EPC RATINGS: NEW EPC REGULATIONS FOR LANDLORDS IN 2025
Alexandra Ventress
November 9th, 2023
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Energy efficiency has risen to the forefront of everyone’s minds in recent years, especially with the UK aiming for net zero by 2050. And as a landlord, you may be wondering why should the property industry be any different?
Because of this, all properties in England and Wales must achieve an EPC rating of at least a C by 2035. But what is an Energy Performance Certificate rating? How does it work? And can you improve yours?
In this article, we will be looking at all of this and more, as well as looking at new EPC regulations for landlords in 2025.
An EPC also referred to as an energy performance certificate, is a legal document which provides a building with an energy efficiency rating between G and A, with A being the best epc rating and G being the worst. The higher the rating a building gets, the lower its running costs are and more often than not the higher its value is.
As a landlord, you will require an EPC whenever you market a property for rent. They are also required when they are put on the market for sale and when they have been newly built. An EPC is valid for 10 years or until a newer version of the EPC is produced for the property. It is your duty to provide your tenant with an EPC whether it is a newly rented property or not.
Your EPC will inform you about:
- The amount of energy your investment property uses
- The amount of CO2 produced by your investment property
- The steps you will need to take to further reduce the carbon footprint of your rental property
How is Energy Performance measured?
Energy performance is measured through various elements by an assessor who will grant SAP points. Some of the factors that are rated are wall/roof insulation, boiler performance, central heating, double glazing, lighting, solar panels and carbon emissions.
- Grade A: 92+ SAP Points
- Grade B: 81-91 SAP Points
- Grade C: 69-80 SAP Points
- Grade D: 55-68 SAP Points
- Grade E: 39-54 SAP Points
- Grade F: 21-28 SAP Points
- Grade G: 1-20 SAP Points
Current requirements for EPC
When it comes to selling houses, there is currently no minimum EPC rating. However, if you are a landlord, the current minimum EPC rating for letting a property is an E so you cannot let a rental property with an F or a G rating. This also applies to any new tenancies as well as any existing tenancies upon renewal.
New EPC regulations
This being said the minimum energy rating for rental properties is set to change by December 2028. From the end of December 2028 onwards, any rented property accepting new tenancies in England and Wales is required to have an EPC rating of C or above “where practical, cost-effective and affordable.”
In order to get a band C rating for your property, you will need to score between 69 and 80 SAP points for your property.
This deadline for the new minimum EPC band was originally set for December 2025 but has since been extended.
Any existing tenancies must also achieve a C rating by the end of December 2028, and by 2035 all properties must fall within the C band of energy efficiency.
How do I find out my current EPC rating?
The best way to find the current EPC rating of your rental property is to arrange an energy certificate report. This report can cost anywhere between £35-£120, depending on the property location and size. By getting an energy certificate report performed, you will not only find out your current rating, but you will also get tips on how to improve your rating.
Originally, the Government set up the Minimum Energy Efficiency Standards to take hold in 2025, however, they have since been pushed back to December 2028. Under these proposed new standards, all rented properties in the UK must have an EPC rating of band C. These new epc regulations for landlords in 2025 are planned to be implemented as a way of reducing carbon waste and making UK property more energy efficient.
Exactly how much it costs to upgrade your rental property EPC score from the minimum energy performance band E to C will depend on the size and age of your property. However, it can cost on average around £17,000 in order for a landlord to make the necessary changes to improve their EPC rating for rented properties. If you are a landlord with a rental property with a score of G and need to get an EPC rating C, then you could be facing a bill of nearly £27,000 on average.
Thankfully, there are plenty of steps you can take to help your investment property meet the new energy guidelines proposed by the Government. Below are some of the best ways that you can take your investment property from a D to a C and improve energy efficiency:
New lightbulbs
If you are using traditional incandescent lightbulbs to illuminate your rental property then it may be time to show them the door. Incandescent bulbs drain your property of electricity and can lower your EPC score. LEDs are an alternative that not only last longer, but are also far more energy efficient.
