EPC Reform Delayed: Home Energy Model Postponed to 2027
Timeline shift: October 2030 deadline confirmed. What changes.
Time to read: 2 mins
The UK government has postponed the reform of Energy Performance Certificates, including the introduction of the new Home Energy Model (HEM) methodology. The update, originally scheduled for October 2026, has been deferred to the second half of 2027. The delay affects how properties will be assessed for energy efficiency and the timeline for any future EPC rating requirements on rental properties.
What Has Changed
The existing SAP (Standard Assessment Procedure) methodology remains in place for EPC assessments until the new Home Energy Model is introduced. HEM was designed to produce more accurate property energy assessments, replacing a system considered outdated in how it measures heat pumps and modern insulation. The government has not confirmed a specific date within the second half of 2027, and further guidance is expected later in the year.
What This Means for Landlords
The postponement does not remove the expectation that rental properties will eventually need to meet higher energy efficiency standards. The government’s long-term position on EPC Band C requirements for the private rented sector has not changed.
For landlords currently holding properties rated D or below, the additional time supports a more considered approach to energy improvement works. Upgrade decisions made now, ahead of the new methodology, carry some risk if HEM produces different ratings than the current SAP system.
What to Watch Next
Further government guidance on HEM implementation is expected before the end of 2026. Landlords should monitor announcements from the Ministry of Housing, Communities and Local Government (MHCLG) and DESNZ. The consultation on minimum EPC standards for the private rented sector is a separate process and may move on its own timeline independent of the HEM delay.
Summary
The EPC reform delay provides additional time for planning. The direction of energy efficiency policy has not changed. Landlords with older stock should continue to assess upgrade options against the current EPC framework while monitoring the HEM implementation schedule.
