Private landlords in England and Wales face significant energy efficiency requirements that will tighten considerably over the coming years. This guide covers the current rules, the 2030 EPC C deadline, upcoming changes to how energy performance is measured, and what landlords need to do to prepare.
Current rules: EPC E minimum
Since April 2020, all privately rented properties in England and Wales must have an Energy Performance Certificate (EPC) rating of at least E before they can be let to new or existing tenants. Landlords who let properties rated F or G face penalties of up to £5,000 per property.
Exemptions are available where improvements are not cost-effective or technically feasible. Landlords claiming an exemption must register it on the PRS Exemptions Register, and exemptions last for five years.
The current cost cap requires landlords to spend up to £3,500 (including VAT) on energy efficiency improvements before claiming a “high cost” exemption.
EPC C by 2030: the new deadline
The government’s Warm Homes Plan, published in early 2025, confirmed that all private rented properties in England and Wales must meet an EPC C rating (or equivalent) by October 2030.
Key points from the 2025 consultation:
- The deadline applies to all existing tenancies, not just new lets
- An estimated 52 percent of private rented homes will need upgrading
- Average tenant savings are projected at £240 per year on energy bills
- The cost cap for landlord spending is expected to increase (final figure TBC)
- Exemptions will remain available for properties where improvements are not feasible
Government modelling suggests private landlords face a collective £26.5 billion bill to bring properties up to the required standard.
Home Energy Model: new way of measuring performance
The government is also reforming how energy performance is measured. The current EPC system uses a single cost-based metric. The new Home Energy Model will replace this with four headline measures:
- Energy cost – estimated annual running costs
- Fabric performance – insulation and heat retention of the building
- Heating system – efficiency and carbon intensity of heating
- Smart readiness – ability to generate, store and manage energy (solar, batteries, smart meters)
Under the proposed heating system metric, properties heated by gas boilers may struggle to achieve a C rating, while those with electric heat pumps would automatically meet the standard. The smart readiness metric typically requires solar panels and a smart meter to score well.
This has raised concerns for landlords with older properties – particularly Victorian terraces, heritage buildings and flats – where installing solar panels, batteries or heat pumps may not be practical.
Decent Homes Standard
Alongside EPC requirements, the Decent Homes Standard – previously applying only to social housing – is being extended to the private rented sector under the Renters’ Rights Act.
The standard covers property condition including damp, heating, ventilation and thermal comfort. Landlords have until 2035 to comply. Local authorities will have enforcement powers including improvement notices and civil penalties.
Penalties for non-compliance
Penalties for breaching energy efficiency rules are significant:
| Breach | Maximum penalty |
|---|---|
| Letting a sub-standard property for less than 3 months | £2,000 |
| Letting a sub-standard property for 3 months or more | £4,000 |
| Providing false or misleading information on the PRS Exemptions Register | £1,000 |
| Failure to comply with a compliance notice | £2,000 |
| Maximum total penalty per property | £5,000 |
Penalties under the Decent Homes Standard enforcement regime could be higher – up to £30,000 per offence in some cases.
Exemptions
Landlords may be exempt from the EPC C requirement if:
- Cost cap exceeded – improvements would cost more than the specified cap and the property cannot reach C even with that spending
- Wall insulation exemption – cavity, external or internal wall insulation is not appropriate due to potential damage
- Consent exemption – a third party (tenant, freeholder, planning authority) has refused consent for necessary works
- Devaluation exemption – an independent surveyor confirms improvements would reduce the property’s value by more than 5 percent
- New landlord exemption – temporary exemption for landlords who have recently become responsible for a property
All exemptions must be registered on the PRS Exemptions Register with supporting evidence.
Funding and support
Several funding schemes may help landlords meet the costs:
- ECO4 – the Energy Company Obligation requires energy suppliers to fund improvements for low-income and vulnerable households, including some private tenants
- Boiler Upgrade Scheme – grants of up to £7,500 towards heat pump installation
- Local authority grants – some councils offer grants for insulation and heating improvements
- Green finance – specialist lenders offer loans for energy efficiency improvements
Landlords should check eligibility for ECO4 funding via their tenant’s energy supplier, and search for local authority grants via the Simple Energy Advice service.
What landlords should do now
- Check current EPC ratings – identify any properties rated D or below that will need improvement before 2030
- Get updated EPCs – certificates are valid for 10 years, but older assessments may not reflect current performance accurately
- Assess improvement options – get quotes for insulation, heating upgrades and other measures
- Budget for costs – factor energy efficiency spending into long-term investment plans
- Explore funding – check eligibility for ECO4, the Boiler Upgrade Scheme and local grants
- Consider timing – improvements made during void periods or planned refurbishments may be more cost-effective
- Register exemptions – if improvements are not feasible, ensure exemptions are properly registered with evidence
Timeline
| Date | Requirement |
|---|---|
| Now | EPC E minimum for all private rented properties |
| 2026 | Home Energy Model expected to replace current EPC methodology |
| October 2030 | EPC C (or equivalent) required for all private rented properties |
| 2035 | Decent Homes Standard compliance deadline |
Landlords with properties rated D or below should start planning improvements now. With an estimated 52 percent of PRS homes needing work, demand for contractors and materials is likely to increase as the 2030 deadline approaches.
Last updated: February 2026
Sources: MHCLG consultation, Warm Homes Plan, MEES Regulations
