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Changes are coming to EPC regulations – here’s everything landlords need to know

If you’re a landlord, your property’s Energy Performance Certificate (EPC) is not a tick-box requirement. It can ultimately determine if you can legally rent it out.

With the UK government planning to change the way EPC is calculated, along with raising the minimum standards, it’s worth thinking about your rentals now – and what you need to do to stay compliant.

What is EPC and why does it matter?

An EPC gives a home an energy efficiency rating from A (most efficient) to G (least). For tenants, it’s a useful guide to how costly it will be to heat and light the home. For landlords and lenders, it’s a marker of how energy efficient the property is and will tell you what its CO₂ emissions are likely to be.

Under current rules in England and Wales, landlords must provide a valid EPC when marketing a property to let. The legal minimum for rental properties is a rating of E. Anything lower, and you’re not allowed to let the home – unless an exemption applies. Homes used less than four months a year or listed buildings can apply for an EPC exemption.

Your EPC is valid for 10 years from issue but legally required to be renewed if the home is rented to new tenants or sold.

The minimum standard is rising

Although it hasn’t yet become law, the government has made clear its intention to raise the minimum EPC rating for rentals from E to C. The current proposal is for this to apply to all new lettings from 2028, and to all existing lettings by 2030.

This change is part of the wider push to make homes more energy efficient and reduce the country’s carbon emissions, in line with the UK’s target to be net zero by 2050. While the dates could shift slightly, it’s clear landlords should start preparing now.

Property improvement cost cap to rise

Landlords are currently able to apply for a five-year exemption if they can prove that improvement works to reach EPC C will cost more than £3,500 (including VAT). However, this minimum cost is set to rise to between £10,000 – £15,000 including VAT. The government says this would be sufficient to bring more than 90% of D-rated properties and 60% of E-rated properties up to a C rating.

This means if you cannot reach the EPC standard, you will be required to invest more money to qualify for an exemption.

How EPC is calculated is changing too

Another big update coming is how EPCs are assessed. Until now, EPC ratings have been based on the cost of heating and powering homes. But under the new system, the calculation will focus on the environmental impact of homes.

Your rental property’s EPC rating would be influenced by multiple factors such as energy cost, carbon emissions, energy use, fabric performance (how well the home retains heat), the efficiency of heating sources and how ready the home is to adopt smart tech to optimise energy use.

This change could lower the EPC rating for many properties, especially those that rely on gas heating.

What this means for landlords and how to prepare

If you’re a landlord and your property is already rated C or above, you may not need to do much in the short term. But if your EPC shows a D or below, it’s a good idea to think ahead.

We recommend getting a fresh EPC assessment, especially if your current one is a few years old. Some older certificates may underestimate your property’s energy efficiency. In some cases, small upgrades, like fitting LED lights or improving loft insulation, might be enough to boost your rating by a band or two.

Bigger changes, like fitting double glazing, upgrading the boiler or switching to electric heating, may also be necessary for some homes. You could look to switch to renewable energy to power and heat homes, such as by installing solar panels and air source heat pumps.

Planning and spreading the cost of these improvements now could help avoid a last-minute rush closer to the 2028 or 2030 deadlines, when demand and prices are likely to rise.

Don’t forget the impact on mortgages

More lenders are starting to take EPC ratings into account when assessing buy-to-let mortgage applications. Some are already offering better rates or cashback deals for landlords with properties rated A to C. As these changes happen, having a lower-rated property could limit your options or increase your borrowing costs.

If you’re buying a property to rent, it’s worth considering the EPC rating as part of your decision-making – especially if the home might need costly upgrades to meet future rules.

What happens if you don’t comply?

If your property doesn’t meet the minimum EPC standard when the new rules come in, you may not legally be allowed to rent it out. That could mean lost income, a forced vacancy, or having to make urgent (and expensive) improvements. There’s also the risk of fines of up to £20,000 if you continue to let a non-compliant property.

We understand that keeping on top of new regulations can be time-consuming, especially if you’re juggling several properties or working with older homes.

If you’re unsure about your property’s current rating, want help arranging a new EPC assessment, or would like advice on what improvements to prioritise, we can help.

Get in touch or pop into the office – we’re happy to chat through the changes and help you make a plan.

01722 336 422 or email lettings-management@hwwhite.co.uk.