The Current Rules
Since April 2020, it has been illegal to let a domestic property in England and Wales with an EPC rating below E. This applies to all new tenancies and renewals, as well as existing tenancies.
As a landlord, you must:
- Have a valid EPC (less than 10 years old) before marketing a property
- Provide a copy to prospective tenants free of charge
- Ensure the property meets the Minimum Energy Efficiency Standards (MEES) — currently a minimum of Band E
What Are the Penalties?
Non-compliance carries significant financial penalties:
| Breach | Penalty |
|---|---|
| Letting a sub-standard property (less than 3 months) | Up to £2,000 |
| Letting a sub-standard property (3+ months) | Up to £4,000 |
| Providing false or misleading information on the PRS Exemptions Register | Up to £1,000 |
| Failing to comply with a compliance notice | Up to £2,000 |
Penalties are per property and can be stacked — meaning a single property could result in fines of up to £5,000.
Proposed Changes: Band C by 2030
The government has signalled its intention to raise the minimum EPC requirement for rental properties to Band C. While the exact timeline has shifted, landlords should be preparing now. Key points:
- New tenancies are expected to require Band C first, with existing tenancies following
- There will likely be a spending cap on required improvements (previously proposed at £10,000)
- Exemptions may be available where Band C is not cost-effective to achieve
Even if the Band C deadline shifts again, the direction of travel is clear: higher energy efficiency standards for rental properties are coming.
How to Improve Your Rental Property's EPC
The most cost-effective improvements for landlords typically include:
- Loft insulation (£300–£500) — often the single biggest improvement
- Cavity wall insulation (£500–£1,500) — major impact on solid-walled properties
- Upgrading the boiler (£1,500–£3,000) — if your boiler is over 15 years old
- Smart heating controls (£150–£300) — easy win for a better rating
- LED lighting throughout (£50–£100) — surprisingly effective on the EPC
- Double glazing (£3,000–£7,000) — significant but costly improvement
Start with the low-cost measures first. Many landlords find that loft insulation plus a boiler upgrade is enough to jump from an E or D to a solid C.
Exemptions
You may be exempt from the MEES requirements if:
- All cost-effective improvements have been made and the property still doesn't reach Band E
- A required improvement would reduce the property's value by more than 5%
- You cannot obtain necessary third-party consent (e.g., planning permission, freeholder consent)
Exemptions must be registered on the PRS Exemptions Register and are valid for 5 years.
Stay Ahead of the Curve
Don't wait for the rules to change. Getting an up-to-date EPC now tells you exactly where you stand and what improvements will give the best return on investment.
