EPC and landlords 2026: The new rules, costs and what you need to do
Energy Performance Certificates (EPCs) are essential for landlords in the UK. They show how energy-efficient a rental property is - and new government plans mean landlords will soon need a minimum EPC rating of C. In this guide, we explain what the EPC changes mean for landlords, how much upgrades could cost, and how to prepare.
Post updated: January 22nd, 2026
KEY INFORMATION
EPC and landlords – At a glance
Quick summary: Landlords must ensure their rental properties meet a minimum EPC rating of C by October 2030 in England and Wales, the government has confirmed. The average cost of these upgrades is estimated by the government to be £6,100-£6,800, with a £10,000 cost cap.
Requirement
Current rule
New rules (2030)
Min EPC rating for landlords
E (unless valid exemption)
C (unless valid exemption)
Cost cap
£3,500
£10,000 (lower if £10,000 is 10%+ of property value)
Applies to
All private rented homes
All private rented homes from October 2030
What is an EPC and why does it matter to landlords?
An EPC – or Energy Performance Certificate – ranks properties in terms of energy efficiency from A (most efficient) to G (least efficient). You need an EPC when you’re selling a house or renting out a property.
For landlords, there’s an extra requirement: your property will need to have a minimum EPC rating for you to legally let it out (unless you have a valid exemption).
However, there is a cost cap: landlords aren’t required to spend more than £3,500 on energy efficiency improvements.
EPC changes for landlords: the new 2030 minimum C rating
Under new plans announced by the government, properties let out by private landlords in England and Wales will need a minimum Energy Performance Certificate Rating of C by October 2030.
There is a maximum cost cap on what landlords need to pay of £10,000 per property, under the government’s plans. This is a reduction from the £15,000 initially proposed.
Any spending on energy efficiency measures since October 2025 can be included within this cap.
If the property does not meet the standard after £10,000 has been invested, the government says the “landlord may register the property for an exemption valid for 10 years and continue to let the property during this time”.
However, it adds: “Once the exemption expires, the landlord must again invest in energy efficiency improvements to bring the property up to standard. £10,000 is the maximum landlords will be required to invest over a 10-year period.”
The cost cap will be lower for properties for which £10,000 represents 10% or more of the property’s value.
The government says there will be support available from the Boiler Upgrade Scheme and the Warm Homes: Local Grant.
EPC exemptions
The government has listed the future exemptions for increased domestic standards will be the:
‘High-cost’ exemption: If the cost of making even the cheapest recommended improvement on the EPC would exceed the cost cap (inc. VAT).
‘All relevant improvements made’ exemption: No further recommendations on EPC or from an approved report showing no further improvements possible, and the property remains below the standard.
‘Cost cap’ exemption: When a landlord has spent up to or over the cost cap of £10,000, or the next cheapest improvement will take the total spent on improvements, that have not previously been used for an exemption, over the cost cap of £10,000.
‘Property value adjustment’ exemption (affordability exemption): Where the cost cap is £10,000 or 10% of the value of the house, whichever is lower.
‘Solid wall insulation’ exemption: Where a landlord could choose not to install solid wall insulation (SWI) and record that decision through this exemption.
‘Negative impacts’ exemption: This will combine two existing exemptions, the Devaluation exemption and the Wall insulation exemption, and will also allow landlords to register evidence that a specific measure would negatively impact their property.
‘Third-party consent’ exemption: Consent from a relevant third-party, e.g., tenant, superior landlord, planning authority, is not granted.
‘New landlord’ exemption: Temporary six-month exemption due to recently becoming a landlord of a tenanted property.
How many landlords will be affected?
These plans are likely to have a widespread impact on landlords if they go ahead; around 2.9 million privately rented homes are thought to have energy efficiency ratings below C, according to research by Savills.
Do landlords need an EPC for every rental property?
Yes. If you are a landlord and your EPC has expired, you will need a new one when you plan to market the property to new tenants. This applies to all properties you plan to let out.
Here are the steps you can take to prepare for these EPC changes for landlords:
1. Check your EPC ratings
If you don’t know the EPC rating of your rental properties then check them. You can search for your property on the government’s EPC register.
When you check your certificate, note the ‘SAP’ score too. This number indicates whereabouts within the EPC band your property currently sits. If you’re already very close to the next band up, it could be that by making some simple changes like installing energy-efficient lighting you may move up a band. Read our guide on the top projects to make your home more energy efficient.
