EPC C by 2030: What the new rules mean for landlords

The UK Government has now confirmed that all privately rented homes in England and Wales must reach a band C (or above) on their Energy Performance Certificates by 2030. This long-awaited decision provides clarity for landlords and sets a clear timeline for improving the energy efficiency of the private rented sector (PRS).

Encouragingly, around 58% of PRS properties already meet this excellent energy efficiency standard. This number has increased over the past decade, meaning some landlords have been working hard to upgrade and retrofit their properties.

However, research by the TDS Charitable Foundation shows nearly half of tenants say their home’s energy efficiency could be improved, rising to over 50% among tenants with disabilities, those receiving benefits, and families with children.

Why the Government is raising the EPC target

The new target is designed to:

• Help tenants struggling with high energy bills

• Cut carbon emissions

• Improve the overall quality of PRS housing

• Improve health outcomes by reducing cold, damp, and mouldy homes

Evidence suggests warmer homes can reduce avoidable illness, delivering wider savings to public services such as the NHS. Importantly, the benefits are expected to be greatest for the most vulnerable tenants.

The key rules landlords need to know

The Government’s response confirms several important details:

• Deadline: all relevant PRS properties must comply by 1 October 2030. Earlier phased deadlines have been dropped.

• Scope: Short-term “Airbnb” type lets need not comply with the new EPC C standard.

• Cost cap: Landlords will be required to invest a maximum of £10,000 per property to meet EPC C.

  • This is higher than the current cost cap of £3,500

  • It is lower than the original figure proposed of £15,000

  • Many landlords will not need to spend this much – the average necessary spend is estimated at £5,400

• Exemptions: Landlords may register a property as exempt, for one of eight new specific reasons (see under Executive Summary). If the property is validly registered as exempt, the landlord may continue letting it legally. 

• Backdating: Landlords can count any spending on energy efficiency measures since 1 October 2025 towards their maximum spend. 

• Lower-value properties: Properties valued under £100,000 will be subject to a sliding-scale lower maximum spend of 10% of the property’s value. Example: a £65,000 flat would have a maximum spend of £6,500.

• Enforcement: After 1 October 2030, local authorities can issue a maximum penalty of £30,000 per breach, for each non-compliant property

EPC reform is coming too

From 2026, Energy Performance Certificates will be reformed to improve accuracy. A new dual-metric system will apply:

1. Fabric first: landlords must firstly invest in “fabric” measures like insulation and draught-proofing that stop heat escaping

2. One secondary metric – landlords may choose which metric best suits:

   • Smart readiness (e.g. solar panels, smart meters), or

   • Low-carbon heating upgrades (e.g. a District Heating Network)

Interestingly, TDS Charitable Foundation’s Voice of the Tenant survey showed that 34% of tenants would like to have a smart meter installed but did not know it was allowed in a rented property.

Special considerations for historic properties

Whilst historic properties often can be retrofitted with beautiful results (see demonstrator properties in York and Glasgow), the specialist techniques and materials may increase cost and difficulty.  

The rules are not intended to force period properties to get inappropriate or damaging measures. Landlords of these properties should seek expert advice (for example, the Society for the Protection of Ancient Buildings advice line or Historic England)  before proceeding and check whether exemptions apply.

Funding support is available

It’s important for landlords concerned about costs to familiarize themselves with the available funding schemes. New research by the TDS Charitable Foundation coming in March indicates that funding for landlords’ energy efficiency improvements often goes unclaimed partially through lack of awareness.

The new Warm Homes: Local Grants are designed to help vulnerable tenants in properties in bands D, E, F, or G. The Boiler Upgrade Scheme can provide up to £7500 of grant funding for upgrading an old heating system. Check with your local council too to see if there are any regional schemes in your area.

Landlords, start planning now!

2030 may feel distant, but upgrades take time – especially where permissions, tenant cooperation, or specialist works are needed.

Review your EPC ratings, explore funding options, and build energy upgrades into your long-term investment plans now to avoid rushed decisions and costly penalties later.