The Government has delayed the Home Energy Model (HEM) EPC reform from October 2026 to the second half of 2027. But the MEES 2030 deadline is unchanged. Here is what private landlords need to know and do right now.
If you are a private landlord in the UK, you have probably been keeping a close eye on Energy Performance Certificate (EPC) legislation. The Government has just announced that the rollout of the Home Energy Model (HEM), the reformed EPC methodology set to replace the current Standard Assessment Procedure (SAP), will be delayed from October 2026 to the second half of 2027. At first glance, that might sound like good news: more time, less urgency. In reality, the picture is more nuanced. The Minimum Energy Efficiency Standards (MEES) deadline of October 2030, by which all privately rented properties in England and Wales must achieve at least EPC band C, remains firmly in place. What the delay really means is a narrower window to understand, prepare for and respond to a fundamentally different way of measuring energy performance. This guide explains exactly what has changed, what the Home Energy Model will mean for your portfolio, and the practical steps you can take right now to stay ahead.
What Has Actually Changed: The HEM Delay and What Stays the Same
The Government confirmed that the Home Energy Model will now be introduced in the second half of 2027, rather than October 2026 as previously planned. The decision followed engagement with industry on the delivery timeline, with stakeholders raising concerns about the readiness of assessors, software providers and the wider supply chain to adopt the new methodology within the original timeframe.
For landlords, the key distinction to understand is this: the methodology changes, but the compliance deadline does not. The MEES requirement for all privately rented properties to reach EPC band C by October 2030 is unchanged. This point cannot be overstated. Landlords who interpret the HEM delay as a signal to slow down their upgrade programmes risk finding themselves with insufficient time and, potentially, insufficient access to tradespeople and funding as the 2030 deadline approaches and demand for retrofit services intensifies.
The delay does, however, provide a genuine opportunity. It gives landlords more time to understand what the Home Energy Model will actually assess, to make upgrade decisions that will score well under the new framework, and to access the funding schemes that are available right now. Those who use the extra time strategically will be far better placed than those who simply wait and see.
What the Home Energy Model Means for Landlords: Four Metrics and a Heating System Problem
The current EPC system produces a single A to G rating based on a property's estimated energy costs per square metre. It is a blunt instrument. It was designed decades ago and does not accurately reflect the carbon intensity of a property's heating system, the actual running costs of modern low carbon technologies, or the fabric performance of the building envelope in sufficient detail.
The Home Energy Model replaces that single rating with four separate metrics, each assessed independently:
- Energy Cost Rating: an estimate of the annual energy costs for running the property.
- Carbon Emissions Rating: a measure of the property's greenhouse gas emissions.
- Fabric Energy Efficiency Rating: an assessment of how well the building itself retains heat, independent of the heating system.
- Heating System Rating: a direct rating of the heating system and its fuel type.
Each metric will carry its own A to G band. To achieve overall compliance, a property will need to meet the required standard across all four. This is a fundamental shift from the current system, and it has significant implications for landlords whose properties rely on gas boilers or other fossil fuel heating systems.
Under the Heating System metric within the Home Energy Model, gas boilers and fossil fuel heating systems will not be able to achieve a band C rating. This is the most disruptive element of the new framework for the majority of private landlords, whose properties are currently heated by gas. It means that even a well insulated property with a modern, efficient gas boiler could fail to meet the new EPC C standard under HEM, regardless of how well it performs on the other three metrics.
Properties that are already at EPC band C under the current SAP methodology are in a relatively strong position. They have met the threshold under the existing framework, and their fabric performance is likely to translate well to the new Fabric Energy Efficiency metric. However, landlords with these properties should not be complacent. If the heating system is a gas boiler, there is a real possibility that the property will need a heating system change before or shortly after the HEM is introduced in order to maintain compliance from 2030 onwards.
Landlords with properties currently below EPC band C face a compounding challenge: they need to improve fabric performance, address heating systems, and do so within a fixed timeframe while navigating a methodology that is still being finalised. The delay to 2027 does not ease this challenge; it simply means the assessment rules will not be formally published until closer to the 2030 deadline.
Why Acting Now Still Makes Sense: Spending Caps, Fabric First and Cost Avoidance
One of the most important regulatory details for landlords to be aware of is that improvements made from October 2024 onwards count towards the future MEES spending cap. This means that money spent on qualifying upgrades today will be recognised when the spending cap mechanism comes into force. Acting early does not reset the clock; it builds credit toward the cap from the outset.
The fabric of the building, meaning its walls, roof, floors, windows and doors, is expected to be assessed in a broadly consistent way under the Home Energy Model. The Fabric Energy Efficiency metric is designed to reflect the inherent thermal performance of the structure itself. This means that improvements to insulation made today are likely to carry their full value into the new assessment framework. Insulating now is not a wasted investment.
The most cost effective approach for most landlords is to pursue a fabric first strategy. Reducing heat loss through the building envelope lowers the demand placed on the heating system, which in turn reduces running costs and carbon emissions. A well insulated property is also a more attractive rental property: warmer, cheaper to heat, and less likely to suffer from condensation and damp issues.
Among fabric measures, internal wall insulation (IWI) and cavity wall insulation (CWI) are typically the most significant in terms of both cost and thermal impact. These are also the measures that tend to cause most disruption when fitted, particularly IWI, which reduces room dimensions and requires significant preparatory and finishing work. Landlords who need these measures and delay acting face a double risk: higher costs as demand for installers rises ahead of 2030, and greater disruption to tenancies if the work is rushed under time pressure. Acting now, while demand is lower and funding is accessible, avoids both.
There is also the question of EPC expiry. EPCs are valid for ten years, and if a property's current certificate expires before 2030, the renewal assessment will need to take place closer to the HEM rollout. In some cases, this may provide an opportunity to get an updated assessment that better reflects recent improvements, and to understand where the property stands under the evolving methodology before the 2030 compliance date arrives.
