Sustainability regulations in the real estate sector are becoming increasingly important as the UK moves towards its net-zero emissions target by 2050.

Developers, property managers, and landlords are faced with a growing list of regulations that aim to reduce carbon emissions, improve energy efficiency, and promote environmentally responsible building practices.

The most immediate regulatory concern is the Minimum Energy Efficiency Standards (MEES). Since 2018, properties in the UK have been required to have an Energy Performance Certificate (EPC) rating of at least “E” to be rented or sold. However, starting in 2025, properties with an EPC rating below “E” will be banned from being let, which means that landlords must act now to upgrade their properties(1).

These upgrades might include adding insulation, replacing inefficient heating systems, and incorporating energy-efficient lighting and appliances.

In addition to MEES, carbon reporting regulations are becoming more common for larger real estate companies. These regulations require firms to disclose their carbon emissions and other environmental impacts, helping to track the UK’s progress toward its carbon reduction targets. Companies that fail to comply with these regulations can face fines and reputational damage(2).

Developers are also facing more stringent waste management regulations. The push for sustainable construction practices is leading to stricter rules around how construction waste is handled, encouraging developers to recycle and reduce the environmental impact of their projects(3).

With these regulations set to intensify in the coming years, real estate companies that prioritise sustainability will be better positioned to succeed in an increasingly eco-conscious market.

By staying ahead of the regulatory curve, businesses can ensure compliance while benefiting from lower operating costs, higher property values, and a stronger reputation.

Bibliography

1 Domestic private rented property: minimum energy efficiency standard - landlord guidance (Accessed May 2025) https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance

2 Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting requirements  (Accessed May 2025) https://www.gov.uk/government/publications/environmental-reporting-guidelines-including-mandatory-greenhouse-gas-emissions-reporting-guidance

3 Classify different types of waste: your legal responsibilities (Accessed May 2025) https://www.gov.uk/guidance/classify-different-types-of-waste-your-legal-responsibilities