The UK Government is tightening EPC (Energy Performance Certificate) regulations for rental properties, requiring a minimum EPC rating of C by 2030. While these changes aim to reduce carbon emissions and improve housing standards, landlords who rush into costly upgrades may regret it.
In this article, we’ll break down everything you need to know about the new EPC requirements and how landlords can navigate them cost-effectively.
What You’ll Learn:
- What is an Energy Performance Certificate?
- What are the EPC regulation changes in 2025?
- Will the EPC calculation method change?
- How will new EPC rules impact landlords and letting agents?
- Low-cost improvements to boost EPC ratings
- Available government support for landlords
- Conclusion: How to simplify EPC compliance for landlords.
Navigating the New EPC Regulations: Key Changes and Cost-Effective Solutions
The UK Government is tightening EPC regulations for rental properties, requiring a minimum rating of C by 2030. This video provides a comprehensive overview of the upcoming changes and actionable advice for landlords. Learn how to avoid costly mistakes, prioritize effective upgrades, and access available government support. Watch now for a step-by-step guide to EPC compliance.
What is an Energy Performance Certificate?
An EPC is a document that assesses a property’s energy efficiency, rating it from A (the most efficient) to G (the least efficient). The assessment evaluates key features like insulation, heating systems and windows, and provides recommendations for improving the property’s energy performance. Follow this link to find out more about our EPC services.
Each EPC includes improvement suggestions, along with cost estimates and potential savings on annual energy bills.
What Are the New EPC Regulations in 2025?
By 2030, the minimum EPC rating for rental properties will be C – currently all such private properties require a minimum rating of E. The timeline is:
- 2028: New tenancies must have a minimum EPC rating of C.
- 2030: All tenancies must comply.
The government’s goal is to reduce fuel poverty and help achieve net-zero carbon emissions by 2050. While the exact timeline is not finalised, the February 2025 consultation outlined plans to prioritise improving a property’s fabric performance (e.g. insulation and building structure).
Will the EPC Calculation Method Change?
Yes, the government plans to replace the SAP (Standard Assessment Procedure) with the Home Energy Model (HEM). This transition will require careful preparation, as HEM will be fully implemented with the Future Homes Standard in 2025.
Initially, the Future Homes Standard will apply to new buildings, introducing stricter energy efficiency requirements such as enhanced ventilation and improved thermal performance. Over time, HEM will also be used for generating Energy Performance Certificates (EPCs) for existing properties, ensuring consistent and thorough energy assessments across the housing sector.
Until the new EPC metrics are confirmed, EPC compliance for landlords may prove challenging if all property upgrades are to achieve a C rating.
How Will These Changes Impact the Private Rental Sector?
1. For Landlords
The average EPC upgrade costs when it comes to achieving the C standard is £6,864 per property, according to government data. However, many landlords are only willing to spend around £2,400—far below what’s needed. Smaller landlords with limited portfolios could struggle to comply without financial support. Failure to meet the new standards could result in fines of up to £30,000 or a ban on renting out properties.
Smaller landlords with limited portfolios could struggle to comply without financial support. Failure to meet the new standards could result in fines of up to £30,000 or a ban on renting out properties.
2. For Letting Agents
Stricter regulations could shrink the rental market, especially for properties that can’t meet the EPC C requirement. This may reduce agent revenues while increasing competition for compliant properties.
Agents must offer reliable advice on cost-effective upgrades and avoid recommending quick fixes that don’t guarantee EPC compliance for landlords.
3. For Tenants
Energy-efficient homes will reduce utility bills, but the cost of upgrades may push rents higher. While tenants prefer energy-saving features, affordability is key. The question remains: How much extra are tenants willing to pay for energy efficiency?
How Can Landlords Improve EPC Ratings?
Adopting a measured approach can prevent unnecessary expenses while ensuring compliance.
1. Start with a Detailed EPC Assessment
Most landlords don’t know their exact EPC score. A detailed assessment reveals whether a property is just a few points away from a higher rating, often requiring only minor improvements.
Tip: Ensure assessors have access to all parts of the property, including lofts and hard-to-reach areas, for an accurate evaluation.
2. Focus on Low-Cost Improvements
Until the new EPC metrics are fully clarified, landlords should prioritise affordable, high-impact upgrades. These include:
- Roof insulation
- Wall cavity insulation
- Energy-efficient LED lighting
These small changes can push properties into higher EPC bands without significant upfront investment.
Tip: Landlords should take photos of improvements and ask their contractor to sign a letter as proof for future EPC assessments.
3. Consider Renewable Energy Upgrades
Renewable energy installations, such as solar panels and wind turbines, can significantly improve EPC scores while reducing a property’s carbon footprint:
- Solar panels
- Wind turbine
Although these upgrades require a larger initial investment, they can future-proof properties and help meet EPC requirements.
Government Support for EPC Compliance
The government plans to offer financial incentives and grants to help landlords meet the new EPC regulations in 2025. Stay informed about available funding to reduce out-of-pocket expenses.
Simplify EPC Compliance with Expert Help
With new EPC regulations in 2025 looming, landlords must adopt a strategic approach to upgrades. Committing yourself to rushed and expensive EPC upgrade costs without understanding the full impact could lead to unnecessary expenses.
Assessment Hive’s energy audit service provides landlords with expert advice and practical solutions to improve their EPC ratings cost-effectively. Contact us today to learn how we can help.
