The government’s proposed Decent Homes Standard is set to come into effect by 2030, with stricter regulations potentially requiring rental properties to achieve a minimum Energy Performance Certificate (EPC) rating of C. While the finer details remain unclear, landlords are already facing mounting pressure to upgrade properties or risk fines and even potential rental bans.
Tougher EPC rules could leave landlords footing the bill
Under current regulations, some rental properties only need to meet EPC band E requirements. However, more than 60% of rental homes in England and Wales are currently rated below a C, making compliance a significant challenge for landlords. Proposed fines for non-compliance could reach £5,000 per property, adding yet another financial burden.
For many landlords, these upcoming changes are yet another push out of the rental market. Research from GoodLord suggests that 30% of landlords have already sold or listed properties in the past year, with an additional 17.4% considering reducing their portfolios in the next 12 months. With stricter regulations, higher taxes, and increased tenant rights, property investment is becoming less attractive.
Home insulation: a cost-effective solution
Home insulation offers one of the most affordable and effective ways for landlords to improve their EPC ratings. Unlike expensive upgrades such as heat pumps, insulation directly reduces heat loss, keeping properties warmer and more energy-efficient. Nicholas Donnithorne, UK Technical Manager at Rentokil Property Care, highlights its benefits:
- Improving your EPC rating – “Insulation is one of the most effective ways of increasing the EPC rating and can be much cheaper than other alternatives.”
- Lower energy bills – “A well-insulated home stays warmer for longer, which means tenants will need less energy to heat their space, leading to reduced bills.”
- Environmental benefits – “Less energy needed to heat a home means a lower carbon footprint, which is good for both wallets and the planet.”
- Boosting property value – “A strong EPC rating can increase the value of your property, making it easier to sell or rent out.”
Practical steps landlords can take now
To get ahead of the 2030 legislation, landlords can start making cost-effective insulation upgrades now. Here are some of the most efficient methods:
- Loft insulation – The Energy Savings Trust estimates that up to 25% of a home’s heat is lost through an uninsulated roof. Installing loft insulation is a simple yet highly effective way to retain heat and boost an EPC rating.
- Insulating plaster systems – Designed to prevent heat loss through solid walls, insulating plaster can maintain comfortable room temperatures with reduced reliance on central heating.
- Underfloor insulation – Not only does this reduce energy bills, but it also creates a more comfortable living environment with warmer floors.
With the looming deadline for stricter EPC regulations, landlords who act now can avoid hefty fines, enhance their properties, and offer tenants lower energy costs. While the financial burden is considerable, making strategic upgrades—especially in insulation—can help landlords future-proof their investments.
