EPC Regulations for Landlords 2025: What You Need to Know
All rental properties will be required to have a minimum EPC rating of a C by 2030. This proposal was reintroduced by Ed Miliband, Secretary of State for Energy Security and Net Zero at the labour conference in summer of 2024.
This overturned Rushi Sunak’s government decision in September 2023 not to increase the minimum energy efficiency standards from the current EPC rating of an E.
Ed Milliband stated that , raising the Minimum Energy Efficiency Standards for rented properties from an E rating to a C rating will provide “Decent standards for private rented homes, lifting families out of fuel poverty and decarbonise the country and aim for net zero by 2030”.
In this article, we outline current EPC regulations, how to get an EPC, penalties for non-compliance, and future changes. You’ll also find info on how to improve the EPC rating.
Takeaways
- It is a legal requirement for Landlords to obtain an Energy Performance Certificate (EPC) before renting or selling a property, with a minimum required rating of E; properties rated F or G cannot be rented without exemptions.
- Failure to comply with EPC regulations can result in significant financial penalties, including fines up to £5,000 for non-compliance.
- Upcoming changes in EPC regulations will raise the required minimum rating to C by 2030 for both domestic and commercial properties.
Understanding Energy Performance Certificates (EPCs)
An Energy Performance Certificate (EPC) offers information about a property’s energy efficiency. It measures estimated energy usage. The epc certificate will also suggest energy efficiency improvements that will lower the energy costs of the home.
EPCs are rated from A (most efficient) to G (least efficient).
Data from the past ten years, sourced from the Energy Performance Certificates for Building Register in England and Wales, illustrates the distribution of EPC ratings among all properties.
Current EPC Requirements for Landlords
Before marketing a rental property for sale or rent, landlords must obtain an EPC. This legal requirement ensures rental properties meet minimum energy efficiency standards and provides tenants with transparency.
The current required minimum energy efficiency rating is E. Properties rated below E cannot be rented unless a valid exemption is registered. Landlords with properties rated F or G must improve them to at least an E rating or obtain an exemption if necessary improvements are not feasible.
The minimum energy efficiency rating is due to rise to a C rating in 2030.
Landlords have to spend up to £3,500, including VAT, on necessary improvements to meet energy efficiency standards before an exemption can be applied for.
How to Obtain an EPC
Obtaining an EPC is straightforward. You can book an epc 24/7 online at https://energysmartworld.co.uk/book-epc-online/. A site visit is required to obtain all the data required to produce an EPC.
How To Get A C Rating Epc
The 4 main elements that will affect the ability to achieve a C rating are:
- The Fuel Source used to heat the property
- The heating system in the property
- The levels of insulation in the property
- Installing solar photovoltaics panels
If at least 2 of the items above are good, the property is likely to achieve a C rating.
The fuel source used to heat the property
The fuel source plays an important part in the EPC rating.
Cheaper fuel sources such as mains gas, oil, or using heat pumps will produce higher epc ratings compared to more expensive fuel sources such as peak rate electric, or LPG which will result in significantly poorer ratings.
The heating system in the property
If the property is heated by gas or oil, ensure the boiler is a condensing boiler.
Also ensure there is a room thermostat and thermostatic radiator valves so that the system can be controlled.
Avoid heating the home by peak rate electric. If electric is the only option then consider a heat pump, or high heat retention storage heaters.
Heat pumps, although powered by electric, are between 300 – 400% efficient, thereby reducing the amount of electricity used. However an air source heat pump is still likely to be more expensive to run than a gas boiler.
Ground source heat pumps running costs can be as cheap as main gas.
If using electric heating, ensure that the property is well insulated.
Avoid using panel electric heaters unless the property is well insulated or doesn’t have a lot of heat loss areas.
If insulation improvements are not possible, consider using High Heat Retention Storage Heaters.
These benefit from storing heat at night at the cheaper rate and releasing the heat during the day.
