New EPC regulations for landlords

The rules around energy performance certificates (EPCs) are changing, and from 1st October 2030, all private rented homes in England and Wales must meet EPC category ‘C’ standards. Landlords that don’t comply will face fines of up to £30,000. Here, we look at the changes and timelines you’ll need to meet.

Updated: 05.08.26

By Steve Cox

This content was factually correct when written but may not reflect current developments or information.

What is an energy performance certificate (EPC)?

An EPC grades a property based on its energy efficiency. Homes rated A are the most efficient, while homes rated G are the least efficient. Certificates are valid for ten years. If you make any energy efficiency changes – for example, adding insulation or installing double glazing - you can arrange to have your EPC updated to reflect those improvements.

Unsurprisingly, new homes tend to be more energy efficient, meaning they cost less to run than equivalent older buildings. The average rating for homes in the UK is D.

EPCs were introduced in phases, and by 2008 all domestic properties needed an EPC when they were built, sold, or rented. If you’re marketing your property for sale or to let, it must include an EPC, and landlords must provide tenants with a copy of the EPC.

What are the current EPC rules?

Currently, privately rented homes in England and Wales must have an EPC rating of E or above. If you’re already renting out a property with an EPC rating of F or G (or want to rent one out), you must either improve its rating or register an exemption (if applicable). If you breach any of the EPC rules, you can be fined up to £5,000. 

How much do I have to spend on EPC improvements currently?

At the moment, the most you are expected to spend on making your property energy efficient is £3,500 (including VAT). If you make improvements up to this value and your property still doesn’t meet the minimum E rating, you can apply for an exemption.

When is an EPC not required?

You don’t need an EPC for: 

Temporary buildings used for less than two years.

Stand-alone buildings with less than 50 square metres total (useful) floor space.

Industrial sites (including workshops).

Some buildings due to be demolished.

Holiday accommodation rented for less than four months a year (or is under a licence to occupy).

Residential buildings used for less than four months per year.

Places of worship.

Current EPC exemptions

Not all buildings can be brought up to meet minimum standards and current exemptions include:

All relevant improvements made – if you’ve made improvements up to the value of the current limit (£3,500) and your property still doesn’t meet the minimum EPC E rating, you can apply for an exemption under this clause. This exemption is valid for five years.

High-cost exemption – if the cheapest improvement exceeds the £3,500 limit, then you can apply for an exemption. Registering a high-cost exemption requires you to provide three quotes from qualified installers demonstrating that energy-efficiency measures will exceed the limit (including VAT). This exemption is valid for five years.

Wall insulation exemption – if the only suitable improvements are cavity wall, external wall, or internal wall insulation and those updates would negatively affect the structure or fabric of the property, you can apply for an exemption. You’ll need to provide written evidence from an expert confirming this. This exemption is valid for five years.

Third-party consent exemption – if you need consent to make changes to the property (for example, another landlord, freeholder, or tenant) but cannot get it, you can use this reason to register an exemption. This reason can also be used if consent is given, but it comes with conditions you cannot reasonably meet. You’ll need to provide evidence (such as correspondence) to support this. This exemption is valid for five years.

Property devaluation exemption – you can use this reason if you can show that improvements would devalue the property by more than 5%. You’ll need a report from an independent surveyor listed on the Royal Institute of Chartered Surveyors (RICS) register of valuers. This exemption is valid for five years.

Temporary exemption due to recently becoming a landlord – if you’ve suddenly become a landlord, you can apply for a six-month exemption using this reason. However, you can only apply for this if you’ve become a landlord under certain circumstances, which can be found in the government’s official guidance document.

What are the new EPC rules from 2030?

From 1st October 2030, all private rented homes in England and Wales must have a minimum EPC rating of C. Previous staggered timelines have been dropped, and the new date applies to new and existing tenancies.

In addition to raising the minimum standard from E to C, the way energy efficiency is measured will also change. Currently, EPCs use the SAP (Standard Assessment Procedure) model, which measures how much energy a building uses and requires to remain habitable.

