The government’s consultation on raising the minimum EPC rating to C for privately rented properties has revealed that the deadline for new tenancies is set for 2028, not 2030, as previously assumed. However, all tenancies—both new and existing—will need to be compliant by 2030, making it crucial for landlords to start planning ahead.
To provide landlords with enough time to implement the necessary upgrades, the government has extended the timeline, aiming to ease the financial and logistical burden of these improvements. Despite this flexibility, the expectation is that landlords will not delay making changes, as waiting too long could lead to rushed and costly last-minute upgrades.
In addition to setting these deadlines, the government has also proposed enacting the new law in 2026, at which point the cost cap for improvements will be formally established. This means landlords will have two years to make necessary adjustments before new tenancies must comply.
To further clarify the financial implications, the government has announced a proposed cost cap of £15,000 per property for required improvements. This measure is designed to prevent landlords from facing excessive expenses while still ensuring that rental homes become more energy efficient.
The consultation document strongly encourages landlords to begin making upgrades well in advance of the 2028 deadline. The rationale is that early action could help spread costs over a longer period and allow landlords to take advantage of available funding schemes.
With the law expected to be formalised in 2026, landlords should stay informed on regulatory changes and available financial support. The government has hinted that funding opportunities, such as the Boiler Upgrade Scheme and the Warm Homes grant, could be useful in offsetting the costs of compliance.
Energy efficiency improvements could include measures such as loft and cavity wall insulation, double glazing, and smart energy systems. While these changes require investment, they can ultimately lower energy bills and improve property value, making them beneficial in the long term.
The new regulations are part of a broader effort to reduce carbon emissions and address fuel poverty, ensuring tenants live in warmer, more energy-efficient homes. The private rental sector has long been identified as lagging behind in energy efficiency, and this move is seen as a step towards closing that gap.
For landlords, failing to meet the new EPC requirements could result in penalties or restrictions on renting out non-compliant properties. As a result, it is essential to take the upcoming deadlines seriously and begin making necessary improvements sooner rather than later.
While some landlord groups have expressed concerns about the costs and feasibility of meeting the new standards, others acknowledge that improving energy efficiency is an inevitable and necessary step. The extended timeline provides some breathing room, but proactive planning will be key to avoiding last-minute issues.
The debate continues over whether the proposed £15,000 cap is sufficient to cover necessary upgrades, especially for older properties that may require more extensive work. Industry experts are urging landlords to conduct energy assessments now to understand their properties’ specific needs.
Ultimately, the goal of these regulations is to balance the need for improved energy efficiency with the financial realities faced by landlords. By spreading out the compliance timeline, the government aims to encourage a smoother transition rather than an abrupt and costly shift.
As the consultation process unfolds, further details on enforcement measures, funding opportunities, and potential adjustments to the cost cap may emerge. Landlords should keep an eye on government updates to stay informed on any changes.
The property sector will be watching closely as these plans develop, with some calling for more financial support and others warning of unintended consequences, such as rent increases or landlords exiting the market.
For now, the message is clear: landlords should begin preparing for these changes well before the 2028 deadline to avoid financial strain and ensure compliance with future regulations.
Implementation of EPC reform
The government has set out a proposed timeline for implementing EPC reforms and increasing the Minimum Energy Efficiency Standards (MEES) for privately rented properties. This timeline outlines key milestones landlords should be aware of to ensure compliance with the upcoming regulations.
In 2025, the government is expected to respond to several consultations, including the ‘Reforms to the Energy Performance of Buildings Regime’ and ‘Improving the Energy Performance of Privately Rented Homes in England and Wales.’ Additionally, a consultation on the proposed Home Energy Model (HEM) methodology will take place, which will introduce a new approach to calculating EPC metrics.
By 2026, the final HEM methodology will be published, setting the foundation for new EPC calculations. Preparations will be made to implement the new system, including the rollout of updated EPC software and training for energy assessors. At this stage, new EPCs reflecting the revised metrics will become available for landlords to commission, replacing the current format that displays the Energy Efficiency Rating (EER).
During this period, the government will confirm the exact standards that privately rented homes must meet under the new EPC system. Secondary legislation will be introduced to formally raise MEES in the private rental sector, ensuring that energy efficiency improvements are legally enforced. Updated guidance will also be provided to landlords, detailing the steps needed to comply with the new requirements.
