Energy requirements for renovation work 2027: the buyer’s renovation risk

In October 2026, the Ministry of the Environment published a new decree updating the energy requirements for renovation work. The decree comes into force at the start of 2027, and compliance becomes mandatory for housing companies from 2030. If you are buying an older property, this change affects you more than you might think.

What this is about and why now

Energy requirements for renovation work are not a new concept. They have been in place since autumn 2013. They are now being updated to reflect the EU’s Energy Performance of Buildings Directive.

The core principle remains the same: the requirements do not oblige a housing company to do anything solely for the sake of saving energy. The requirements come into play when a housing company launches a renovation project that requires a building permit. In other words, when windows are replaced, a facade is renovated or ventilation is renewed, energy performance must be raised to a new level at the same time.

And that level is now higher than before.

What the requirements mean in practice

Under the new decree, the energy performance of building components and technical systems must be improved by around 10-20 per cent compared with current requirements. A few concrete examples:

• The thermal insulation of external walls must be improved by 10 per cent beyond current minimum requirements.
• Replacement windows must meet 20 per cent better thermal insulation standards than current requirements.
• Equivalent requirements apply to roofs, ground floors, ventilation, heating and water and drainage systems.

An alternative is to demonstrate improved energy performance through the E-value. In this case, a residential apartment block must show that the E-value has been improved by 15 per cent compared with the building’s original completion point. The minimum requirements for technical systems must still be met under this option as well.

Housing companies therefore have some flexibility in how they comply. In most cases, this will mean additional costs, even if exceptions are possible.

Why this is the buyer’s problem

A housing company decides for itself what is repaired and when. The buyer has no say in that decision. Once the purchase has been made, you are responsible for future costs as a shareholder.

If a housing company has a major renovation project ahead, such as a facade or window replacement, the new energy requirements will push up the cost. Not necessarily dramatically, but not insignificantly either. Better insulation and better glazing cost more than a basic solution.

From a buyer’s perspective, the question is straightforward: do you know what renovation work is coming up in the property, and have you factored in that it will be carried out in line with the new requirements?

When the requirements do not apply to a housing company

There is some flexibility in the requirements. Energy performance only needs to be improved where it is technically, functionally and financially feasible. A housing company can apply for exemptions from the building control authority, but these must be supported by assessments and calculations.

Not all permit-requiring renovation work automatically falls within the scope of the requirements. The key question is whether it is genuinely possible to improve energy performance in the project concerned.

Responsibility for interpretation lies with the local building control authority. In practice, application may therefore vary from one area to another.

What the buyer needs to find out before completing the purchase

The property manager’s certificate and the housing company’s long-term maintenance plan (PTS) are the starting point. These show what repairs have already been carried out and what is planned. However, they do not tell you what the energy requirements mean for this particular housing company’s future projects.

It is worth finding out at least the following:

• Does the housing company have any permit-requiring renovation projects planned in the coming years?
• Have the renovation budgets taken into account the impact of the new energy requirements?
• How old is the building, and how many major repairs are realistically still ahead?

The older the building and the fewer major repairs that have already been carried out, the more likely it is that the renovation queue contains projects that fall within the scope of the energy requirements. Blocks of flats built in the 1960s and 1970s may face facade, window and building services renovations in close succession.

Summary

The new energy requirements do not make buying an older property impossible. They do make cost estimation for future renovation work a more careful exercise. A buyer who knows what is coming is in a better position than one who simply hopes for the best. Precise figures are still difficult to obtain in advance, because application varies from one area to another and the final interpretation always rests with the building control authority.

Renovation risk has always been part of buying an older property. A further layer has now been added, and it is worth understanding before you put your name to a purchase agreement.