As a landlord, you’re always trying to keep your property in tip-top shape, and that includes making sure your EPC rating doesn’t leave you out in the cold, especially with new EPC regulations for landlords in 2025. Not only does a higher rating help meet regulations, but it also cuts down on energy bills for your tenants and helps your property shine in a competitive rental market.
In this article, we will cover what the current EPC regulations are, explore the new EPC regulations for 2025, question how they will affect landlords and offer handy advice on what you can do to improve your EPC rating.
What are the current regulations?
The EPC rating was first introduced in 2007, rating a property’s energy efficiency on a scale from ‘A’ to ‘G’ (A being the most efficient and G being the least). Since April 1st 2018, new MEES (minimum energy efficiency standards) required landlords in England and Wales to meet a minimum EPC rating of ‘E’ or higher for their rental properties. EPC’s are valid for ten years and landlords are only required to get a new EPC if they are re-letting to a new tenant when the ten years are up. Failure to provide an EPC can result in penalties.
New EPC regulations for landlords in 2025
The government has proposed that the minimum energy standards for rented properties will shift from an ‘E’ rating to a ‘C’ rating. For new tenancies, this will be by December 2025, and for existing tenancies this will be by December 2028. These changes are to ensure homes are more energy efficient, contributing towards the government’s net-zero targets for 2050.
These landlord EPC requirements mean that if you want to advertise your property for rental from 2025 onwards, you’ll be required to give letting agents an updated and compliant EPC for the property you are advertising. Whilst the new EPC regulations are still under consultation, they are highly likely to be enforced as it will push landlords to make more significant energy upgrades.
How will the new EPC regulations affect landlords?
Considering 60% of homes in the private rental sector have an EPC rating of ‘D’ or lower, the impact of the new landlord EPC requirements is likely to be significant as upgrading the energy efficiency in properties can cost thousands of pounds. Landlords will need to invest in upgrades such as better insulation and energy efficiency boilers to comply, leading to significant upfront costs.
Despite the costs, these upgrades could have long-term benefits. More energy-efficient homes tend to attract tenants more easily, reduce energy bills and may even increase property values. For landlords who act early, there could also be opportunities for financing options which could help offset some of the costs.
Are there any grants to help with EPC upgrades?
There are some schemes and grants available to help landlords with EPC requirements. One of the main ones is the ECO4 scheme. This scheme provides funds for eligible landlords to make energy efficiency improvements to their property.
New funding has also been announced to support upgrades on low income homes. The money will be distributed through the ‘Warm Homes: Local Grant’ scheme by eligible local authorities. Eligible landlords will receive up to £30,000 for improvements to their first rental, and £15,000 for additional rentals. These properties must have an EPC rating of ‘D’ to ‘G’.
Additionally, many local councils offer their own financial support for energy efficiency measures, so landlords should check with their local authority to see what programs might be available in their area.
It’s worth noting that landlords will have to meet certain criteria to be eligible for a grant. This criteria includes:
- To have the property in a postcode eligible for council funding.
- Rent a property to tenants who are receiving child benefits.
- Low income households whose gross income is below £36,000 a year.
- Own a rental property where tenants have received benefits in the past 18 months.
Are there any exemptions?
There are a handful of exemptions for current regulations, but it’s not clear yet if and how these exemptions will change alongside the new EPC regulations for 2025. It’s likely, however, that these exemptions will carry over. It’s also worth noting that an extensive EPC exemption list already exists on the government website. Let’s explore a few examples of existing exemptions:
- New landlords: Those who have just become a landlord or have recently inherited a property may qualify for a temporary exemption that lasts for six months.
- Wall insulation: This is under the circumstance where the property is not suitable for internal or external wall insulation.
- All improvements made: Where all the relevant energy efficiency improvements for a property have been made and the property remains below standard.
- High cost: When the cost of purchasing and installing the cheapest recommendation for improvement costs more than £3,500.
How to improve your EPC rating
With the new EPC regulations for landlords in 2025, landlords will need to prepare to improve their EPC rating, especially if your property’s rating is at an ‘E’ to ‘G’. There are lots of different steps you can take to improve the energy rating of your property. These steps include:
- Switch to LED bulbs.
- Start using a smart metre
- Install an energy efficient boiler.
- Insulate the walls and roof of the property.
- Upgrade to double or triple glazed windows.
Why make EPC upgrades now?
While December 2025 may seem way off, taking an EPC rating from an ‘E’ to a ‘C’ can be costly and disruptive, so it’s worth making changes well before the deadline. By acting early, you can spread out the cost of improvements. This will help avoid the last-minute rush when prices might go up as demand increases. Plus, getting ahead of the regulations means your property will stay compliant and you won’t risk fines or being unable to rent out your property.
A higher EPC rating also makes your property more attractive to tenants, and helps you contribute to a well-maintained rental. Tenants are looking for more energy-efficient homes that help lower their bills, so a better rating can help you stand out in the rental market. Overall, making EPC upgrades now is a smart way to protect your investment and stay ahead of the game.
How Aspire to Move can help
At Aspire to Move, we take great pride in ensuring that our team is up to date with the latest legislation, including the upcoming EPC regulations for 2025. This allows us to offer our clients the best advice and support.
Whether you need guidance on making the right upgrades or need rental advice, become an Aspire landlord today! If you want to find out more, get in touch with us.
