Energy efficiency standards for private landlords to undergo significant revision in the course of the most extensive energy savings campaign ever.
The government has announced plans to tighten energy efficiency standards for rented homes in England and Wales, aiming to improve the energy performance of properties and reduce carbon emissions. Here's what you need to know about the evolving EPC requirements and their implications for landlords.
A Clear Path Towards Energy Efficiency
Chris Norris, policy director at the National Residential Landlords Association (NRLA), has emphasized the need for a clear trajectory for energy efficiency improvements and sufficient numbers of tradespeople to undertake the required work. Similarly, Timothy Douglas, Head of policy and campaigns at Propertymark, has stated that new energy efficiency requirements for landlords must be realistic and achievable, and that landlords should be provided with incentives and sustained funding to meet energy efficiency targets.
The Renters' Rights Bill and EPC Changes
The government's plans to revive the Energy Performance Certificate (EPC) requirements for landlords come as the Renters' Rights Bill, which was lost in a general election, has been brought back to Parliament in the form of Labour's Renters' Rights Bill. Under the proposed plans, private and social landlords will have to improve their EPC score to grade C or above by 2030.
Timeline for EPC Improvements
- New Tenancies by 2026: All new tenancies are expected to require a minimum EPC rating of Band C or better starting in 2026.
- Existing Tenancies by 2028-2030: Existing tenancies are projected to meet Band C requirements by 2028 or 2030.
Cost Cap on Upgrades and Exemptions
The government proposes a £10,000 cost cap on required energy efficiency improvements per property, up from an earlier £5,000 cap. Exemptions are available for properties where upgrades are not cost-effective, technically feasible, or would damage building character (e.g., listed buildings).
Assessment Method Update and Penalties
From June 2025, a new EPC assessment method called RdSAP 10 is being used, which offers more precise measurement, focusing on real energy efficiency factors like window glazing, heating systems, smart controls, and insulation. Non-compliance penalties are set to increase significantly with proposed fines up to £30,000 for letting properties that do not meet the Band C standard.
Potential Costs and Challenges
Around 60% of current private rental homes fall below Band C, implying widespread need for upgrades. Upgrade costs can be substantial but are limited by the £10,000 maximum cap, after which properties may qualify for exemptions. Improvements might involve insulation, heating system upgrades (e.g., heat pumps), window replacements, and smart controls. Certain properties, especially listed or older buildings, may face technical and heritage-related barriers, increasing complexity and cost or leading to exemptions.
Government Support and the Buy-to-Let Sector
The government support schemes exist, such as the Boiler Upgrade Scheme (grants up to £7,500 for heat pump installation), Home Upgrade Grants, and funding assistance programs to ease financial burdens on landlords. Rightmove's director of property science, Tim Bannister, has called for help for the mass market to transition to greener homes, particularly for landlords of lower-value properties, as the financial returns may not always justify the investment.
The Current Minimum EPC Rating and the Future
As of mid-2025, the current legal minimum EPC rating for landlords in England and Wales is Band E, meaning properties rated F or G cannot be legally rented out. However, the government is progressing toward stricter EPC requirements aiming for Band C or above. The introduction of the updated RdSAP 10 assessment method also means EPCs will more accurately reflect actual energy performance from mid-2025 onward.
In summary, while the band E minimum remains mandatory now, landlords should prepare for the rising standard to Band C by 2026 for new lets and by 2028-2030 for all lets. This will involve investments capped at £10,000 for required works, with exemptions available where necessary. The transition presents significant financial and logistical challenges due to the proportion of properties currently below Band C, but government grants and support programs aim to mitigate these burdens.
[1] Gov.uk: Minimum Energy Efficiency Standards [2] Rightmove: The Cost of Greening Britain's Rental Homes [3] Propertymark: Government announces consultation on minimum energy efficiency standards in rented homes [4] NRLA: NRLA welcomes government consultation on minimum energy efficiency standards in rented homes [5] Gov.uk: Consultation on Minimum Energy Efficiency Standards in Private Rented Property
- In the context of the evolving Energy Performance Certificate (EPC) requirements, Chris Norris from the National Residential Landlords Association (NRLA) underscores the importance of having a clear path towards energy efficiency improvements, while also emphasizing the need for a sufficient number of tradespeople to carry out the required work.
- The proposed amendments to EPC requirements for landlords, aiming at reducing carbon emissions and improving energy efficiency in properties, are part of the newly introduced Labour's Renters' Rights Bill, which sets a goal for private and social landlords to achieve a minimum EPC score of grade C or higher by 2030.
- As the government moves towards stricter EPC standards, businesses providing environmental-science services will play an increasingly significant role in helping landlords identify and implement cost-effective energy efficiency upgrades, ensuring compliance with new legislation and reducing their carbon footprint.
