A new government assessment model is changing how rental properties are rated — and it changes the maths for anyone still on gas, oil, LPG or basic direct electric heating.
From the second half of 2027, Energy Performance Certificates in England will be calculated using a completely new government methodology called the Home Energy Model (HEM) — replacing the SAP/RdSAP system that's been used for years. Instead of a single A–G rating, HEM introduces four separate metrics, with compliance measured against two of them: a primary Fabric Performance rating, plus your choice of either Heating System or Smart Readiness as a secondary metric.
For private rental properties in England, the Minimum Energy Efficiency Standards (MEES) require every rental to reach EPC C or equivalent by 1 October 2030 — assessed under this new dual-metric model.
Here's the part that catches a lot of landlords out. For any property heated by a gas, oil or LPG boiler — including modern condensing models and hybrid systems — the Heating System metric itself cannot score higher than Band D. It doesn't matter how new, efficient or well-maintained the boiler is: the fuel type itself sets the ceiling on that metric.
It's not just fossil fuels, either. Direct electric heating with no storage or flexibility — think electric combi boilers or panel heaters — also caps the Heating System metric at Band D or below. Simply going electric isn't enough on its own; it needs to be a genuinely efficient, flexible system.
Compliance is assessed on Fabric Performance plus a choice of either the Heating System or Smart Readiness metric — so this cap applies specifically to the Heating System score, not automatically to every property's overall result. But for most landlords, the Heating System metric is the clearer, more reliable route to compliance, and fossil fuel or basic electric heating caps that route at D regardless of how good the rest of the property is. A heat pump, by contrast, is the system HEM is actually designed to reward.
If your rental is currently heated by oil or LPG, you're in the strongest position to act — and have the biggest financial incentive to do it now. As an off-gas-grid property, you may qualify for the enhanced £9,000 Boiler Upgrade Scheme grant (standard homes qualify for £7,500), which comes straight off the cost of your quote. But this enhanced grant is only available until 31 March 2027 — well before most landlords will even start thinking about the 2030 deadline.
Switching now means you lock in the bigger grant, get ahead of the rush as the 2030 deadline approaches, and start benefiting from lower running costs straight away — instead of competing for an installer in 2029 with every other landlord in the country.
You may also be able to combine the BUS grant with incentives from your mortgage or landlord finance provider — click here for more.
Talk to us about a heat pump quote for your rental property — free, no-obligation, and we'll confirm your Boiler Upgrade Scheme eligibility while the grant is still available.
Get a Free Quote