On the 7th of February 2025, the government launched the ‘Improving the energy performance of privately rented homes: 2025 update’ consultation. The consultation seeks to find the optimal way to go about raising Minimum Energy Efficiency Standards (MEES) in privately rented homes across England and Wales. Ultimately the goal is to reduce carbon emissions, tackle fuel poverty and provide warm homes for tenants nationwide. They are looking for responses from anyone who has an insight into the industry and could help them refine their plan.
The Purpose of The MEES Consultation
The new consultation follows on from the consultation launched in 2020 with updated proposals to account for new and relevant considerations. The world has changed since 2020, and the energy efficiency sector is no exception. We’ve seen advances in energy efficiency technology and proposed reforms to EPCs. So, a new consultation is necessary to take these developments into account.
Through the consultation, the government proposes raising MEES for privately rented homes to an EPC Rating of C by 2030. Currently, the minimum standards sits at EPC E, where it has been since the launch of MEES in 2018. However, this low rating does not support the country’s Net Zero or energy security goals. Thus, it must be adjusted.
Ultimately, the new consultation has been designed to reduce carbon emissions and reduce energy bills in line with the government’s targets. Also, the new proposals should help reduce fuel poverty among the private rented sector.
Why The Private Rented Sector?
Why target the private rented sector specifically? Put simply, it has the highest rate of fuel poverty in the UK. In England in 2022, 24% of private rented sector households were considered to be in fuel poverty under the Low Income Low Energy Efficiency (LILEE) metric, equating to 35% of all fuel poor households. This means that it is a real problem area which requires attention.
Your Role
In this 2026 PRS consultation, they are seeking stakeholder views on the approach to new PRS standards. They are particularly looking for responses from:
- key stakeholders including private rented sector landlords (including those who are leaseholders),
- tenants
- local authorities and the supply chain (energy efficiency installers, Domestic Energy Assessors etc.)
- anyone affected by or concerned by raised energy performance standards in the privately rented homes or representing the interests of the sector.
Primary Proposals
A Set Order For Energy Efficiency Upgrades
The government is encouraging a ‘fabric first’ approach through their proposals. The consultation includes plans to dictate the order in which energy efficiency measure must be made. It demand that landlords prioritise improving a property’s fabric performance first. This would involve upstaging the insulation, windows and walls. This standard would require similar upgrades as reaching an EPC rating of C under the current system.
Once this has been done, the landlord can then move on to one of two other areas:
- The heating system metric (improving heating efficiency and reducing emissions).
- The smart readiness metric (enhancing energy flexibility and optimisation).
The landlord is able to choose which of these metrics he wants to meet depending on what best suits the property.
The Smart Readiness Metric
If a landlord opts to meet the standard based on the smart readiness metric, their EPC may suggest measures like smart meters, solar panels, heat batteries, and other load-shifting appliances. These upgrades would enhance the building’s energy demand flexibility, allowing tenants to use energy more efficiently. When combined with fabric improvements made to meet the fabric performance standard, these measures would help maximise energy bill savings for tenants.
The Heating System Metric
Alternatively, a landlord could choose to meet the standard based on the heating system metric, which may involve installing a heat pump, upgrading heating controls, or improving radiators. These measures would support the decarbonisation of the building’s heating system and, when combined with fabric improvements made to meet the fabric performance standard, help ensure the system operates efficiently and affordably.
In either case, these upgrades should lower energy bulls for tenants, improve thermal comfort and support decarbonisation.
A New Cost Cap
The consultation includes proposals for a new cost cap. Previously, the 2020 consultation suggested a cost cap of £10,000. However, the government is of the mind that this does not account for the scope of upgrades which are required to meet current targets. Thus, they have suggested a new cost cap of £15,000. They have, however, stated that this sum is fixed and will not increase with inflation, so that landlords can have a sense of stability. The cap is aimed to ensue that a wider range of properties will be lifted out of fuel poverty, making them warmer and cheaper to heat.
In practical terms, this means that landlords would be required to make improvements to their properties up to the value of £15,000. If they invest this much money and still cannot reach an EPC rating of C, then they would have to apply for a ten year extension to still be able to rent the property.
Along with the £15,000 cost cap, the government are also considering an ‘affordability exemption’. This exemption would lower the cost cap to £10,000 for some properties.
Further Proposals
The consultation is also seeking views on:
- Expanding PRS Regulations – Considering whether to extend the scope of PRS Regulations to cover short-term lets, ensuring consistent standards across all privately rented properties.
- Smart Meter Installation – Exploring regulatory measures to encourage the installation of smart meters in privately rented homes.
- Exemptions in PRS Regulations – Reviewing the current exemptions framework and assessing whether additional exemptions should be introduced.
- PRS Compliance Database – Favouring the decision not to create a separate PRS MEES compliance database, as the government plans to establish a broader PRS Database under the Renters’ Rights Bill.
- Temporary Exemption for New Landlords – Proposing a simplified temporary exemption for new landlords, applying to anyone who acquires a property already let under an existing tenancy at the time of purchase or transfer.
- Local Authority Disclosure & Benchmarking – Planning to introduce local authority disclosure when a property breaches PRS Regulations to improve transparency.
- Local Authority & Tenant Powers – Supporting enhancements to tenants’ rights through the Renters’ Rights Bill rather than separate PRS-specific measures.
You can access the full ‘Improving the energy performance of privately rented homes: 2025 update’ consultation and Options Assessment here.
How To Respond
The government have requested that responses are submitted online via their Citizen Space link
If this isn’t an option, then you can email them at PRSMEESConsultation@energysecurity.gov.uk .
Or, you can write to:
Head of the Private Rented Sector Strategy
Department for Energy Security and Net Zero
3-8 Whitehall Place
London
SW1A 2EG
The government recommends specifying whether you are responding as an individual or on behalf of an organisation. Your response will be most valuable if it directly addresses the questions asked, though additional comments and supporting evidence are also welcome.
