How changing EPC regulations affect landlords and tenants

An energy performance certificate (EPC) provides a detailed picture of a property’s energy efficiency and carbon dioxide (CO2) emissions.

As a landlord, you must ensure your property has a valid EPC and meets the minimum energy efficiency standards. 

Here we look at EPCs in detail, the latest changes and what the future holds for landlords and tenants.  

What are the EPC requirements? 

So how do you go about getting your EPC? First, you must get an EPC survey conducted by a domestic energy assessor.

It will usually take around an hour and cost between £35 and £120, including VAT. 

Essentially, the assessor looks at the interior and exterior of your property to determine how energy efficient it is and also to see how and where efficiency can be improved. 

These are some of the areas they assess: 

• Windows
• Roofs, walls and insulation 
• Boilers and heating systems 
• Renewable energy devices such as solar panels
• Lighting 
• Fireplaces 
• Building dimensions and age 

Once the inspection is complete, your assessor will create an EPC and grade your property’s energy performance.

A is the best possible score, and G is the poorest. Currently, your property must achieve a valid EPC rating of E or above, or it cannot be legally let. 

However, landlords will never be required to spend more than £3,500 on improvements to the energy efficiency of a property.

What have been the latest EPC proposals? 

The minimum energy efficiency standards (MEES) have been in play since April 2018. From 1 April 2020, the MEES applies to all existing tenancies, not just new ones or renewals.

After a consultation in December 2020, the government announced new tenancies would need a minimum EPC rating of C from 2025, followed by all rental properties from 2028.

The penalty for not having a valid EPC would have been raised from £5,000 to £30,000 from 2025.

However, in September 2023, the government abandoned these proposals.

These proposals would have made homes more energy efficient and reduced carbon emissions to help the government reach its net-zero target by 2050.

How long does an EPC last? 

An EPC is valid for 10 years, although when it runs out, you only need to get a new one if you’re setting up a new tenancy agreement or selling your property.

Currently, there is no automatic requirement for a new EPC to be commissioned. 

What about tenants’ rights?  

As a landlord, you must give tenants at least 24 hours written notice of a visit from an assessor.

Most tenants will be happy about an energy performance assessment as it’s a legal requirement, and a property with a good energy performance rating will be more cost-efficient and comfortable to live in. 

Are tenants entitled to a copy of the EPC? 

An EPC is not just about meeting guidelines — it’s fundamentally about quality of life and sustainability.

These concerns are naturally important to tenants too. As a tenant, you are entitled to a copy of your home’s EPC and must be provided with one when you move in.

If you want to find your property’s EPC rating, simply go to the government’s Energy Performance of Buildings Register, type in your postcode and click on your address. 

What are the likely costs, and are improvements tax deductible? 

It’s difficult to put a precise figure on the cost of bringing your property up to the required rating if there is work to be done.

According to Habito, it could cost up to £3,653 to bring a property rated D up to C if it's under 55m².

Unfortunately, improvements on property intended to boost your EPC rating are classed as capital expenditure and not repairs and maintenance.

So, this means they cannot be written off against profits to reduce your tax bill. 

Would the scrapped rules have impacted the rental market? 

Some private sector landlords may have been put off by the increasing level of investment required to gain a valid EPC before the proposals were scrapped by the government.

The situation may not have been helped by the relative confusion surrounding financial support.

Some energy grants may be available from the government or certain energy suppliers, which are worth exploring.

The abandoned proposals could have resulted in more landlords exiting the rental market, less choice for tenants and higher rental prices.

That said, rental prices have risen rapidly over the last few years.

Are there any EPC exemptions? 

It’s possible that your property is exempt from the MEES and EPC requirements.

Here’s a list of the main exemptions: 

• Listed or protected buildings that would be compromised by improvements.
• Temporary buildings that will be used for up to two years.
• Some workshops and industrial sites.
• Places of worship.
• Detached buildings with floor space of 50 metres or less
• Buildings that are due to be demolished 

Period properties can be more difficult and expensive to retrofit and bring up to the required standard, which has been acknowledged.

What should you do now?  

While major EPC proposals were abandoned by the government in 2023, it's worth staying updated in case any new proposals emerge.

If you have properties with older EPCs, it's always worth considering if they need to be renewed. You may want to review existing properties, too.

There are a number of online tools you can use to give you an idea of potential upgrades and costs, based on similar properties in your area.  

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