A couple of weeks ago, we hosted our Renters’ Rights Act webinar for over 500 landlords, with a live Q&A designed to answer the questions landlords were most concerned about ahead of the changes.
\nOne topic came up more than expected: EPCs.
\nWith further legislation expected over the next few years, it is clear many landlords are trying to understand where they stand now, what may be coming next, and what they should be doing to prepare.
\nAn Energy Performance Certificate, or EPC, measures the energy efficiency of a property.
\nA common misconception is that an EPC is simply a measure of how environmentally friendly a home is. In reality, it is more closely linked to how efficient the property is to run, including the likely cost of heating, lighting and hot water for the person living there.
\nThat is why EPCs can sometimes feel counterintuitive. For example, electricity may be seen as a cleaner energy source, but because it is usually more expensive than gas, replacing a gas boiler with an electric boiler can sometimes reduce a property’s EPC rating.
\nIn simple terms, an EPC is not just about being greener. It is about running costs, efficiency and how the property performs for the resident.
\nAt the moment, private rental properties must have a minimum EPC rating of E, unless a valid exemption applies.
\nThis can be particularly relevant for some listed buildings or properties where the required improvements are not possible, practical or cost effective. In those cases, landlords may need to register an exemption rather than simply proceed without action.
\nFor a property to be let, landlords also need a valid, in-date EPC, and the rating should be displayed on the property advert.
\nFor sales, there is currently no minimum EPC rating required in order to sell. However, a valid EPC is still needed when marketing a property for sale, and it should also be shown on the property listing.
\nThere has been a lot of back and forth around EPC legislation over the last few years.
\nPrevious plans to require rental properties to reach a C rating were dropped in 2023, but the direction of travel has now shifted again. The Government has confirmed its intention to raise minimum energy efficiency standards for privately rented homes by 2030.
\nThe current expectation is that private rented homes will need to meet the new standard by 1 October 2030, with updated regulations expected before then.
\nThe EPC itself is also changing. Rather than relying on one overall rating, the new version is expected to include several separate measures, looking at areas such as:
\nThat means future EPCs may give landlords and tenants a more detailed picture of how a property performs, rather than relying on one headline score.
\nFor now, you can still let a property with a minimum EPC rating of E, provided there is no other issue and the EPC is valid.
\nBut 2030 is no longer far away in property terms, especially if your rental needs bigger works such as insulation, glazing or heating upgrades.
\nIf you have made improvements to your property since your last EPC, such as changing the heating system, upgrading windows or adding insulation, it may be worth getting a new EPC to understand where the property now sits.
\nIf your rental is currently below a C rating, the sensible approach is to start planning early.
\nSome improvements can be relatively low cost, such as switching to LED lighting, insulating a hot water cylinder, adding heating controls or improving draught proofing. These may not transform the rating on their own, but they can help move the property in the right direction.
\nLarger improvements, such as double glazing, insulation or boiler replacement, can have a much bigger impact, but they also come with more cost and planning.
\nThe risk of waiting until the deadline is closer is that demand for contractors and materials may rise, which could make works more expensive and harder to arrange. A planned approach now gives landlords more control, both financially and practically.
\nThere is also a wider point here. More energy efficient rental homes are usually cheaper for tenants to run, which can make them more attractive in a competitive rental market. Rightmove has also reported a value uplift for homes that improve their EPC rating, with properties moving from D to C seeing an average increase of 3%, E to C seeing 7%, and F to C seeing 15%.
\nSo while EPC improvements can feel like another cost for landlords, they should also be viewed as a long-term investment in the property.
\nAs always, our lettings team at David Astburys are here to help landlords understand what this means in practice. If you would like to discuss your rental property and start putting a plan in place ahead of the upcoming EPC changes, click here to get in touch.
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