Government defends EPC standards claiming they help landlords and tenants

Government Reaffirms EPC C Deadline for Private Rented Sector

The UK government has reiterated its commitment to requiring all private rented homes in England and Wales to achieve an Energy Performance Certificate (EPC) rating of C by 2030. This policy aims to improve energy efficiency, reduce heating costs, and provide warmer homes for tenants in the private rented sector.

The announcement follows a written parliamentary question from Plaid Cymru MP Llinos Medi, who sought clarity on the impact of lowering the landlord cost cap and introducing exemptions for low property values in Wales. The government responded by emphasising that the standards are designed to be proportional and considerate of landlords’ financial burdens.

Balancing Costs and Benefits for Landlords and Tenants

Martin McCluskey, Minister for Energy Consumers, addressed concerns raised by MPs, stating:
“The government’s response to the consultation on increasing the minimum energy efficiency standard for private rented homes was accompanied by the Department’s Impact Assessment. The assessment provides an estimated impact of the final policy based on a range of data available, including HM Land Registry and property price data available for Wales.”

He added that the measures are intended to manage the burden placed on landlords and minimise disruption to the rental market, while still delivering improved, warmer, and more affordable homes for tenants.

Cost Caps and Financial Support Measures

Under the government’s plans, landlords will have the option to choose between smart or heat metrics to demonstrate compliance with the EPC C target. Importantly, the cap on the amount landlords are expected to invest in energy efficiency improvements will be reduced from £15,000 to £10,000.

This cost cap will be further lowered if £10,000 represents 10% or more of a property’s value, providing additional protection for landlords of lower-valued properties. Additionally, any energy-efficiency works carried out since October 2025 will count towards this cap, recognising prior investments.

To assist landlords in meeting these standards, the government will offer a range of financial support options, including grants through the Boiler Upgrade Scheme (BUS).

Implications for UK Landlords and Agents

Landlords in England and Wales should begin planning for the EPC C compliance deadline in 2030, considering the financial limits and available support. The reduced cost cap and exemptions for low-value properties aim to ease the financial impact, but proactive engagement with energy efficiency improvements will be essential.

Letting agents and property managers will need to advise landlords on compliance options and help tenants understand the benefits of warmer, more energy-efficient homes. The government’s approach attempts to balance environmental goals with practical considerations for the private rented sector.

Looking Ahead

The government’s stance indicates a continued focus on improving energy efficiency in the private rented sector while managing costs for landlords. The phased approach and financial support mechanisms reflect an attempt to deliver policy objectives without undue hardship.

Suggested internal link anchors

• Energy Performance Certificate (EPC)
• Private rented sector regulations
• Landlord cost cap
• Minimum energy efficiency standards
• Boiler Upgrade Scheme (BUS)
• Energy efficiency improvements
• Landlord financial support
• Rental market impact
• Welsh property regulations
• Smart and heat metrics

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/