold a rating of D or below. To keep the cost proportionate, ministers cut the spending cap on mandatory improvements from a proposed 15,000 pounds to 10,000 pounds per property. That cap is reduced further where 10,000 pounds would represent 10 per cent or more of the property’s value. Qualifying energy efficiency works carried out since October last year count towards the limit.

Where a property genuinely cannot reach the standard within the cap, an exemption can be registered on the PRS Exemptions Register. A new solid wall insulation exemption is planned for cases where that measure is the only remaining improvement needed to meet the fabric standard. Letting a property below the standard from October 2030 without a valid exemption will be a regulatory breach, attracting fines and enforcement action.

How do heat pumps fit into the new ratings?

The heat pump paradox is one of the main reasons the reform exists. Under today’s cost-based certificate, the higher running cost of electricity relative to gas can push a rating down even after an expensive clean-heat installation. Under the reformed system, the heating system metric judges the technology itself, so a heat pump registers as efficient and the separate compliance tests for landlords mean the investment is protected.

That makes now a reasonable moment to plan a heat pump. The Boiler Upgrade Scheme continues to offer substantial grants, and we have a full guide to how to claim the heat pump grant. With the reformed EPC designed to reward the technology rather than punish it, the rating system will finally point the same way as the grant system.

What should homeowners do before the new EPCs arrive?

The delay does not change the physics of your home, and fabric-first improvements remain the highest value work you can do:

  • Insulate the fabric: loft insulation, cavity wall insulation or solid wall insulation are the most impactful improvements for reaching Band C, alongside upgrading to an efficient boiler.
  • Cut the draughts: draught-proofing windows and doors is one of the cheapest upgrades with a real effect. See our room-by-room guide to stopping window condensation and mould, which pairs ventilation with sealing work.
  • Upgrade the glazing: double or triple glazing reduces heat loss through the frame and glass, the weakest parts of the building envelope.
  • Add smart heating controls: thermostatic radiator valves, timers and zoned controls help under the smart readiness metric and cut bills under the current price cap, which we covered in our guide to the October 2026 energy price cap rise.

Timing matters too. EPCs lodged today remain valid for 10 years, so there is a clear opportunity to act now under the existing system. Upgrading properties to Band C before the new framework is introduced can secure compliance for the long term while also reducing energy bills. If you have already made improvements, consider commissioning a fresh assessment close to the work, since a new certificate can reflect them.

Finally, the tax window is still open. The zero rate of VAT on eligible energy-saving technologies, covering heat pumps, solar panels, electrical storage batteries and biomass boilers, has been extended to at least the end of March 2027. Book quotes and installations early so the work lands inside the relief.

New EPC ratings: your questions answered

Is my current EPC still valid?

Yes. EPCs are valid for 10 years from the date of issue. A certificate lodged under the current methodology remains valid, and you only need to renew it when it expires or when you sell or let.

Do I need an EPC to sell my home?

Yes. An EPC is a legal requirement when a property is marketed for sale or rent in England, Wales and Northern Ireland, and you can be fined for marketing without a valid one.

Will a heat pump lower my EPC rating?

Under the current cost-based certificate it can, perversely, because electricity costs more than gas. Under the reformed heating system metric it will not: heat pumps count as efficient heating, and landlord compliance tests are designed not to penalise them.

When do landlords need to reach EPC C?

All privately rented homes in England and Wales must reach an EPC band C equivalent by 1 October 2030, with no separate deadline for new and existing tenancies. A 10,000 pound cost cap applies, reduced further where that sum is 10 per cent or more of the property’s value.

When will the new EPC metrics become compulsory?

The government has moved the reform launch to the second half of 2027. The exact dates on which the new metrics become compulsory for different purposes, including the 2030 rental standard, will be set out in legislation as the framework develops.

Leave a Reply

Your email address will not be published. Required fields are marked *