As a landlord it’s important that you know the details to stay compliant when it comes to energy efficiency regulations now, and in the future.
The government is currently proposing that all privately rented properties in England and Wales achieve a minimum Energy Performance Certificate (EPC) rating of C by the year 2030, in a scheme that continues the drive for greener homes. However, proposals such as this have been changed before but whatever the situation, it pays to make sure you have the necessary insight into EPCs – and to understand how ‘green’ proofing your property could benefit you.
What is an EPC?
An Energy Performance Certificate – or EPC – is essentially an energy "report card" for a property. It is a document that evaluates how energy-efficient a building is, rating it on a scale from A (the gold standard) right down to G.
It also highlights specific areas where improvements could be made, the estimated cost and tells you how much you could potentially save on your yearly energy bills once the work is done. For landlords, having a valid EPC is a legal requirement when letting a property.
How is an EPC assessment carried out and what does it measure?
An EPC assessment is carried out by a qualified Domestic Energy Assessor (DEA) who visits the property in person. It’s quick; it usually takes around 30 to 40 minutes and involves a thorough look at the property’s key energy features.
During the visit, the assessor will examine:
- Insulation levels in walls, loft and roof
- Window glazing (single, double, or triple)
- Hot water and heating systems
- Lighting throughout the property
- Any renewable energy sources, such as solar panels
Currently, the rating is calculated using the Standard Assessment Procedure (SAP) methodology, which is based on the estimated cost of heating, lighting, and hot water in a property. Each property receives a SAP point score, which will then correlate to an EPC band. For example, 92 – 100 points will reward you with an EPC A band, while 1 – 20 points will be an EPC G band.
This current system however doesn’t prioritise energy efficiency and greener solutions, which is what has motivated the change by government in how homes’ energy efficiency is measured.
What are the benefits of upgrading your property?
The most obvious benefit you’ll see from upgrading as per EPC guidelines will be that your property will be more energy efficient. This is likely to see real time cost savings through lower energy costs.
Additionally, updating your property means it will become more attractive to prospective tenants as they see you care about your rental home and are happy to invest money into it, plus tenants will look for homes that are likely to cost them less through energy bills. This in turn can mean you have a higher rental potential for your property, meaning fewer void periods and a stronger return in investment.
To improve your property’s energy rating, we can refer you to Vibrant, who can help you find and install the best energy-saving products.
They can also advise, project manage and find Government energy grants to help you cover the cost of any upgrades or installation work you might want to undertake.
If you’d like to know more, ask your local branch for details.
What are the future proposals for EPCs?
It is proposed that all privately rented properties in England and Wales achieve a minimum EPC rating of C by 2030, a step up from the current minimum of E, which has been in place since April 2020.
With this would come a complete overhaul of how EPCs are assessed, moving from a single overall score to four performance metrics:
- Fabric performance – How well does the building retain heat, from insulation to windows.
- Heating system performance – The carbon impact and efficiency of the heating system.
- Smart readiness – The building’s capacity to support smart energy technologies such as solar panels.
- Energy cost – Shown as an estimated annual energy bill rather than a rating band, giving tenants a much clearer picture of what they will actually be paying.
The idea behind this is to shift the focus from cost to energy efficiency while also incentivising low-carbon solutions.
When will these EPC changes come into effect?
The changes are due to be rolled out in stages, which is helpful for planning purposes. While some future dates are being confirmed, here is the timeline as it currently stands:
- January 2026 – The government published its Warm Homes Plan, confirming the key pillars of the new EPC system.
- Second half of 2026 – The Home Energy Model (HEM) is introduced as the new assessment methodology, replacing the current SAP system as the new four-metric framework takes shape.
- October 2029 – The HEM becomes compulsory for all new EPC assessments. EPCs commissioned before this date will remain compliant until they expire.
- October 2030 – The provisional deadline by which all privately rented properties must achieve a minimum EPC rating of C.
How do I get a landlord’s EPC?
You will need to book an assessment with a qualified Domestic Energy Assessor. This is an additional service we can offer to customers, or it can be arranged through accredited energy assessment organizations.
Once complete, the certificate is automatically lodged on the national EPC register.
How long is an EPC valid for?
An EPC is valid for 10 years from the date it is issued. During that time, it can be used for multiple tenancies without needing to be renewed.
What is important to note is that the government has confirmed that EPCs commissioned before October 2029 will remain compliant until that certificate expires, even after the new-style EPCs are introduced.
What are the EPC requirements for landlords and rented homes in Scotland?
Since March 2022, all privately rented homes in Scotland must have an EPC rating between A and E. Since April 2022, all new tenancies now require a rating of D or above.
The Scottish Government has proposed new minimum energy efficiency standards for private landlords, asking all new tenancies to have an EPC rating of C by 2028, extending to all tenancies by 2033. Unlike in England and Wales, all historic buildings require an EPC before they’re allowed to be rented out.
In Scotland, as in England and Wales, EPCs last for 10 years. It’s illegal to rent a property to a new tenant without one, incurring a minimum fine of £500.
While the changes ahead are significant, they represent a genuine opportunity to create warmer, more energy-efficient homes that benefit everyone. The key is to start preparing now rather to ensure you’re ready ahead of time and can benefit from an energy-efficient home sooner rather than later.
We will keep a close eye on all legislation changes, including these proposals. If you want to know more about how our expertise can help you, do not hesitate to get in touch with your local branch. We are always happy to help.
