The Government is proposing that rental properties must reach EPC C by 2030. But making significant investments now could actually set your clients back...
The Government is proposing tighter energy efficiency regulations in the UK, requiring all privately rented properties to achieve a minimum Energy Performance Certificate (EPC) rating of C by 2030. Although these changes aim to improve housing quality and reduce carbon emissions, they’ve also raised significant concerns in the private rented sector (PRS).
According to Government figures, 52% of PRS properties are currently rated below C. Plus, there’s a growing concern among landlords that they’ll have to spend thousands of pounds to meet the new regulations.
But they shouldn't rush to make major upgrades just yet...
In this blog, we’ll tell you everything you need to know about the new EPC regulations and their implications for the rental market. We'll also tell you how you should advise your landlords to navigate the new legislation so they can ensure compliance and save money.
- What is an Energy Performance Certificate?
- What changes to EPC compliance is the Government proposing?
- The impact of new EPC regulations on the PRS
- How to help your landlords achieve higher EPC ratings
- What support is the Government offering to help landlords comply?
- Conclusion: Make EPC compliance easier with Goodlord
What is an Energy Performance Certificate?
An Energy Performance Certificate (EPC) is a document that evaluates the energy efficiency of a property. The certificate breaks down different aspects of the property, such as insulation, heating, windows, and lighting, and then rates the property from A to G, with A being the most energy-efficient.
The EPC bands are:
- EPC A = 92–100 SAP points
- EPC B = 81–91 SAP points
- EPC C = 69–80 SAP points
- EPC D = 55–68 SAP points
- EPC E = 39–54 SAP points
- EPC F = 21–38 SAP points
- EPC G = 1–20 SAP points
*SAP = Standard Assessment Procedure
The EPC certificate also suggests areas of improvement in the property, outlining their cost and telling you how much you could save on your yearly energy bills once the changes are made.
What changes to EPC compliance is the Government proposing?
Currently, the minimum required EPC rating is E for all private rental properties, but the Government plans to raise this standard to a minimum EPC rating of C by 2030. This move aims to lift more than a million renters out of fuel poverty, making sure that homes are more affordable to heat and maintain.
The initiative also aligns with the UK's broader commitment to achieving net zero carbon emissions by 2050. The Government hopes to reduce overall energy consumption and lower carbon emissions by making homes more energy-efficient.
Improving standards in the PRS is a welcome step as tenants deserve warmer and more energy efficient homes. However, there remains uncertainty around the exact timeline for the implementation of the new EPC regulations.
The impact of new EPC regulations on the PRS
The impact of the new EPC regulations is far-reaching, with concerns echoed across the industry. According to Goodlord’s State of the Lettings Industry report, 61.1% of landlords and 57.7% of letting agents agree that higher EPC standards will negatively affect the rental market.
The report also reveals that nearly one-fifth of landlords are unwilling to upgrade their properties. We further explore the impacts below 👇
Chris Norris, Director of Policy & Campaigns at the NRLA, explains the scale of the task to make all rented properties EPC compliant.
Implications for landlords
The financial burden of meeting the new EPC standards is substantial, with private rented dwellings needing an average of £6,864-worth of investment to comply, according to Government data.
However, there’s a clear gap between what’s needed and what landlords are willing to invest. Goodlord’s report reveals that most landlords are only willing to spend an average of £2,400 to meet the EPC band C requirement, far below what's required.
This mismatch raises serious questions. If landlords are unwilling or unable to invest in the necessary upgrades, those with more modest portfolios may leave the market. At a recent Goodlord event, Suzanne Smith, Founder of The Independent Landlord, said:
"Many smaller landlords want to do the right thing, but the pace of change is overwhelming. Without proper communication and realistic timelines, they’ll either struggle to comply or decide it’s just not worth it anymore."
The fact that landlords who don't meet the new EPC C requirement by 2030 could have to pay fines up to £30,000 or be banned from renting out their properties further emphasises the point.
Implications for agents
Letting agents are rightly concerned about stricter EPC regulations. If the increased compliance burden pushes landlords and properties that can't make the "C" grade out of the market, it’ll hurt your bottom line. You'll also face increased competition.
Another important consideration for letting agents is the increased risk of scams. Bad actors looking to exploit these regulatory changes could offer quick fixes to your landlords that have a negative impact on their chances of compliance.
Because of this, it's important that you can recommend well-researched, effective upgrades that actually move the needle, and provide any other support your clients need.
Implications for tenants
The new EPC regulations will improve property quality, but they may also lead to increased rents as landlords recover upgrade costs. While tenants prefer energy-efficient homes and may be willing to pay a premium for these benefits, the question remains:
Just how much more are they willing to pay?
