The UK government has confirmed that private landlords in England and Wales will need to ensure their properties achieve an Energy Performance Certificate (EPC) rating of C by 2030. This change, part of the government’s broader climate and energy efficiency initiatives, is designed to help tenants save on their energy bills, improve their living conditions, and contribute to the nation’s net-zero targets.
What Does the EPC C Requirement Mean for Landlords?
Currently, landlords are required to ensure their properties meet a minimum EPC rating of E. However, with the new rules in place, this will no longer be enough by 2030. The government has confirmed that private landlords must upgrade their properties to an EPC C rating, a significant step towards improving the energy efficiency of the private rental sector.
How Many Homes Are Affected?
Approximately 48% of privately rented homes already meet the EPC C standard or higher, but 2.5 million homes remain below a C rating, with ratings ranging from D to G. This means that a substantial number of landlords will need to make energy efficiency improvements to meet the new requirements.
What Are the Costs for Landlords?
The government estimates that the cost to landlords of upgrading their properties to an EPC C rating will be between £6,100 and £6,800 per home. However, there is support available through the government’s Boiler Upgrade Scheme and Warm Homes: Local Grant, which aim to reduce the financial burden of these upgrades. These initiatives are part of the government’s wider Warm Homes Plan, which aims to improve the energy efficiency of 5 million homes, contributing to the national goal of decarbonisation in the housing sector.
Additionally, landlords will be able to register for exemptions if they cannot meet the £15,000 cost cap to improve their properties. In areas with lower rents or council tax bands, an affordability exemption could reduce this cap to £10,000. Exemptions could also last for up to 10 years.
A Phased Approach
The government proposes a phased approach to the introduction of these new standards:
- New Tenancies from 2028: Properties for new tenancies must meet the EPC C rating.
- All Tenancies by 2030: Existing tenancies will also need to comply by 2030.
These deadlines provide a clear timeline for landlords to plan and implement the necessary upgrades.
What Measures Will Landlords Need to Take?
To achieve an EPC C rating, landlords will need to make energy efficiency improvements such as installing insulation, double glazing, and upgrading heating systems. The government is also reforming EPCs with new metrics, which will include the introduction of a fabric performance standard (focused on the thermal performance of the building’s envelope) and heating and smart readiness metrics.
Landlords will likely need to prioritise fabric improvements, such as loft and cavity wall insulation and upgrading windows and doors, before moving on to other green upgrades like solar panels and battery storage systems and clean heating such as ASHP or storage heating alongside smart metering.
Exemptions and Fines
Landlords will still be able to apply for exemptions if the cost of improvements exceeds the financial cap or if they cannot make the required upgrades for other reasons. However, the government is reviewing existing exemptions and may introduce new ones, such as an affordability exemption.
Non-compliant landlords could face hefty fines, with the proposed penalty for failing to meet the new standards set at £30,000 per property.
The Bigger Picture: Why It Matters
The shift to EPC C ratings is not just about improving living conditions for tenants—it’s a crucial part of the UK’s efforts to reduce carbon emissions. Residential buildings account for 20% of the UK’s total carbon emissions, and the government has stated that achieving net zero will be impossible without near-complete decarbonization of the housing stock.
Furthermore, improving energy efficiency in rental properties will help reduce fuel poverty, which remains a significant issue. Around 24% of private renters in England are deemed to be in fuel poverty, which is twice the rate of social housing tenants. Raising the energy efficiency of homes will ensure tenants have lower energy bills and better thermal comfort.
Conclusion: Getting Ready for 2030
The new EPC C target represents a major shift for private landlords in England and Wales. While the financial burden of upgrading properties may seem daunting, there is government support available to help with the costs. Landlords will need to act now to ensure they are ready for the 2028 and 2030 deadlines. By improving the energy efficiency of their properties, landlords will not only avoid penalties but will also contribute to creating a greener, more sustainable housing market for the future.
If you’re a landlord looking to upgrade your property, now is the time to start planning. At VOR, we specialise in helping clients navigate the complexities of energy efficiency improvements and compliance with new regulations. Contact us today to find out how we can assist you in meeting the EPC C target by 2030.