The new method is called the Home Energy Model (HEM). It’s considered to be more accurate in reflecting real-life energy usage and costs, and measures four categories of energy efficiency:

Fabric performance – how well the building retains heat.
Heating system – how efficient the heating system is and how much carbon it uses.
Smart readiness – how prepared the property is for new technology or methods of controlling energy (such as solar panels, smart meters, or smart controls).
Energy cost – estimated costs for running the property.

EPCs will start using the new HEM measures at some point in 2027, alongside the current SAP method as it’s gradually phased out. By 1st October 2029, the new HEM system of measures should be fully in force. Properties with an EPC C rating issued on or before 1st October 2029 using the old system will remain valid until their current EPC expires.

New cost cap on improvements

From 1st October 2030, landlords will be expected to spend up to £10,000 bringing rental properties up to a C rating; however:

Any money you’ve spent since 1st October 2025 making relevant energy efficiency improvements will count towards the £10,000 limit.
Properties valued below £100,000 will have a lower cap, and you’ll only be expected to spend up to 10% of the property’s value making it energy efficient (known as the ‘property value adjustment’).

What exemptions will there be under the new EPC system?

Previous exemptions will remain largely unchanged. New exemptions include the property value adjustment being added, and the introduction of the ‘solid wall insulation’ exemption. This is similar to the current wall insulation exemption and means you don’t have to install certain insulation if it is likely to cause damage (such as damp).

Will short-term lets need an EPC under the new rules?

No, short-term lets (like holiday homes) are exempt from the new 2030 rules. However, the government has said it may review this in the future.

Are listed buildings exempt from needing an EPC?

No, listed buildings and those in conservation areas are not automatically exempt from the need to have an EPC. You must still obtain an EPC certificate for the building, but it may be exempt from the minimum energy efficiency standards.

If you own a listed building (or a property within a conservation area) and want to rent it out, you should still try to make energy-efficiency improvements to the maximum value (currently £3,500, rising to £10,000 from 2030). If you cannot make improvements, you’ll need to apply for an exemption using one of the exemption clauses in force.

New EPC rules key dates for landlords

1st October 2025 – money spent on relevant energy efficiency measures can go towards the £10,000 cost cap.

Late 2027 – new HEM measures will start to be used for EPCs.

1st October 2029 – EPC C ratings assessed under the older SAP model on or before this date will remain valid until expiry.

1st October 2030 – all tenancies must meet new minimum EPC C standards under the new HEM assessment framework, unless there is an exemption or their EPC is still valid under the 1 October 2029 clause. Local authorities will also start enforcing the new rules.

How to improve an EPC rating

There are several steps you can take to improve your EPC rating to meet regulations, including:

Switch to energy-efficient bulbs – this is one of the quickest and cheapest ways to cut energy costs.
Draught-proof windows and doors – this can easily be done by sealing joints and adding draught excluder tape to preserve heat.
Add or increase insulation – another relatively cost-effective way to increase EPC ratings is to top up or install loft insulation. It's recommended that loft insulation is at least 270mm thick.
Invest in double or triple glazing – if your property doesn’t already have double glazing, it’s unlikely to meet EPC targets.
Install a more efficient boiler - your central heating system plays a huge part in your EPC rating, so upgrading to an A-rated boiler can make a big difference.

Helping you navigate landlord responsibilities

Landlords have a long list of responsibilities, and with frequent regulatory changes, navigating those obligations can be tough. To help you stay up to date, we’ve put together news, advice and guides in our landlord information hub.

We can also help protect your property investment with our award-winning landlord insurance. In addition to landlords’ liability cover, we can tailor a package of protection that includes legal & rent guarantee insurance, legal expenses, and malicious damage cover. To find out more, speak to our team on 01603 216399.

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New EPC regulations for landlords

In this article

In this article

What is an energy performance certificate (EPC)?

What are the current EPC rules?