EPC 'C' Target and Improving Energy Efficiency: A Landlords Guide

The Energy Performance Certificate 'C' target is a key part of the UK government's strategy to improve the energy efficiency of residential rental properties. It requires landlords to ensure their properties meet a minimum EPC rating of 'C' by a specific deadline (the new target is the year 2030).

Currently, rental properties in England and Wales must have a minimum EPC rating of 'E' and properties rated 'F' or 'G' cannot be let unless they have a valid exemption.

Article updated: July 2026

Timeline for EPC 'C' Implementation

The energy target for rental homes in England and Wales has changed several times since 2017:

• In 2017/2018 the Conservative government set out to improve housing standards across England & Wales with the introduction of the domestic minimum energy efficiency standard (MEES).
• One target was by April 1st 2020 all domestic residential properties that were rented had to be a minimum of EPC rating 'E'. This date passed and this is a legal requirement for all rental properties and buy-to-let landlords.
• An additional target was also agreed by 2025 all new tenancies would need to be a minimum of EPC rating 'C' and by 2028 all existing tenancies would also need to achieve this standard.
• In 2023 Rishi Sunak scrapped this additional requirement and 2025 timeline.
• In 2024 a new Labour government confirmed its intention to achieve this goal again and mentioned its aims were for all rented properties to achieve this minimum EPC rating 'C' by 2030.
• In 2025 the government consulted on 2028 for new tenancies and 2030 for all of them. It has since confirmed the new standard with one date for every tenancy: 1 October 2030. It also raised the cost cap to £10,000, with exemptions valid for 10 years. The new standard comes in two steps. First the building itself, such as its insulation, has to meet a standard for how well it keeps heat in. Then the landlord picks one of two: a standard for the heating system, or a "smart readiness" standard.

This timeline represents a significant extension from previous proposals, giving landlords more time to make necessary improvements.

These changes highlight the evolving nature of energy efficiency policies and the importance for landlords to stay informed about the latest regulations. Meeting tighter EPC rules is one of the costs a landlord weighs when asking is buy-to-let worth it. With 1 October 2030 now confirmed, successive governments have kept this target in their sights, so it is worth planning ahead. Understanding the 18-year housing market cycle can help you plan energy improvements around market timing.

Governments are set on achieving a net-zero carbon future and landlords should plan ahead to achieve this as soon as possible to provide the best home for their tenants and maintain their assets.

Below we outline what current landlords and those looking to purchase buy to let investments should be considering.

Introduction to Energy Efficiency in Buy-to-Let Properties

For a buy-to-let, energy efficiency is measured by the property's Energy Performance Certificate rating. A rental has to meet a minimum rating before it can be let, unless it has a valid exemption, and tenants see the rating on every listing.

What is an EPC?

An Energy Performance Certificate (EPC) is a document that provides information about a property's energy use and typical energy costs. It also recommends ways to reduce energy use and save money.

The certificate provides the property with an energy efficiency rating from A (most efficient) to G (least efficient).

They have been a requirement since 2008.

An EPC is always the responsibility of the seller, vendor or landlord. A property cannot be legally sold or marketed without one.

They have a 10-year lifespan and should be renewed before this timeline if significant works have been carried out.

As an EPC is a snapshot in time, it is not always an accurate reflection of a property in its present condition.

If you bought using the seller's EPC and want to improve the property's energy efficiency, check the certificate's date first. If it is not recent, a new one can be worth paying for, because it shows the property as it is now.

How to get a copy of your energy performance certificate

You can find an energy performance certificate for any residential property in England, Wales and Northern Ireland via the government's certificate finder

You can find an energy performance certificate for any residential property in Scotland directly from the Scottish government's website Scottish EPC register.

Why does EPC compliance matter?

Energy performance certificates matter for several reasons:

1. Legal requirement: It is a legal obligation to be compliant and have a valid EPC when selling or renting a property.
2. Energy efficiency indication: They provide a clear indication of how energy efficient a property is.
3. Cost savings: Properties with better EPC ratings are generally cheaper to run.
4. Environmental impact: Improving EPC ratings helps reduce carbon emissions.
5. Property value: Higher EPC ratings can potentially increase property value
6. Appeal to tenants: Higher EPC ratings are attractive to tenants and since 2012 have been a requirement to show on property listings. It's easy to see a tenant choosing a property with an EPC of C compared to a property with an EPC of E, to benefit from lower running costs, with some savings being significant. Properties with better EPC ratings often achieve let agreed status faster due to increased tenant demand
7. Improved financing: Lenders are seeing the benefits of improved housing stock by offering new mortgage rates with 'green mortgages' on properties achieving high EPC ratings.

What EPC Targets are Government Currently Achieving

Of the EPCs issued for existing homes in England from April to June 2024, about 41.4% were rated C or above. The rest were rated D or below.

At the current rate of progress, 340,000 properties will need to be upgraded each year, according to this analysis from Propertymark, to hit the labour government target of all rented properties being a minimum EPC 'C' by 2030.

According to the latest data from the Ministry of Housing. The distribution of EPC ratings for existing dwellings in England were as follows in their latest assessment.

Existing Dwellings

- A: 0.4%

- B: 7%

- C: 34%

- D: 39%

- E: 16%

- F: 4%

- G: 0.6%

New Dwellings

- A: 22%

- B: 71%

- C: 5%

- D: 1%

- E: 0.3%

- F: 0.1%

- G: 0%

(Note: percentage changes have been calculated using unrounded figures; proportions may not add to 100%)

Understanding Energy Performance Certificates

How much do they cost?