Insulate
Another area that could be holding your EPC back is the insulation within your rental home. Poorly insulated walls mean that you may be losing a lot of heat which not only spells trouble for the environment but also your wallet. And the same goes for any poorly insulated attics as well. By adding an extra layer of insulation to the property, you will be able to improve the efficiency of your home whilst saving money.
New boiler
A slightly pricier way that you can improve your EPC score is by replacing your old boiler. However, whilst it comes at a great financial cost, it will also help significantly reduce your rental home’s carbon footprint and improve your property’s rating.
The majority of properties in the UK have an EPC rating of rating of D, and if you are a landlord then chances are your rented property is no different. However, exactly how much these changes will cost you is another question altogether. According to data from Habito, it costs roughly £3,653 for a one-bedroom flat to achieve this band upgrade. It can cost up to £6,400 to go from a D to a C and for larger detached homes it will cost roughly £12,540.
There are different ways that you can help bridge the gap between a D and a C. Window replacements are one such way that you may be interested in to help boost your score. Coasting anywhere between £100-£1230, window replacement can improve your EPC by 10 points. The exact amount that this will cost you is determined by the size of the window as well as the number of windows.
Solar panels can help to add 15 points to your EPC score, however, they are a slightly more costly option. According to the figures from the Energy Saving Trust, it can cost about £6,500 for a 4.2 kilowatt-peak solar panel system.
If you are looking to add 30 points to get your rental home to compulsory EPC band C, then you may be interested in loft insulation. Insulation alone can cost an estimated £250. Exactly how much the insulation itself will cost will depend on the type of insulation and how much is necessary.
Another way you can boost your energy performance rating and meet the new EPC regulations is by replacing your boiler. Similar to the solar panels, replacing your boiler is not the cheapest option, but it can improve your rating by 40 points. Costs of replacing a new boiler can range anywhere between £600-£2,500.
The new EPC regulations for landlords in 2025 have been met with some concern. The increase in EPC ratings for landlords means that more money will have to be spent on improvements, and with no financial support yet being offered, it can seem like a daunting task.
However, meeting new EPC rules and making energy efficiency improvements to your rental properties will not only benefit you as the landlord, but also your tenants and your property. It will improve the value of your property, as well as keep them energy efficient and easier to heat.
Your current EPC score will determine how easy it is to improve, however, there are a variety of measures that can be implemented in order to help you meet the new regulations.
Some of the steps you can take to improve include:
- External or internal wall insulation
- Floor or loft insulation
- Replace windows
- Solar panels
- New boiler
- Low energy lighting
- Heating controls
- Hot water cylinder insulation
Are there EPC exemptions?
According to EPC regulations, all properties across England and Wales must have an EPC certificate, and every private sector home must have at least an EPC band C from 31st December 2028. However, landlords may be able to argue for an EPC exemption. According to the Government website, you may be able to get an exemption if you meet the following criteria:
- You are a new landlord who has only recently started renting out your property. In this case, you may be granted a 6-month exemption.
- In order to make the required changes you need consent from a third party, which has been denied.
- You have been informed by a RICS-qualified surveyor that making changes to your rental property, such as changing the heating system or boiler, will reduce the value.
- You are able to prove that the proposed changes would be unsuitable for your property
- You have made all of the recommended changes and the property has still not received the necessary EPC score.
- You are able to show three separate quotes from different installers proving that “the cost of purchasing and installing the cheapest recommended improvement exceeds £3,500 (including VAT)”. You will also be required to prove that you are “satisfied that the measure(s) exceed this amount”. This is referred as to a high-cost exception and is only available to domestic properties.
- If you have a non-domestic property, then instead you can show that “the cost of purchasing and installing a recommended improvement or improvements does not meet a simple 7-year payback test”. This test states that “the expected value of savings on energy bills that the measure (or package of measures) is expected to achieve over a period of 7 years, starting with the date the installation is completed, are less than the cost of repaying it.”
