Major Changes to EPCs and What They Mean for Landlords

The Government’s Energy Performance Certificate (EPC) regime is undergoing some of the most significant changes in a generation and landlords need to understand what’s coming and how it will affect their portfolios.

What is changing?

The EPC framework, which measures the energy efficiency of buildings from A (most efficient) to G (least efficient), is being reformed in three key ways:

EPC Minimum Standard Still Rising to C by 2030

The requirement for privately rented properties to meet a minimum of EPC C by 2030 remains in place.
This means that, by 1 April 2030:

All rental properties in England and Wales must achieve at least an EPC rating of C
Properties that remain at D or below will not be legally lettable unless exempt

This deadline has not changed — despite ongoing debate and consultation. Landlords with older or hard‑to‑upgrade stock (e.g., solid‑wall properties) should be preparing now.

New EPC Tools & Methodology — Delayed, but Still Coming

A redesigned EPC assessment system is being introduced to deliver ratings that better reflect actual energy performance rather than theoretical potential.

Key points about the reform:

The new EPC methodology is no longer implemented immediately — its rollout has been delayed into 2027
When introduced, the new system will be a more rigorous and detailed assessment, including:
- Enhanced modelling of heat retention
- Updated assumptions about heating systems and insulation
- A broader set of performance factors than currently used

Although implementation has slipped, the Government has made clear that the 2030 minimum standard still stands and will ultimately be measured using the new system.

Expanded Scope & Stricter Compliance

With the new methodology, more properties may fall below target ratings — even if they currently meet them under the old rules. This includes:

HMOs
Holiday lets
Some commercial/residential mixed uses
Hard‑to‑treat buildings (e.g., listed or solid wall)

At the same time, the Government is consulting on tighter compliance enforcement, including clearer requirements for documentation and record keeping.

What This Means in Practice

🧰 Upgrade Costs Will Be Real

Achieving C often requires fabric improvements, such as:

Wall, roof or floor insulation
High‑efficiency heating systems (e.g., heat pumps)
Double or triple glazing
Solar PV or battery solutions in some cases

For landlords of pre‑war or traditionally constructed properties, upgrades can be costly and technically complex.

💷 Budgeting & Planning Matters

Claims that “just install a boiler” or “thatched buildings are exempt” are no longer reliable.

Instead, landlords should:

Commission professional energy assessments now
Model upgrade options and costs
Identify potential exemptions early

Exemptions are still available, but the bar for qualification is high and must be documented.

📈 Impact on the Rental Market

These reforms will likely:

Increase demand for energy‑efficient homes
Push tenants away from poorly insulated stock
Create a two‑tier rental market over the next few years

Properties already at or near C will be more attractive to prospective tenants and may command higher rents.

Deadlines Landlords Need to Know

Deadline	Requirement
Now – 2027	Review and plan for upgrades; secure professional EPCs
2027	Revised EPC system fully introduced
1 April 2030	Minimum EPC C requirement enforced

Failing to comply after 2030 can lead to significant penalties, including:

Fines based on property value (not just per breach)
Marketing restrictions (cannot let non‑compliant properties)
Potential civil claims from tenants (in some cases)

Practical Next Steps

✔ Get an up‑to‑date EPC now
EPCs older than 10 years may not reflect your property’s condition.

✔ Consider retrofit planning
Work with an energy assessor or retrofit coordinator to model upgrades cost‑effectively.

✔ Check for available funding
Local and national schemes (e.g., ECO+ and other grants) may support insulation or heating upgrades.

✔ Document everything
Detailed records of assessments and work carried out will be critical for compliance.

Final Word

The EPC reform is one of the most transformative regulatory shifts for landlords in over a decade. Though the revised EPC system’s rollout has been delayed, the 2030 minimum standard remains firm — and under the new regime many properties will face new challenges reaching it.

Far from a “box‑ticking” exercise, EPC compliance will soon be central to:

Legality of lettings
Tenant demand
Property value and investment performance

Landlords who prepare now — rather than wait — will protect their assets and avoid costly last‑minute upgrades.

If you would like tailored advice about buying, selling, mortgages or investing locally, get in touch with your nearest Hannells branch or arrange a free, no-obligation property valuation today.