Energy efficiency rules threaten rural holiday lets

The Countryside Alliance has submitted a robust response to the UK government’s consultation on improving energy efficiency in privately rented homes, raising strong concerns about the potential extension of Minimum Energy Efficiency Standards (MEES) to rural holiday lets. 

In agreement with the Professional Association of Self-Caterers UK we argued that many of the assumptions that underlie the proposals, such as year-round occupancy and tenant responsibility for energy bills, do not apply to short-term rental properties, especially in rural areas. These properties are often used seasonally and are heated minimally in the winter months. Moreover, energy costs are typically borne by the business owner, not a tenant. 

The Alliance opposed the idea of requiring holiday let owners to pay up to £15,000 to pursue the new energy efficiency target – an Energy Performance Certificate (EPC) rating of ‘C’ – even if meeting it will clearly be impossible. We warned that this could be financially ruinous for small rural businesses. With annual profits from rural holiday lets averaging around £5,000 and many rural short-term lets being older and harder to insulate, the proposal could force business owners to invest three years’ profit in failing to meet an unreachable target. 

Crucially, the consultation notes that short-term lets are not currently in the scope of MEES, but it asks respondents whether they should be brought in and begins making a case for doing so. We warned that this would conflict with broader government policies encouraging farm diversification and rural economic growth, such as new rules easing the conversion of agricultural buildings into holiday accommodation since May 2024. 

While we argued for exemptions for rural and listed properties, the Alliance questioned the overall relevance of EPC ratings to the short-term lettings market. We urged the government to avoid a one-size-fits-all regulatory approach that risks damaging rural businesses and communities.