Start your property portfolio today!
Energy efficiency has risen to the forefront of everyone’s minds in recent years, especially with the UK aiming for net zero by 2050. And as a landlord, you may be wondering why should the property industry be any different?
Because of this, all properties in England and Wales must achieve an EPC rating of at least a C by 2035. But what is an Energy Performance Certificate rating? How does it work? And can you improve yours?
In this article, we will be looking at all of this and more, as well as looking at new EPC regulations for landlords in 2025.
An EPC also referred to as an energy performance certificate, is a legal document which provides a building with an energy efficiency rating between G and A, with A being the best epc rating and G being the worst. The higher the rating a building gets, the lower its running costs are and more often than not the higher its value is.
As a landlord, you will require an EPC whenever you market a property for rent. They are also required when they are put on the market for sale and when they have been newly built. An EPC is valid for 10 years or until a newer version of the EPC is produced for the property. It is your duty to provide your tenant with an EPC whether it is a newly rented property or not.
Your EPC will inform you about:
- The amount of energy your investment property uses
- The amount of CO2 produced by your investment property
- The steps you will need to take to further reduce the carbon footprint of your rental property
How is Energy Performance measured?
Energy performance is measured through various elements by an assessor who will grant SAP points. Some of the factors that are rated are wall/roof insulation, boiler performance, central heating, double glazing, lighting, solar panels and carbon emissions.
- Grade A: 92+ SAP Points
- Grade B: 81-91 SAP Points
- Grade C: 69-80 SAP Points
- Grade D: 55-68 SAP Points
- Grade E: 39-54 SAP Points
- Grade F: 21-28 SAP Points
- Grade G: 1-20 SAP Points
Current requirements for EPC
When it comes to selling houses, there is currently no minimum EPC rating. However, if you are a landlord, the current minimum EPC rating for letting a property is an E so you cannot let a rental property with an F or a G rating. This also applies to any new tenancies as well as any existing tenancies upon renewal.
New EPC regulations
This being said the minimum energy rating for rental properties is set to change by December 2028. From the end of December 2028 onwards, any rented property accepting new tenancies in England and Wales is required to have an EPC rating of C or above “where practical, cost-effective and affordable.”
In order to get a band C rating for your property, you will need to score between 69 and 80 SAP points for your property.
This deadline for the new minimum EPC band was originally set for December 2025 but has since been extended.
Any existing tenancies must also achieve a C rating by the end of December 2028, and by 2035 all properties must fall within the C band of energy efficiency.
How do I find out my current EPC rating?
The best way to find the current EPC rating of your rental property is to arrange an energy certificate report. This report can cost anywhere between £35-£120, depending on the property location and size. By getting an energy certificate report performed, you will not only find out your current rating, but you will also get tips on how to improve your rating.
Originally, the Government set up the Minimum Energy Efficiency Standards to take hold in 2025, however, they have since been pushed back to December 2028. Under these proposed new standards, all rented properties in the UK must have an EPC rating of band C. These new epc regulations for landlords in 2025 are planned to be implemented as a way of reducing carbon waste and making UK property more energy efficient.
Exactly how much it costs to upgrade your rental property EPC score from the minimum energy performance band E to C will depend on the size and age of your property. However, it can cost on average around £17,000 in order for a landlord to make the necessary changes to improve their EPC rating for rented properties. If you are a landlord with a rental property with a score of G and need to get an EPC rating C, then you could be facing a bill of nearly £27,000 on average.
Thankfully, there are plenty of steps you can take to help your investment property meet the new energy guidelines proposed by the Government. Below are some of the best ways that you can take your investment property from a D to a C and improve energy efficiency:
New lightbulbs
If you are using traditional incandescent lightbulbs to illuminate your rental property then it may be time to show them the door. Incandescent bulbs drain your property of electricity and can lower your EPC score. LEDs are an alternative that not only last longer, but are also far more energy efficient.
