What Landlords Need to Know About the Proposed EPC Changes in 2025
As a landlord, staying on top of legislative changes is crucial—not just to stay compliant, but to protect your investment and ensure a smooth relationship with tenants. One hot topic in the property world right now is the proposed changes to EPC (Energy Performance Certificate) requirements. If you own rental properties in England or Wales, these updates could have a direct impact on your responsibilities and costs.
Here’s a breakdown of what’s changing, what it means for you, and how to prepare.
📋 The Current Rules
At the moment, all rental properties in England and Wales must have an EPC rating of E or above. This rule has been in place since April 2020 and applies to both new and existing tenancies.
But that’s about to get stricter.
🚨 The Proposed Changes
The UK government has proposed raising the minimum EPC requirement from an E to a C rating for all new tenancies from 2025, and for all existing tenancies by 2028.
The aim? To improve energy efficiency across the country’s housing stock and help meet net zero carbon targets by 2050.
Key points of the proposal:
New tenancies must meet EPC rating C or above by 2025
Existing tenancies must meet EPC rating C or above by 2028
Penalties for non-compliance could rise to £30,000
A cost cap of £10,000 per property is being discussed, meaning landlords won’t be expected to spend more than this to achieve compliance
🔍 Why It Matters
This is more than just a tick-box exercise. The EPC rating affects:
Tenant demand – renters are increasingly eco-conscious
Running costs – energy-efficient homes are cheaper to heat
Market value – properties with better EPC ratings tend to attract higher rents and better resale value
Compliance risk – ignoring this could lead to hefty fines or an inability to rent out your property
💸 What Will It Cost?
The cost of upgrading will vary depending on your property's current condition. Common improvements may include:
Installing double glazing
Upgrading boilers or heating systems
Adding loft or wall insulation
Switching to LED lighting
Installing smart meters or thermostats
The good news? Grants and financial assistance may be available under schemes such as the ECO (Energy Company Obligation) or future government initiatives.
✅ How to Prepare
Check your current EPC rating – You can look it up online for free.
Get a retrofit assessment – This gives tailored advice on what your property needs.
Budget for improvements – Start planning financially now.
Keep records – Document all energy improvements and costs to demonstrate compliance.
Stay informed – These proposals are not yet law, but they are highly likely to come into force. Keep an eye on updates.
🧠 Final Thoughts
While the upfront costs of energy upgrades may feel daunting, the long-term benefits—better tenants, higher rents, increased property value, and lower running costs—make it a smart investment.
Whether you’re managing one property or a large portfolio, the key is to act early, plan ahead, and stay compliant.
Need help navigating the upcoming EPC changes or want an expert opinion on your next steps? Reach out to a qualified energy assessor or property manager to get started.