Since 1 April 2020, private landlords in England and Wales have been unable to legally let a property on an assured tenancy agreement unless it has a minimum rating of ‘E’ on the Energy Performance Certificate (EPC) – or unless an exemption for the property has been registered.
This is under the Domestic Minimum Energy Efficiency Standard (MEES), which was introduced by the Government in April 2018, when it became illegal for any property to be let privately on an assured tenancy agreement or to have a tenancy renewed if it was rated ‘F’ or ‘G’ on the EPC. From April 2020, that was extended to include existing tenancies as well.
All this is about to change following the Government’s press release on 7 February 2025, “Warm homes and cheaper bills as government accelerates Plan for Change”, which announced its plans to cut the cost of bills and lift tenants out of fuel poverty by 2030. In its plan, the Government states that families have faced rocketing energy bills as a direct consequence of an overreliance on international gas markets, while at the same time thousands of tenants have been left exposed to cold, draughty homes, pushing bills up even higher. Energy Secretary, Ed Miliband said: “As part of our Plan for Change, these new changes could save renters £240 a year by raising the efficiency of homes to cut the cost of bills.”
To help it decide what changes are needed to how minimum energy efficiency standards, or MEES, are to be applied to rental properties in the future, the Government has launched a consultation: “Improving the energy performance of privately rented homes in England and Wales” concluding 2 May 2025. Landlords and all interested parties are encouraged to respond using the online survey.
The Government’s proposal is that all rentals will need an EPC rating of “C” by 2030, and all new tenancies will need to meet the standard by 2028. Failure to comply will mean a £30,000 fine per property.
The Government estimates that landlords will have to pay between £6,100 and £6,800 to comply with the proposals. It has set a maximum cap of £15,000 per property, with an affordability exemption which would lower it to £10,000 and could be applied based on lower rents or council tax band.
There are concerns that landlords in areas where property values are lower will be disproportionately impacted by the proposed changes. For example, the business case for investing £10,000 in a property worth £100,000 would not be as robust as investing £10,000 into a property worth £600,000
The National Residential Landlords Association (NRLA) is asking for a funding package to help landlords meet the new standards. Ben Beadle, Chief Executive of the NRLA, said:
“We all want to see rented homes as energy efficient as possible, but that will require a realistic plan to achieve this.
“The chronic shortage of tradespeople to carry out energy efficiency works needs to be addressed, alongside a targeted financial package to support investments in the work required as called for by the Committee on Fuel Poverty and Citizens Advice.
“Importantly a realistic timetable is needed if the 2.5 million private rented homes, which will not currently meet the Government’s proposed standards, are to be improved.”
What complicates matters somewhat is the current EPC rating of “C” may not be the same “C” rating after some time in 2026. It’s been recognised that the current method of assessment is unreliable. Based on a narrow range of metrics, the principal metric being energy cost as opposed to energy (carbon) efficiency, it is measuring the wrong thing, and a number of assessor measurement assumptions means the grading can vary between assessors, and buildings.
The Government wants to improve the reliability and validity of the assessment process used to determine EPC ratings for buildings, so it’s developing a much more rigorous assessment process. Unfortunately for landlords this will increase the cost of assessments.
Another ongoing consultation is the Reforms to the Energy Performance of Buildings regime which consults landlords and other interested parties about the new methodology. It will consider a range of new measurements including:
This consultation is scheduled to last for 12 weeks from 4 December 2024 to 26 February 2025.
The more energy efficient your property, the better for tenants who want lower energy bills and are increasingly looking for eco-friendly properties to make their home. And although it will require some financial outlay on your part, implementing energy efficiency measures should pay off in the longer term. Find out more in our ‘Ultimate guide to having an eco-friendly property’.
The Government recognised that rented properties rated ‘F’ and ‘G’ on the EPC were wasting energy and increasing their energy efficiency would help:
Landlords can register the following exemptions:
Registration is made on a self-certification basis and the exemption applies as soon as it’s been registered. That means if you have a valid reason for not bringing a rented property up to a minimum ‘E’ rating on the EPC – i.e. you can prove that one of the exemptions listed above applies – you can legally let the property as soon as you’ve registered the exemption.
You should obtain and hold all reports, quotes, etc. that support your exemption claim, such as a surveyor’s valuation or supplier/contractor quotes.
The exemptions generally last for five years, then either improvements must be made to bring the property up to the minimum standard, or another exemption can be registered. For more information refer to GOV.UK.
Warning: there will most likely be changes to this exemption regime with the introduction of the new EPC regulations following the above consultations.
Your local authority can impose a maximum civil penalty of up to £5,000 per property, which may be made up of various separate penalties, including:
In addition to these financial penalties, landlords who do not have a valid EPC may also be unable to serve a Section 21 notice to gain possession at the end of the tenancy. Another potential cost is the loss of rental income for the period the property is legally unlettable.
For more information on what you need to do to make sure your property complies with the law and that it’s as ecofriendly as possible, read our ultimate guide to having an eco-friendly rental property. And for practical advice to help you make informed decisions about how to future proof your home, tune in to our podcast on navigating soaring energy bills and the cost of living crisis, with energy expert, Rik Smith.
Again, there are likely to be changes here following the introduction of the new EPC rules and the Renters’ Rights Bill. The main one is the Government’s proposal to increase the £5,000 maximum civil penalty per property up to £30,000.
In Scotland, Energy Performance Certificates (EPCs) are required for new buildings, sales, and tenancies. The regulations which were introduced in 2019 are changing to make homes more energy efficient and reduce carbon waste.
Following a November 2023 consultation, proposals were made for legislation to require a minimum energy efficiency standard to be met before the end of 2028 for the private rented sector. It also contains a proposal to prohibit the use of polluting heating systems after 2045 (and before then at the point of property purchase or when a heat network connection is available in a Heat Network Zone).
Current regulations
EPC requirements for new buildings
EPC requirements for tenancies
What are the exceptions for EPCs in Scotland?
Some types of buildings do not need an EPC in Scotland. These are standalone buildings (other than homes) with a useful floor area of less than 50 square metres and temporary buildings which are planned to be used for 2 years or less.
Rental properties that are exempt from EPCs
In Scotland, local authorities can issue a penalty charge notice if they believe a property owner has breached EPC regulations.
A property owner can be fined up to £5,000 for failing to provide a valid Energy Performance Certificate (EPC) when selling or letting a property. The exact penalty amount depends on the rateable value of the building.
Read our ‘Ultimate guide to having an eco-friendly property’ for practical tips and advice on how to make your rental property more energy efficient.
