How changing EPC regulations affect landlords and tenants

An energy performance certificate (EPC) provides a detailed picture of a property’s energy efficiency and carbon dioxide (CO2) emissions.

As a landlord, you must ensure your property has a valid EPC and meets the minimum energy efficiency standards. 

Here we look at EPCs in detail, the latest changes and what the future holds for landlords and tenants.

What are the EPC requirements? 

So how do you go about getting your EPC? First, you must get an EPC survey conducted by a domestic energy assessor.

It will usually take around an hour and cost between £60 and £120, including VAT. 

Essentially, the assessor looks at the interior and exterior of your property to determine how energy efficient it is and also to see how and where efficiency can be improved. 

These are some of the areas they assess: 

• Windows

• Roofs, walls and insulation 

• Boilers and heating systems 

• Renewable energy devices such as solar panels

• Lighting 

• Fireplaces 

• Building dimensions and age 

Once the inspection is complete, your assessor will create an EPC and grade your property’s energy performance.

A is the best possible score, and G is the poorest. Currently, your property must achieve a valid EPC rating of E or above, or it cannot be legally let. 

However, landlords will never be required to spend more than £3,500 on improvements to the energy efficiency of a property.

What have been the latest EPC proposals? 

The minimum energy efficiency standards (MEES) have been in place since 2018, requiring a minimum EPC rating of 'E' for all new and existing tenancies.

The government had previously announced ambitious plans to raise this minimum standard to a 'C' rating for all new tenancies from 2025, and for all existing tenancies by 2028.

The penalty for non-compliance was also set to increase from £5,000 to £30,000.

However, in September 2023, these specific proposals were scrapped by the government to ease the financial pressure on landlords.

Following this, new long-term proposals have been put forward.

The government's new ambition is for all rental properties to reach a minimum EPC rating of 'C' by 2030.

Alongside this new target, a cost cap has been proposed, meaning landlords would not be expected to spend more than £10,000 on making improvements.

How long does an EPC last? 

An EPC is valid for 10 years, although when it runs out, you only need to get a new one if you’re setting up a new tenancy agreement or selling your property.

Currently, there is no automatic requirement for a new EPC to be commissioned. 

What about tenants’ rights?  

As a landlord, you must give tenants at least 24 hours written notice of a visit from an assessor.

Most tenants will be happy about an energy performance assessment as it’s a legal requirement, and a property with a good energy performance rating will be more cost-efficient and comfortable to live in. 

Are tenants entitled to a copy of the EPC? 

An EPC is not just about meeting guidelines — it’s fundamentally about quality of life and sustainability.

These concerns are naturally important to tenants too. As a tenant, you are entitled to a copy of your home’s EPC and must be provided with one when you move in.

If you want to find your property’s EPC rating, simply go to the government’s Energy Performance of Buildings Register, type in your postcode and click on your address. 

What are the likely costs, and are improvements tax deductible? 

It’s difficult to put a precise figure on the cost of bringing your property up to the required rating if there is work to be done.

According to Property118, it could cost £2,500 - £4,000 to bring a reasonably maintained property rated D up to C.

Unfortunately, improvements on property intended to boost your EPC rating are classed as capital expenditure and not repairs and maintenance.

So, this means they cannot be written off against profits to reduce your tax bill. 

Would the scrapped rules have impacted the rental market? 

Some private sector landlords may have been put off by the increasing level of investment required to gain a valid EPC before the proposals were scrapped by the government.

The situation may not have been helped by the relative confusion surrounding financial support.

Some energy grants may be available from the government or certain energy suppliers, which are worth exploring.

The abandoned proposals could have resulted in more landlords exiting the rental market, less choice for tenants and higher rental prices.

That said, rental prices have risen rapidly over the last few years.

Are there any EPC exemptions? 

It’s possible that your property is exempt from the MEES and EPC requirements.

Here’s a list of the main exemptions: 

• Listed or protected buildings that would be compromised by improvements.

• Temporary buildings that will be used for up to two years.

• Some workshops and industrial sites.

• Places of worship.

• Detached buildings with floor space of 50 metres or less

• Buildings that are due to be demolished 

Period properties can be more difficult and expensive to retrofit and bring up to the required standard, which has been acknowledged.

What should you do now?  

While the 2025/2028 deadlines were abandoned, the direction of travel is clear. New government proposals for a minimum 'C' rating by 2030 have been put forward. Landlords should not be complacent.

It is wise to start planning for these future requirements now.

Review the EPCs for your properties, especially if they are currently rated D or E.

Getting a new assessment can give you a clear, up-to-date picture and a list of recommended improvements.

This will allow you to budget and plan for any necessary works well ahead of the proposed 2030 deadline.

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