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Landlords in the dark over looming EPC changes

A staggering 42% of landlords remain unaware of the impending changes to Energy Performance Certificate (EPC) regulations, which will soon require private rented properties to meet a minimum rating of C. With the UK government’s latest consultation on EPC standards underway, landlords are being urged to act before it’s too late.

Many landlords unaware of new legal requirements
On 4 December 2024, the UK government launched a consultation on proposed changes to the Energy Performance Certificate (EPC) rating system, which is expected to legally mandate that all private rented properties must achieve a minimum rating of C by 2030. However, new data from epIMS, a specialist energy efficiency platform for landlords, has revealed that 40% of landlords in England are unaware that this consultation is even taking place.

Even more concerning, 42% of landlords do not realise that the minimum EPC standard will soon increase from E to C. Since EPC certificates remain valid for 10 years, many landlords have not had to review their rating in some time—resulting in a lack of awareness and preparedness for the upcoming legal requirements. A recent survey by epIMS found that 27% of landlords do not even know the current EPC rating of their rental properties.

Lack of understanding could cost landlords dearly
EPC ratings are graded alphabetically, from A (most efficient) to G (least efficient), but what many landlords fail to realise is that these letter grades are based on an underlying numerical points system. The survey found that 32% of landlords do not know EPCs are determined by points, while an alarming 65% do not know how many points are required to achieve a rating of C.

With just six years left before the 2030 deadline, landlords who fail to upgrade their properties will be unable to legally rent them out. Yet, when asked about their plans for making the necessary improvements, a significant 75% said they intend to wait until the last possible moment before taking action. Only 15% said they would make the upgrades within the next 12 months, while 11% plan to do so within the next four years.

Financial burden and uncertainty slowing landlord action
For many landlords, the biggest obstacle to upgrading their properties is the cost of improvements. The epIMS survey found that the most common concern among landlords was the financial burden of meeting the new standards. The second biggest challenge was understanding which specific improvements would most effectively increase their EPC rating.

Craig Cooper, Chief Operating Officer at epIMS, highlighted the growing frustration among landlords: “A lot of landlords feel like they’re swimming against the tide at the moment, and with the government now intent on introducing new minimum EPC standards, it’s understandable that many feel frustrated at yet another policy that is likely to eat away at their profit margins.”

However, Cooper reassures landlords that improving an EPC rating doesn’t have to be an overwhelming financial strain. “Improving an EPC rating needn’t be difficult or overly expensive—it just requires a good understanding of how ratings are attributed and how different improvements can increase your score. No two properties are the same, so what’s important is gaining insight into exactly where your specific property is falling short and what improvements are going to have the biggest impact in terms of the points awarded.”

Landlords who take proactive steps to understand their property’s EPC rating may find that only minor improvements are needed to meet the required standard. “For example, the difference between a D and a C might only be a few EPC points that can be collected through the most minor of improvements,” Cooper added.

Time running out for landlords to prepare
With the UK government pressing ahead with EPC reforms, landlords must act now to avoid penalties and ensure their properties remain legally rentable. The sector is already under pressure from increased regulations, tax changes, and rising costs—adding further complexity to property investment.

Failing to meet the new standards could leave landlords unable to let out their properties, potentially leading to financial losses and further strain on the already limited rental market.

 

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