Short Term Lets to be Excluded from Minimum EPC Threshold

Short-term accommodation providers across England and Wales have received a significant boost following confirmation that the sector will be exempt from the proposed Minimum Energy Efficiency Standards (MEES).

After discussions with the Department for Energy Security and Net Zero (DESNZ), it has been confirmed that short-term rental and self-catering properties will not be required to meet a minimum EPC C rating, as had previously been proposed. The original proposal would also have required property owners to demonstrate spending up to £15,000 in attempts to reach that energy efficiency threshold.

While properties in the sector will still be required to hold a valid Energy Performance Certificate (EPC), there will be no minimum energy efficiency standard that must be met for owners to continue operating.

Government officials noted that evidence reviewed during the consultation process did not support two of the central concerns behind the proposed changes: that property owners were moving homes from long-term rental markets into short-term letting at scale, and that fuel poverty—one of the core issues MEES seeks to address—was prevalent in the short-term accommodation sector.

Strong Industry and Parliamentary Engagement

The decision follows extensive engagement from accommodation providers, industry bodies, and policymakers. Thousands of property owners and operators contributed to consultations, submitted case studies, and contacted MPs and Members of the Senedd to outline the potential impact of the proposals on businesses, tourism, and local economies.

Key tourism and hospitality organisations also expressed concerns about the proposals, highlighting the distinct nature of short-term accommodation compared with long-term rental housing.

Several MPs and MSs raised the issue in Parliament and wrote to Ministers, urging a more proportionate and evidence-based regulatory approach.

A More Proportionate Regulatory Outcome

The outcome provides greater certainty for short-term accommodation operators and reflects a more tailored approach to regulation, recognising the differences between short-term and long-term rental markets.

At the same time, the decision maintains requirements for transparency around energy performance, ensuring that guests continue to have access to EPC information when booking accommodation.

Industry stakeholders have thanked the Department for Energy Security and Net Zero for its engagement throughout the consultation process and for considering the evidence provided before reaching a final decision.