## Understanding Energy Performance Certificates (EPCs)

An Energy Performance Certificate (EPC) provides an energy efficiency rating for a property, ranging from A (most efficient) to G (least efficient). It assesses two key factors: the cost of running the property—including heating, lighting, and hot water—and the environmental impact measured by carbon dioxide emissions. The certificate evaluates the building’s fabric, such as insulation and glazing, alongside heating systems and lighting.

Landlords must arrange for an accredited energy assessor to inspect the property and issue the EPC. The cost of obtaining the certificate is the landlord’s responsibility and cannot be passed on to tenants. A copy of the EPC must be provided free of charge to prospective tenants as soon as they express interest.

## Current EPC Compliance Requirements

Since 2018, the Minimum Energy Efficiency Standard (MEES) has required all rental properties in England and Wales to have an EPC rating of at least E. Properties rated F or G cannot be let unless a valid exemption applies.

EPCs remain valid for ten years. Landlords do not need to renew the certificate during an ongoing tenancy unless the tenancy ends, the EPC expires, or energy efficiency improvements have been made that could improve the rating.

Regarding Houses in Multiple Occupation (HMOs) or individual room lets, self-contained flats or houses always require an EPC. However, individual rooms let with shared facilities generally do not require separate EPCs, though the building as a whole will need one if sold or let as a single unit.

## Upcoming Changes to EPC Rules

The government’s Warm Homes Plan, effective from 2026, raises the minimum EPC standard for all rental properties in England and Wales to Band C by 1 October 2030. This replaces previous phased deadlines and applies universally, with no exemptions based on tenancy start dates.

To assist landlords, the government has capped required upgrade costs at £10,000 per property, with a lower cap for homes valued under £100,000. Failure to meet the new standards can result in fines up to £30,000 per property, a significant increase from the current maximum of £5,000.

Landlords should review the new dual-metric standards and prepare for compliance well in advance of the 2030 deadline.

## Exemptions and When EPCs Are Not Required

Landlords can apply for exemptions if their property cannot be improved to meet the minimum EPC rating without excessive cost or impracticality. Common exemptions include ‘high cost’, ‘7 year payback’, ‘all improvements made’, and ‘wall insulation’ among others.

Registering for an exemption is free but requires evidence supporting the claim. Properties with upgrade costs exceeding £3,500 may qualify for exemption under current regulations.

## Enforcement and Financial Support

Local authorities can currently fine landlords up to £5,000 for failing to have a valid EPC. This penalty will increase to £30,000 per property under the new rules from 2030.

Importantly, landlords cannot serve a Section 21 notice (no-fault eviction) if they did not provide a valid EPC at the start of the tenancy, potentially restricting their ability to regain possession.

To support landlords with upgrade costs, several government schemes are available in 2026:

– **Warm Homes: Local Grant** – Offers full funding for the first property and 50% contribution for others if tenants are low income or in designated postcodes.
– **Boiler Upgrade Scheme (BUS)** – Provides a £7,500 grant to replace fossil fuel boilers with low-carbon heat pumps, which does not count towards the £10,000 cost cap.
– **ECO4 and GBIS** – Focus on insulation and heating improvements for households at risk of fuel poverty, running until March 2026.
– **0% VAT on energy-saving materials** – Zero VAT applies until March 2027 on items like loft insulation and heat pumps, reducing upfront costs.

Landlords are also encouraged to contact their local councils, many of which offer additional funding schemes to improve local housing stock.

## What This Means for Landlords

Landlords must ensure their properties meet current EPC requirements and prepare for the 2030 Band C standard. Early action can prevent costly fines and legal complications, including eviction restrictions. Taking advantage of available grants and VAT relief can help manage upgrade expenses.

Regularly checking EPC validity and understanding exemption options are essential parts of maintaining compliance in the evolving regulatory landscape.

Suggested internal link anchors
– Energy Performance Certificates (EPCs)
– EPC rules for landlords
– Minimum Energy Efficiency Standard (MEES)
– Section 21 notice
– Warm Homes grant
– Boiler Upgrade Scheme (BUS)
– ECO4 and GBIS schemes
– EPC exemptions
– Energy efficiency improvements
– Landlord financial support

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/