Landlords: What You Need to Know About the Proposed EPC Changes

Published on February 28, 2025 by Sarah Mac

The government is considering major changes to energy efficiency rules for rental properties, and landlords need to be aware of what is being proposed.

Under the new consultation on EPC rules, which is currently open for feedback, privately rented homes may need to meet a higher energy efficiency standard by 2030. While these changes are not yet law, they could affect every landlord in the coming years.

In this article, we break down what is being proposed, when changes could come into effect, and what landlords can do now to prepare.

What are the proposed EPC rule changes?

At present, rental properties must have an EPC rating of at least E. However, the government is consulting on raising this minimum standard, with the following key proposals:

Second half of 2026: Introduction of a new EPC system, which will focus on fabric performance (insulation), heating system efficiency, and smart readiness, rather than just running costs.

From 2028: All new tenancies would need to comply with a higher energy efficiency standard. Landlords would only be able to sign a new tenancy agreement if the property meets the new requirements (unless a valid exemption applies).

By 2030: The higher standard would apply to all rental properties, regardless of when the tenancy started. Landlords would not be able to continue letting a property unless it meets the new standard or qualifies for an exemption.

These are not finalised rules, but if introduced, they would significantly raise the energy efficiency requirements for rental properties.

How could the new EPC rules affect landlords?

1. Higher upgrade costs

Many landlords will need to make improvements to reach an EPC rating of C under the proposed system.

A recent study found that 50% of landlords expect they would need to make changes to comply
Government figures show that 52% of PRS properties are currently rated below C
More than one in 10 believe upgrades could cost over £10,000 per property
The average estimated cost is £6,800 per property

The government has suggested a spending cap, meaning landlords may not be required to spend unlimited amounts on improvements. However, the final cap amount has not yet been decided. If it’s less than £10,000, it could result in landlords spending the maximum on improvements without actually reaching the minimum EPC rating.

2. Possible financial penalties

If these changes do become law, landlords who do not meet the new standards may face:

Fines of up to £30,000 (based on previous proposals)
Restrictions on letting properties that do not meet the energy efficiency requirements

However, these penalties are not confirmed and will depend on the outcome of the consultation.

What should landlords do now?

Although these rules are not yet in place, landlords should not ignore them. The consultation period gives landlords a chance to provide feedback, but preparing early can help spread costs and avoid last-minute stress.

1. Check your property’s EPC rating

Before making any changes, find out where your property currently stands.

EPC C or higher? No action may be needed
EPC D? Small improvements may be enough to meet future requirements
EPC E or below? A plan for more significant upgrades may be necessary

2. Consider small, low-cost improvements first

Rather than making expensive upgrades all at once, landlords can start with simple, cost-effective improvements that may boost their EPC rating:

Improvement	Average Cost	Potential EPC Impact
Roof insulation upgrade (270mm)	£400-£500	+10-15 points
Cavity wall insulation	£350-£500	+5-10 points
Hot water cylinder insulation	£20-£30	+1.5-2 points
Switching to LED lighting	£50-£100	+1-2 points
Draught-proofing windows & doors	£100-£200	+2-5 points

These upgrades may be enough to improve an EPC score without major renovations.

3. Keep an eye on government support

If the proposed changes go ahead, funding may be available to help landlords cover improvement costs. Some current and future schemes include:

Warm Homes: Local Grant (2025) – Could provide funding for landlords with low-income tenants
Energy Company Obligation (ECO) – Helps cover the cost of insulation and heating upgrades
Great British Insulation Scheme – Aims to provide financial support for landlords improving home insulation

4. Engage with the consultation process

The government is actively seeking feedback from landlords before finalising the EPC changes.

Have your say: The consultation is open for responses here.

By submitting feedback, landlords can help shape the final version of the rules, including realistic timelines and spending limits.

How higher EPC ratings could benefit landlords

Improving energy efficiency is not just about compliance. It could also increase tenant demand and rental income.

A tenant in an EPC C property could save £499 per year on energy bills compared to EPC D, according to research by Hamptons.
Also according to Hamptons, compared to EPC E, savings could reach £1,248 per year.
Energy-efficient homes are more attractive to tenants, meaning fewer void periods.

Even if the rules change during consultation, improving your EPC rating could still be a smart investment for the future.

Final thoughts: Stay informed, stay prepared

The proposed EPC rule changes are still under consultation, but landlords should stay ahead by:

Checking their EPC rating now to understand their position
Making small improvements to spread costs over time
Monitoring government support for financial assistance
Responding to the consultation to ensure landlord concerns are heard

Need help keeping track of your property’s condition? Regular property inspections can identify energy efficiency issues early, helping you plan improvements well before any new rules come into force.

For advice on keeping your rental properties compliant and up to date, contact SRP Inventories today.