What Funding Is Available Right Now for Landlords and Tenants
The good news is that there is a meaningful range of government funding available to help cover the cost of energy efficiency improvements. Understanding which schemes apply to your properties and tenants is an important part of planning your retrofit programme.
The Warm Homes Plan is the Government's flagship scheme for improving energy efficiency in lower income households. It offers grants of up to £30,000 per property for a package of measures including insulation, heat pumps and other low carbon upgrades. To qualify, tenants must have a household income of £36,000 or less per year, or the property must be located in Index of Multiple Deprivation (IMD) deciles 1 or 2. The property must currently have an EPC rating of D, E, F or G. For landlords with properties in these bands and tenants who meet the income or area criteria, the Warm Homes Plan can dramatically reduce or eliminate the out of pocket cost of bringing those properties up to the required standard.
The Warm Homes Local Grant operates alongside the national scheme and is delivered through local authorities. It targets similar properties and households, with councils having some flexibility in how they prioritise and deploy funding within their areas. If you have a property in a local authority area that has received Warm Homes Local Grant funding, it is worth checking directly with your council or a registered installer to find out whether your property is eligible.
The Boiler Upgrade Scheme (BUS) provides a grant of £7,500 towards the cost of installing a heat pump (air source or ground source) in a domestic property. Crucially, the BUS has no income test. It is available to any property owner, including private landlords, who installs a qualifying heat pump through a registered installer. Given that gas boilers will not be able to achieve a band C on the Heating System metric under the Home Energy Model, the BUS represents a significant financial incentive for landlords to begin transitioning their properties to heat pump heating now, rather than waiting until the new framework is in force and demand for heat pump installers is likely to be considerably higher.
It is worth noting that these schemes can in some cases be combined, and that eligibility criteria and funding levels can change. Seeking advice from a qualified retrofit assessor or energy adviser will ensure you are accessing the maximum support available for each property in your portfolio.
What Landlords Should Do in the Next 12 Months
The HEM delay does not change the fundamental task facing private landlords. Here is a practical framework for making good use of the time between now and the 2027 HEM introduction.
First, audit your portfolio. Understand the current EPC rating of every property you own. Identify those below band C and prioritise them. Note when each EPC expires, because renewal timing can affect your planning.
Second, assess the heating systems across your portfolio. If properties are heated by gas boilers, begin modelling what a transition to a heat pump would cost, what fabric improvements would be needed first to ensure the heat pump operates efficiently, and what grants are available through the BUS and other schemes.
Third, prioritise insulation upgrades, particularly for properties with solid or cavity walls where heat loss is significant. Get IWI or CWI fitted now while installer availability is good and funding through the Warm Homes Plan or Warm Homes Local Grant may be accessible. Remember that improvements from October 2024 count toward the spending cap.
Fourth, stay informed. The Government will publish more detail about the Home Energy Model methodology in the lead up to the 2027 introduction. Understanding how the four metrics will be scored in detail will allow you to make more precise decisions about which upgrades to prioritise for each property type in your portfolio.
Fifth, take professional advice. The interaction between fabric improvements, heating system changes, funding eligibility and the evolving regulatory landscape is complex. A qualified retrofit assessor can provide a whole house plan that sequences improvements in the right order, maximises funding, and ensures every pound spent is working as hard as possible toward your 2030 compliance goal.
Frequently Asked Questions
Does the HEM delay mean the 2030 MEES deadline has also moved?
No. The MEES October 2030 compliance deadline is completely unchanged. All privately rented properties in England and Wales must achieve EPC band C by that date. The delay announced by the Government affects only the methodology used to calculate the EPC rating, not the compliance requirement itself.
My property is already EPC band C. Do I need to do anything?
You are in a strong position relative to many landlords, and your fabric performance should translate well to the new Fabric Energy Efficiency metric under the Home Energy Model. However, if your property is heated by a gas boiler, you should be aware that gas heating will not be able to achieve a band C under the new Heating System metric. This means you may need to plan for a heating system change ahead of 2030. Now is a good time to get a whole house assessment and understand your options.
Can I apply for the Boiler Upgrade Scheme as a landlord?
Yes. The Boiler Upgrade Scheme (BUS) is open to private landlords and has no income test. It currently provides £7,500 toward the cost of a qualifying heat pump installation. This makes it one of the most accessible forms of support for landlords looking to begin transitioning away from fossil fuel heating systems.
What is the fabric first approach and why does it matter?
The fabric first approach means prioritising improvements to the building's thermal envelope, such as wall insulation, loft insulation, floor insulation and double or triple glazing, before upgrading the heating system. This matters because a well insulated property needs a smaller, cheaper heat pump to keep it warm, and because the Fabric Energy Efficiency metric under the Home Energy Model will assess exactly this aspect of performance. Fabric improvements are also expected to be assessed consistently between the current and new frameworks, meaning money spent on insulation now should retain its value under HEM.
Get a Free Consultation with Cucumber Eco
Navigating the evolving EPC landscape is challenging enough without having to do it alone. At Cucumber Eco, we help private landlords across the UK understand their retrofit options, access available funding, and build a practical plan to achieve compliance well ahead of the 2030 deadline. Whether you have one property or a large portfolio, we will give you clear, jargon free advice tailored to your specific circumstances.
Book a free consultation with our team today. We will review your properties, explain what the Home Energy Model means for you in plain terms, identify the funding you may be eligible for through schemes such as the Warm Homes Plan, the Warm Homes Local Grant and the Boiler Upgrade Scheme, and help you put a clear, costed action plan in place. The 2030 deadline is closer than it looks, and the landlords who act now will have more choices, more funding and fewer headaches than those who wait.