The price of an EPC varies with where the property is and how big it is. As an example, if you are investing in Birmingham, an EPC for a standard 2-bedroom semi-detached house might cost £60-£80 when you book an assessor directly.

It can take 45 minutes to an hour to complete.

Larger properties, commercial properties or rural properties with more complex needs may take longer and cost more.

Where can you find an assessor?

You can find a domestic energy assessor to carry out your property assessment in England, Wales or Northern Ireland GOV.UK energy assessor search.

You can find an energy assessor to carry out your property assessment in Scotland Scottish EPC assessor search.

How are EPC's calculated and what do they measure?

EPCs are calculated based on a property's energy efficiency features, including:

1. Insulation (walls, roof, floor)
2. Heating systems and controls
3. Windows and glazing
4. Lighting
5. Renewable energy technologies (if any)

The calculation considers the property's size, layout, and construction materials. It measures:

• Energy use per square metre of floor area
• Carbon dioxide emissions
• Fuel costs

EPC ratings explained

EPC ratings range from A (most efficient) to G (least efficient). The certificate includes:

1. Current and potential energy efficiency rating
2. Current and potential environmental impact rating
3. Estimated energy costs
4. Recommendations for improvements
5. Estimated cost savings if improvements are made

Steps to Improve Your Property

Insulation (wall, roof, floor)

• Cavity wall insulation
• Solid wall insulation
• Loft insulation
• Floor insulation
• External wall insulation

Heating systems and controls

• Upgrading to a more efficient boiler (especially important for reducing costs for those investing in Student HMOs).
• Installing smart thermostats
• Improving heating controls

Windows and doors

• Double or triple glazing
• Draught-proofing

Lighting

• Switching to LED bulbs
• Installing motion sensors

Renewable energy technologies

• Solar panels
• Heat pumps
• Biomass boilers

How Landlords Can Prioritise Improvements

When looking at becoming a landlord and building a buy-to-let business around an energy efficient asset base:

1. Start with low-cost, high-impact measures like draught-proofing and LED lighting
2. Focus on insulation, which often provides the best return on investment
3. Consider the property's current EPC rating and target recommendations that will have the biggest impact on improving the rating by the highest number for your specific property
4. Check for any government funding support that may be available to help, like the 'help to heat funding grants' or the ECO scheme. With the planned oil boiler ban or gas boiler ban in mind, the boiler upgrade scheme is another one to look into.
5. Consider current and upcoming government guidelines that are connected like the 2035 gas boiler ban timeline.

Costs & Savings of Improvements

Typical costs for various improvement measures

The cost of each improvement depends on the measure you choose and the size of your house: the number of rooms, the number of walls and the total floor area. For properties built in the 1950s and 1960s housing, these improvements are particularly important due to their original construction methods.

Here are rough costs for six common measures:

• Loft insulation: £300 - £600
• Cavity wall insulation: £500 - £1,500
• Solid wall insulation: £5,000 - £18,000
• Double glazing: £3,000 - £7,000 for a whole house
• New boiler: £2,000 - £4,000
• Solar panels: £4,000 - £10,000

Potential energy savings

If you pay the energy bills, any saving goes straight into your average monthly profits from your rental property. The cost of the work still has to be set against that saving.

These improvements can also really help your tenant's yearly costs and help retain good tenants for years to come, improving your rental yield:

• Loft insulation can save up to £180 per year
• Cavity wall insulation can save up to £150 per year
• Upgrading to an A-rated boiler can save up to £300 per year

Return on investment varies but can be significant over time, especially for measures like insulation and LED lighting.

Potential Exemptions and How to Apply

There are four main situations where an exemption may be available:

1. The cost of improvements exceeds £3,500 (the current cap; this rises to £10,000 when the new EPC 'C' standard takes effect on 1 October 2030)
2. Necessary permissions (e.g., planning permission) cannot be obtained
3. The improvements would devalue the property by more than 5%
4. The property is listed as a historic building or in a conservation area with restrictions

Applying for an exemption involves two steps, and each exemption lasts for a set period:

1. Gather evidence supporting your exemption claim. There is a range of different exemptions from 'High cost' exemptions to 'Property devaluation' exemptions. You can see all of them and their criteria in the government's MEES landlord guidance.
2. Register the exemption on the PRS exemption register
3. Most exemptions currently last for 5 years, and some last for less. Under the new EPC 'C' standard from 1 October 2030, that 5-year period becomes 10 years.

Penalties for Non-Compliance

If your property doesn't meet the minimum EPC rating required by central government and you don't have a valid exemption, the penalties for non-compliance can be:

• You may face fines of thousands of pounds from your local council.
• You may be unable to let the property legally, and this can impact your buildings insurance
• Local authorities are responsible for enforcement and can issue compliance notices

How Landlords Can Plan Ahead

Planning ahead for the 2030 deadline takes eight steps, from checking the property's current EPC rating to keeping up with changes to the rules:

1. Check your property's current EPC rating
2. If below 'C', get an up-to-date EPC assessment with recommendations
3. Create an improvement plan, prioritising cost-effective measures to help reduce the impact of rising energy prices.
4. Research available funding and support
5. Start implementing improvements well ahead of the 2030 deadline
6. Keep records of all improvements and associated costs
7. If improvements aren't feasible, consider applying for an exemption
8. Stay informed about any changes to regulations or deadlines

By taking proactive steps now, you can ensure your property meets the government's future EPC 'C' targets and benefit from the improvements immediately for you and your tenants.

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