Insulate
Another area that could be holding your EPC back is the insulation within your rental home. Poorly insulated walls mean that you may be losing a lot of heat which not only spells trouble for the environment but also your wallet. And the same goes for any poorly insulated attics as well. By adding an extra layer of insulation to the property, you will be able to improve the efficiency of your home whilst saving money.
New boiler
A slightly pricier way that you can improve your EPC score is by replacing your old boiler. However, whilst it comes at a great financial cost, it will also help significantly reduce your rental home’s carbon footprint and improve your property’s rating.
The majority of properties in the UK have an EPC rating of rating of D, and if you are a landlord then chances are your rented property is no different. However, exactly how much these changes will cost you is another question altogether. According to data from Habito, it costs roughly £3,653 for a one-bedroom flat to achieve this band upgrade. It can cost up to £6,400 to go from a D to a C and for larger detached homes it will cost roughly £12,540.
There are different ways that you can help bridge the gap between a D and a C. Window replacements are one such way that you may be interested in to help boost your score. Coasting anywhere between £100-£1230, window replacement can improve your EPC by 10 points. The exact amount that this will cost you is determined by the size of the window as well as the number of windows.
Solar panels can help to add 15 points to your EPC score, however, they are a slightly more costly option. According to the figures from the Energy Saving Trust, it can cost about £6,500 for a 4.2 kilowatt-peak solar panel system.
If you are looking to add 30 points to get your rental home to compulsory EPC band C, then you may be interested in loft insulation. Insulation alone can cost an estimated £250. Exactly how much the insulation itself will cost will depend on the type of insulation and how much is necessary.
Another way you can boost your energy performance rating and meet the new EPC regulations is by replacing your boiler. Similar to the solar panels, replacing your boiler is not the cheapest option, but it can improve your rating by 40 points. Costs of replacing a new boiler can range anywhere between £600-£2,500.
The new EPC regulations for landlords in 2025 have been met with some concern. The increase in EPC ratings for landlords means that more money will have to be spent on improvements, and with no financial support yet being offered, it can seem like a daunting task.
However, meeting new EPC rules and making energy efficiency improvements to your rental properties will not only benefit you as the landlord, but also your tenants and your property. It will improve the value of your property, as well as keep them energy efficient and easier to heat.
Your current EPC score will determine how easy it is to improve, however, there are a variety of measures that can be implemented in order to help you meet the new regulations.
Some of the steps you can take to improve include:
- External or internal wall insulation
- Floor or loft insulation
- Replace windows
- Solar panels
- New boiler
- Low energy lighting
- Heating controls
- Hot water cylinder insulation
Are there EPC exemptions?
According to EPC regulations, all properties across England and Wales must have an EPC certificate, and every private sector home must have at least an EPC band C from 31st December 2028. However, landlords may be able to argue for an EPC exemption. According to the Government website, you may be able to get an exemption if you meet the following criteria:
- You are a new landlord who has only recently started renting out your property. In this case, you may be granted a 6-month exemption.
- In order to make the required changes you need consent from a third party, which has been denied.
- You have been informed by a RICS-qualified surveyor that making changes to your rental property, such as changing the heating system or boiler, will reduce the value.
- You are able to prove that the proposed changes would be unsuitable for your property
- You have made all of the recommended changes and the property has still not received the necessary EPC score.
- You are able to show three separate quotes from different installers proving that “the cost of purchasing and installing the cheapest recommended improvement exceeds £3,500 (including VAT)”. You will also be required to prove that you are “satisfied that the measure(s) exceed this amount”. This is referred as to a high-cost exception and is only available to domestic properties.
- If you have a non-domestic property, then instead you can show that “the cost of purchasing and installing a recommended improvement or improvements does not meet a simple 7-year payback test”. This test states that “the expected value of savings on energy bills that the measure (or package of measures) is expected to achieve over a period of 7 years, starting with the date the installation is completed, are less than the cost of repaying it.”
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