For instance, upgrading a property to save £300 annually in energy bills might require upfront investments of £8,000. To recover the expenses, landlords could raise rents by around £70 per month. With Goodlord's data suggesting that more than half of tenants spend an average of 40% of their income on rent, this would further exacerbate the issue.
How to strategically help your landlords achieve higher EPC ratings
So far, we've covered the proposed changes and their potential impacts. Now, let’s see how you can help your clients take a calm and considered approach to improving their EPC ratings.
1 - Recommend that they conduct an EPC assessment
The first step to improving an EPC rating is to conduct a thorough assessment. A recent survey conducted by epIMS reveals that 95% of landlords are unaware of the EPC rating of their property.
Landlords need to understand their exact point score, not just the overall grade. This is because many properties may only be a few points off from higher ratings and may not require heavy investment.
Typically, this assessment takes around 30 to 40 minutes and provides a detailed report on the current energy efficiency of the property. It'll show what needs to be fixed and give a clear start for any needed improvements.
top tip
To get the most accurate assessment possible, advise your landlords to make all parts of the property accessible to assessors, including the roof and other hard-to-reach places.
Chris Norris outlines a range of low-risk property upgrades, but urges caution until the ratings system is clarified.
2 - Tell them to prioritise low-cost improvements (for now)
As changes to the EPC metrics rating system are being introduced in the latter half of 2026, landlords are best served focusing on small, incremental improvements until there's more clarity.
There are many affordable upgrades that can make a high impact on your ratings. For instance:
- Going from no roof insulation to having 270mm insulation can improve your rating by 10 to 15 points
- Installing wall cavity insulation, costing £350 - £500, can increase your EPC score by 5 to 10 points
- Adding hot water cylinder insulation can increase the rating by 1.5 to 2 points
- Switching to low-energy LEDs could increase the rating by 1 to 2 points
These low-cost changes can easily push landlords’ properties from one rating band to another without spending a lot. Plus, by spreading costs over a longer period of time, upgrades suddenly become more palatable.
Top tip
Ensure that your landlords always take photos of property improvements, as unrecorded upgrades may not be acknowledged later.
3 - Explore renewable energy sources
Incorporating renewable energy sources can improve EPC ratings while also reducing the property’s carbon footprint over time.
A 16-panel solar system, for example, can add an average of 10 points to the EPC score, while a large wind turbine can contribute 7 points.
While these upgrades may involve a larger initial investment, they can help future-proof the property and make a substantial difference in meeting EPC requirements.
What support is the Government offering to help landlords comply?
The Government plan includes a Warm Homes: Local Grant to help private landlords fund EPC upgrades. This grant will begin delivery in 2025 to English private landlords who have tenants on low incomes or properties rated EPC D to G.
Grants like this, along with other schemes such as the Energy Company Obligation (ECO) and the Great British Insulation Scheme, can significantly ease the financial burden of energy efficiency improvements.
Depending on the program, landlords may qualify for funding that covers up to £15,000. Eligible energy-saving improvements include:
- Solar PV panels - these generate free electricity for the property and allow landlords to sell excess electricity back to the National Grid via the Smart Export Guarantee, creating an additional income stream
- Air Source Heat Pumps (ASHPs) - these provide heating and hot water and are often paired with solar panels for a complete energy-efficient solution
- Electric storage heaters - it's suitable for smaller properties like flats where ASHP installation may not be feasible
- Insulation upgrades - this includes loft insulation, cavity wall insulation, and both internal and external solid wall insulation to reduce heat loss
However, to qualify for these grants, properties must meet specific conditions:
- Properties rated D, E, F, or G are eligible, while those already rated A, B, or C are not
- Grants are prioritised for properties using oil, LPG, coal, wood , or electric heating; homes with mains gas heating may only qualify for insulation upgrades
- The tenant must have a household income below £36,000 annually or have a long-term health condition, such as asthma or arthritis, verified by a GP
- Landlords need to confirm that any grant assistance will not exceed the cap of £315,000 over three years, as per the Minimum Financial Assistance threshold
- Landlords must agree not to raise rent, and they also have to partake in surveys or evaluations conducted by the Department for Energy Security and Net Zero
A limited amount of funding is available for local authorities, and only certain areas in England will receive funding for this grant. You need to find out which areas are eligible for funding and guide landlords to access this funding.
Conclusion: Make EPC compliance easier with Goodlord
With all the changes to EPC regulations, combined with the Renters’ Rights Bill, letting agents are facing an uphill battle to help their landlords comply. But Goodlord is here to help.
Our platform helps agents manage their landlords' EPC compliance by:
- Automating reminders - we notify you when EPC certificates are nearing expiration, so you can prompt your landlords to renew
- Making document management easier - we store all your EPC documentation in one place so you have a clear audit trail
Hit the banner below to learn more 👇
This article is intended as a guide only and does not constitute legal advice. Visit gov.uk for more information.
