The Government has announced plans to introduce fines of up to £30,000 for landlords who fail to meet energy efficiency standards. It has also confirmed that privately rented properties will need to achieve an Energy Performance Certificate (EPC) rating of C by 1 October 2030.
The proposed changes are part of the Energy Independence Bill, which aims to give local councils greater powers to take action against landlords who do not meet the required standards.
Lower energy bills for tenants
The Government estimates that bringing all privately rented homes up to an EPC C rating could help tenants save around £210 a year on their energy bills by 2030.
To support this target, local authorities will be given stronger enforcement powers to ensure landlords make the necessary improvements to properties that fall below the required standard.
The maximum civil penalty for breaching the regulations is set to rise to £30,000. The maximum amount landlords may be required to spend on improvements will also increase to £10,000 per property.
However, there is still some uncertainty over how the £30,000 penalty will be applied. It has not yet been confirmed whether this will be the maximum fine for a breach overall or whether landlords could face a separate penalty of up to £30,000 for each property and each breach.
In January 2026, the Government proposed allowing councils to issue fines of up to £30,000 per property, per breach. Further details are expected as the bill progresses through Parliament.
Stronger action to improve compliance
The Government’s guidance on Minimum Energy Efficiency Standards enforcement explains that the increased penalty is intended to encourage landlords to meet their legal responsibilities and improve the condition of privately rented homes.
The plans are designed to give councils the tools needed to deal with properties that fail to meet energy efficiency requirements. The wider aim is to provide tenants with warmer homes that cost less to heat, while reducing fuel poverty and protecting vulnerable households from living in cold, poorly insulated properties.
Improving the energy efficiency of rental homes is also expected to support the UK’s energy security by reducing reliance on imported energy for heating.
Under the proposed measures, landlords who breach the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 could face a maximum civil penalty of £30,000.
The full details of how the penalties will work, including whether they can be applied separately to each property and breach, will need to be confirmed as the legislation moves through Parliament.
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