If you’ve been keeping up with the news of late, you may have heard about new EPC rules for landlords being introduced in 2025. But what is EPC and what does this news mean for you as a landlord? In this in-depth article from the experts at LetsProtect, we explain everything you need to know.

What is the EPC?

EPC stands for Energy Performance Certificate, a document you need to prove that your rental property is energy-efficient. Before you can rent out your property you will need to acquire one of these documents.

The EPC includes information on your property’s energy usage. This includes:

• The type of fuel you use for your heating, lighting, hot water and insulation
• The potential savings that could be made by reducing energy usage
• The impact your property can have on the environment (CO2 emissions)
• Energy performance: A breakdown of how your property uses energy
• Recommendations on how you can improve the energy efficiency of your property

With a score out of 100, your property will be ranked between A and G (A being the most energy-efficient). This is how your score translates into a rank:

• A = 92+
• B = 81–91
• C = 69–80
• D = 55–68
• E = 39–54
• F = 21–38
• G = 1–20

‍How is the EPC scored?‍

The EPC score, out of 100, is calculated using a Standard Assessment Procedure (SAP), generated by each part of an inspection. This, in turn, will give you your Energy Efficiency Rating, anywhere between A and G.

Does the Energy Efficiency Rating of my rental property need to meet a certain level?

Yes. Since 2018, all rental properties must comply with Minimum Energy Efficiency Standards (MEES). This means the Energy Efficiency Rating of your rental property must be E or above. However, with potential, new EPC regulations for landlords in 2025, this could change soon. More of which, we’ll discuss below.

What if my Energy Efficiency Rating is F or G?

If you have an Energy Efficiency Rating of F or G, you will no longer be able to let that property (unless you have a valid exemption). To continue letting, you must take action to improve the Energy Efficiency Rating of your property to E or above. As previously mentioned, with new EPC rules for landlords potentially being introduced, this may change.

You will not be expected to spend more than £3,500 (+VAT) in order to do this.

Despite this, there are many reasons why a rental property may be exempt from complying with the MEES. You can find out more about this and register an exemption at Gov.uk.

‍How do I obtain an EPC?

To obtain an EPC, you will need to book an assessment with an accredited assessor. If your property is in England or Wales, you can find an Assessor at Gov.uk. The process for finding an assessor is different in Scotland. You can find out more about this at the Scottish Energy Performance Certificate Register.

You will need to give your tenants at least 24 hours written notice of the assessment taking place.

Once the assessment is complete, the assessor will provide you with a digital copy of your EPC. You must give a copy of your new EPC to your tenants.

‍How much does an EPC cost?

The cost of an assessment can vary depending on the size and location of your property. However, you are likely looking at a cost of somewhere between £60 to £120. You can always contact different assessors for quotes that accommodate to your budget more appropriately.

‍How often do Landlords need to do an EPC?

A new EPC is required every 10 years. However, as long as you have the same tenants and there are no changes to their tenancy agreement, you don’t need to renew an expired EPC until such a time that you plan to let to new tenants. You may also wish to renew an expired EPC to reflect any improvements in energy efficiency you have made.

Failure to provide a copy of your EPC to your tenants (a legal requirement) could result in a penalty of £500, while failure to produce a valid EPC could see you paying a fine of £5,000. This is why it’s certainly worth keeping track of when your EPC expires.

‍What are the new EPC regulations for landlords in 2025?

In 2022, the government proposed new EPC rules for landlords, the main one being a change to the MEES rules for new rental properties, requiring them to have an Energy Efficiency Rating of C or above (rather than the existing requirement of E or above). These new EPC regulations for landlords in 2025 would then be added to in 2028, with existing rental properties also required to have an Energy Efficiency Rating of C or above.

In September 2023, Prime Minister Rishi Sunak announced that these new EPC regulations for landlords in 2025 would no longer be introduced. However, this doesn’t necessarily mean that new EPC rules for landlords won’t be brought in.

The new Labour government, headed by Prime Minister Sir Keir Starmer, have indicated that landlords will need to ensure properties have an Energy Efficiency Rating of C or above by 2030.

In July 2024, Ed Miliband, Energy Security and Net Zero Secretary, said:  “One thing that this Government will do that the last Government did not, is demand that landlords raise the standard of their accommodation to a proper energy performance certificate standard C by 2030.”

To date, no further details have been announced regarding these new EPC rules for landlords.

‍How do I prepare for these new EPC rules for landlords?

2030 may seem a long way into the future, but it is worth setting aside time and budget to plan for any improvements you may need to make to your rental property.

On page one of your current EPC, you will see your current Energy Efficiency Rating. Alongside this, you will find a potential rating, which can be achieved by undertaking recommended actions. These actions are also listed on page one, demonstrating how you can make your property more energy efficient and improve your Energy Efficiency Rating, along with indicative costs and potential savings.

On page three of your EPC, you will find a more detailed list of recommended improvements, showing how much your Energy Efficiency Rating could go up once each action is completed.

These actions may include things like:

• Adding internal or external wall insulation
• Adding floor insulation
• Fitting low-energy lighting for all fixed outlets
• Installing heating controls (e.g. a room thermostat)
• Replacing your current boiler with a new condensing boiler
• Adding solar panels or water heating

The great thing is that these recommended improvements are listed in priority order to help you work out which to tackle first. By going through the list methodically and making these improvements, you are all set—not just for any new EPC regulations for landlords in 2025, but for any future new EPC rules for landlords. 

‍New EPC rules for landlords: In summary

While the latest news would suggest there will be no new EPC regulations for landlords in 2025, it is still worth thinking about what you may need to do to improve the energy efficiency of your rental property. The new Labour government have indicated that, by 2030, all rental properties will need an Energy Efficiency Rating of at least C, compared to the current requirement of E. So, there isn’t much time to rest on your laurels. Your EPC will provide you with all the information to ensure you can continue letting your property into the 2030s and beyond.

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