2. Find out about support
Look into whether it’s worth taking advantage of the Boiler Upgrade Scheme. In September 2023, the government announced the Boiler Upgrade Grant would be increased by 50% to £7,500 to help homeowners who want to replace their gas boilers with a more efficient heat pump.
3. Plan funding early
If you think you’ll need to undertake quite major work, it’s a good idea to think about how you’ll fund it sooner rather than later.
Generally, property improvements intended to boost the EPC rating are classed as ‘capital expenditure’ and not repairs and maintenance, so they can’t be written off against rental profits to reduce your tax bill. But always get tax advice for your circumstances.
Do I need my tenant’s permission before arranging an EPC assessment?
Landlords must give at least 24 hours’ written notice of any property visits. As an EPC is a legal requirement, most tenants will happily oblige, but some may want to be present when the assessor visits.
I’m a tenant – can I see the EPC?
Yes. As a tenant you are entitled to see the property’s EPC and you must be given a copy when you move in. However, you can check the property’s EPC yourself by checking the government’s EPC register in England and Wales. For properties in Scotland check the Scottish EPC register and similarly the Northern Ireland EPC register.
EPC rules in Scotland
In Scotland, all rental properties must have a minimum EPC rating of D by 31st March 2025.
If you own a rental property with poor energy efficiency, you may be considering whether to upgrade your property or cut your losses and sell your Buy to Let property.
In fact, research by The Mortgage Works in Summer 2025 found that a third of landlords with a Buy to Let mortgage who have a property in EPC band D or below (or with an unknown EPC) said they would sell their rental properties if the government’s proposals were implemented, while 25% said they plan to bring all their properties to at least a C by the government deadline.
Here’s what to weigh up:
Costs vs benefits: While there’s no doubt that making these EPC changes could be expensive, you could see an uplift in your property’s value if you make energy efficiency improvements.
Research by Knight Frank found that homes which had moved from a D to a C rating added an additional 3% to their value over and above local house price growth, equivalent to £9,003 based on the average resale value. While homes moving two bands from an E to C saw an average price uplift of 8.8% (£29,289).
However, for some landlords, this may be the final straw that is the trigger for them to sell up.
What exemptions can landlords currently register?
There are various exemptions that apply to the prohibition on letting a property with an energy efficiency rating below E.
For example, a ‘High cost’ exemption is if no improvement can be made because installing even the cheapest recommended measure would exceed £3,500 (including VAT). Find more about these on the government website.
If your property meets the criteria for any of the exemptions, you will be able to let it once you have registered the exemption on the PRS Exemptions Register.
In January 2026, in what the government called “a partial response” to that consultation it said for domestic EPCs, “We will replace the existing single cost metric with four new headline metrics: energy cost, fabric performance, heating system and smart readiness.”
The government says this will provide “clearer and more useful information to consumers, whilst enabling government to be more targeted in addressing issues such as fuel poverty and net zero, in a way that is not possible with the existing single metric”.
The government also says it will “develop guidance that is clear to understand for consumers and industry to support implementation of new-style EPCs” and that when new EPC formats are introduced, old certificates will still be valid until the end of their 10 year life.
Frequently Asked Questions
How long does an EPC last?
Once completed the EPC is valid for 10 years. However, when it expires you only need to get a new one if you’re setting up a new tenancy agreement or selling your property.
How does an EPC affect landlords?
EPC ratings affect landlords in several ways: – Legal compliance – you can’t let out a property below the legal EPC threshold, unless you have a valid exemption. – Tenant demand – renters increasingly prefer energy-efficient homes. – Property value – homes with better EPC ratings generally sell for more than equivalent properties with poor energy efficiency.
Will these EPC changes mean less choice of rental properties?
Possibly. It seems likely that some landlords will sell up rather than pay to improve their properties.
Can properties with high EPC ratings get better mortgage rates?
Yes, potentially. If your property has a high EPC rating (generally A or B) you may get access to green mortgages, which may give you access to lower rates or cashback and bigger loans. While other lenders offer lower rates or cashback if you make energy-efficiency improvements or if you take out additional borrowing to pay for measures to improve your home’s energy efficiency.Find out more in our guide on Green mortgages. However, green mortgages aren’t always the cheapest option, so always speak to a fee-free mortgage broker to explore all your options.
February 3, 2026 
