Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Government Admits EPC Rules May Contribute to Rent Increases

The government has acknowledged that landlord EPC (Energy Performance Certificate) targets could be part of the reason for rising rents. This admission came in response to a parliamentary question about the impact of new Minimum Energy Efficiency Standards (MEES) in the private rented sector.

Earlier this month, Green Party MP Hannah Spencer submitted a written question to the Secretary of State for Energy Security and Net Zero. The question asked what assessment had been made of the potential impact of new MEES on private rent inflation. The government’s Warm Homes Plan requires all private rented homes to achieve an EPC level of C by 2030.

In response, Martin McCluskey, parliamentary under-secretary of state in the Department for Energy Security and Net Zero, stated that rental prices are not determined by a single factor. He noted that, as outlined in the final impact assessment, wider market factors alongside this regulation may affect rental prices, regardless of whether properties are required to make upgrades under the MEES regulations.

McCluskey added that the government’s priority is to provide landlords with regulatory certainty and advice to help them plan efficiency upgrades over the coming years, in consultation with tenants. He also stated that the government is committed to protecting tenants’ rights, including giving them the right to challenge unreasonable rent increases under the Renters’ Rights Act 2025.

For letting agents and inventory clerks, these developments highlight the ongoing regulatory changes affecting the private rented sector, particularly around energy efficiency requirements and their potential impact on rental prices.