Don’t change old style storage heaters to panel heaters, this is one of the biggest mistakes made by landlords and will result in a significant decrease in the EPC rating due to the increased running cost.
If changing storage heaters, upgrade to High Heat Retentions Storage Heaters instead.
The levels of insulation in the property
Insulation plays an important role in the epc rating.
By having good insulation in the walls, floors and roofs mean the heating system will use less energy to heat the home and will result in a higher epc rating.
- Loft insulation should be brought up to a depth of 270mm.
- Cavity walls should be insulated if suitable.
- Solid walls should be insulated either internally or externally.
- Suspended ground floors should be insulated if possible.
- Consider solid floor insulation, if part of a major upgrade.
If at least 2 elements have adequate insulation, then there is a high likelyhood of a property getting to a C.
Installing Solar Photovoltaics (PV)
Solar panels can significantly boost EPC (Energy Performance Certificate) ratings by improving a property’s energy efficiency.
By generating renewable electricity, they reduce the need for grid power, lower energy consumption, and decrease carbon emissions, which directly contributes to a higher EPC score.
This can make a property more environmentally friendly and cost-effective to run.
For example installing a 4 kw system can easily take an E rated property to a C rating.
In many cases, simply installing solar pv can have the single biggest impact on the EPC rating.
Solar PV in many cases can produce more savings on the EPC than all the other recommendations added together.
Exemptions from EPC Requirements
Landlords can be exempt from EPC requirements under certain conditions, such as financial constraints, lender consent issues, or structural challenges making improvements unfeasible. If upgrade costs exceed £3,500, landlords may qualify for a high cost exemption.
Landlords must provide evidence and register on the PRS Exemptions Register to obtain an exemption. This involves submitting detailed documentation, like reports from qualified surveyors or evidence of high improvement costs.
Exemptions usually last for five years, after which re-assessment is required. Keeping track of these ensures landlords remain compliant with current regulations while addressing practical challenges of meeting energy efficiency standards.
Our Views On The New EPC Ratings of C in 2030
Our company Energy Smart has been providing domestic and commercial EPCs since 2014.
We believe that raising the minimum energy efficiency standard from an E to C is a good goal but will be more difficult and costly than expected, especially in older property built before 1930’s built with solid walls.
Previous grant schemes over the last 20 years have already identified the easy to upgrade properties that simply needed loft insulation or cavity wall insulation.
This now leaves the older pre 1930’s solid walled properties that will need significantly higher costs investments. Our estimates are that these types of properties will need between £9,000 – £11,000 of improvements to get to a C rating.
Private landlords are unlikely to want to invest those kinds of sums out of their own pockets.
The question then becomes is there going to be enough public funds to upgrade those properties and if so should it be going ultimately to benefit private landlords.
Our experience of previous grants schemes is that they always come to a dead end. Either they are not very successful because they are cumbersome to access funding resulting in low or poor take up, remember the Green Deal Scheme. The lack of the scheme success ultimately closes it down.
Alternatively, the scheme has a high take up and then there is simply not the funds from the public purse to cover the high demand. Remember successful schemes such as the Renewable Heat Incentive (RHI) for solar panels, or the Green Deal Vouchers for solid wall insulation where demand exceeded the funding. The successful take up of the scheme also quickly saw it come to an end, as no scheme can have a bottomless purse. Then government departments look at reasons to close it down.
This means many contractors are unwilling to commit to stop start government funded schemes.
Ourselves being a previous Green Deal Advise Organisation was hit by the sudden end of Green Deal, this ultimately led us to be an EPC company that we are now.
Our advise to landlords regarding the EPC rating of a C is exactly as it was under the previous government. It is to hold tight until it’s actually in legislation, as at the moment it is only a proposal to get to a C by 2030.
By 2030, the current government may not even be in office, or may come to a similar decision as the previous government that a C rating may be more difficult and costly than anticipated.
A minimum EPC rating of a D is a more realistic target than most properties could achieve and is a decent balance between over regulation on private landlords and providing tenants with reasonable energy efficient properties.
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