From 2028, all new tenancies in the domestic Private Rented Sector (PRS) will be required to meet the higher EPC standard. This means that any property rented to a new tenant or where an existing tenancy is renewed or extended must comply with the updated efficiency criteria.
By 2030, the new EPC regulations will apply to all tenancies, ensuring that every rental property meets the required standard, regardless of whether the tenancy has been renewed. This deadline serves as a backstop, ensuring that no rental property is left non-compliant.
To clarify the government’s terminology, a ‘new tenancy’ is defined as a rental agreement where a domestic property is let to a new tenant or when a contract with an existing tenant is extended or renewed. In contrast, ‘all tenancies’ refers to rental agreements where the same tenant has remained in the property throughout, meaning properties under long-term tenancies will also need to meet the EPC requirements by 2030.
The government’s phased approach aims to provide landlords with sufficient time to upgrade their properties while ensuring that tenants benefit from improved energy efficiency. By gradually enforcing these standards, the government seeks to reduce carbon emissions, tackle fuel poverty, and make homes more cost-effective to heat.
Landlords should take proactive steps to understand how these changes will impact their properties. Investing in energy-efficient measures now, such as insulation, double glazing, and smart energy systems, could help spread costs over time and prevent last-minute compliance issues.
Failure to meet the required EPC standards by the respective deadlines may result in penalties or restrictions on letting non-compliant properties. Therefore, landlords must stay informed on regulatory changes and begin making improvements well before the deadlines.
The transition to stricter energy efficiency standards represents a significant shift in the rental market, but it also presents opportunities for landlords to enhance their properties’ long-term value and appeal. Well-insulated homes with efficient energy systems are likely to be more attractive to tenants and could command higher rental prices.
Additionally, financial support schemes, such as the Boiler Upgrade Scheme and Warm Homes grants, may be available to help landlords offset the costs of energy efficiency upgrades. The government has encouraged landlords to take advantage of these schemes to ease the financial burden of compliance.
As the 2026 implementation date approaches, landlords should stay updated on any refinements to the policy and ensure they understand their responsibilities. Consulting with energy assessors and industry professionals may help landlords navigate the changes effectively.
With clear deadlines now in place, landlords must act sooner rather than later to ensure their properties align with the upcoming EPC standards, avoiding last-minute pressure and potential legal consequences.
New EPC standards expected in 2026
The government is urging landlords to improve the energy efficiency of their rental properties ahead of the new Energy Performance Certificate (EPC) standards set to take effect in 2026. By acting early, landlords can ensure compliance and avoid last-minute costs or penalties.
To support these upgrades, government grants and financial assistance are available, subject to eligibility. Landlords are encouraged to take advantage of these schemes to help offset the cost of making their properties more energy efficient.
The government advises landlords to follow the recommendations outlined in existing EPC reports and work towards achieving an Energy Efficiency Rating (EER) of C. Meeting this standard will not only help landlords comply with future regulations but also contribute to tackling fuel poverty and supporting national energy efficiency goals.
For properties that already hold an EPC rating of C, the government has confirmed they will be considered compliant with future Minimum Energy Efficiency Standards (MEES) until the current EPC expires or is replaced. This provides some reassurance for landlords who have already invested in energy efficiency improvements.
However, after 2026, when a new EPC is required, properties will need to meet updated standards based on new measurement criteria. Landlords should start planning now to ensure they meet the revised requirements in time.
Proposed 2028 implementation timeline
The consultation states:
By proposing an implementation timeline of 2028 for new tenancies and 2030 for all tenancies, government would be providing additional time for landlords to plan for home improvements.
Government proposes that spend towards the cost cap would be counted from the date of secondary legislation being laid in 2026.
Early action would be encouraged prior to 2028 and following the updated regulations being laid, government would publish guidance to help landlords understand how to comply and what improvements would be counted towards the cost cap.
There is support currently available (subject to eligibility) for some of the least energy efficient homes through schemes including the Boiler Upgrade Scheme, the Great British Insulation Scheme, fuel poverty schemes such as the Energy Company Obligation, and, in Wales, the Warm Homes Nest scheme and Leasing Scheme Wales.
An eligibility tool is available on our ‘Help for Households’ GOV.UK page that will help people learn what support is available.
There is also a zero rate of VAT until March 2027 on energy saving measures, such as insulation, and low-carbon heating, making it cheaper for people to invest in their properties.
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