Landlord's Energy Efficiency Rules For Rentals 2025

The UK government has confirmed its plans to tighten minimum energy efficiency standards for rental properties. 

By 2030, all privately rented homes in England and Wales will be required to have an Energy Performance Certificate (EPC) rating of at least ‘C’. This is a step up from the current minimum of ‘E’, which has been in place since 2020.

This is in line with the UK’s goal to reduce the carbon footprint of the UK’s housing stock, cut tenant energy bills, and edge closer towards the country’s net-zero targets. 

For landlords, the implications are real. Miss the mark, and you could face fines of up to £30,000 per property. Though there are also some opportunities to be seized.  

To help make sense of the new landlords energy efficiency rules, we’ve broken down the key updates, costs, and what steps to take next.

Key Takeaways

• Current EPC Requirements: As of April 2020, all rental properties in England and Wales must have a minimum Energy Performance Certificate (EPC) rating of 'E'.
• Proposed Changes: The government proposes raising the minimum EPC rating to 'C' by 2030 for all rental properties.
• Financial Implications: Landlords may need to invest between £6,100 and £6,800 per property to meet the proposed standards, with a maximum cap of £15,000.
• Penalties for Non-Compliance: Failure to comply with the proposed standards could result in fines of up to £30,000 per property.
• Government Support: Consultations and potential financial packages are being considered to assist landlords in meeting these standards.

Understanding EPC Ratings 

An Energy Performance Certificate (EPC) is a legal requirement for rental properties and gives your property an energy efficiency rating from A (most efficient) to G (least efficient).

The rating takes into account things like insulation, heating systems, ventilation, windows, and how efficient the appliances are. It also gives an estimate of the property's typical energy use and running costs. 

Only a qualified domestic energy assessor can carry out an EPC assessment. Once you've got one, it’s valid for 10 years—unless you make major upgrades that would change the rating.

EPCs aren’t just for ticking compliance boxes either—they’ve become an important selling point. A better rating can make your property stand out to tenants looking for lower bills and a warmer home. A more efficient home can be a big draw for prospective tenants, particularly as fuel prices continue to rise. 

EPC Legislative History & Changes

Since April 2020, all rental properties in England and Wales have needed to meet at least an EPC rating of ‘E’ before they can be legally let out.

This rule applies to both new and existing tenancies. If a property doesn’t hit that minimum, landlords can’t legally market or rent it out—unless they’ve registered an exemption on the PRS Exemptions Register.

If your property’s below an ‘E’, you’ll need to make some improvements to bring it up to scratch. This might mean upgrading insulation, fitting double glazing, installing a more efficient boiler, or switching to low-energy lighting throughout.

While ‘E’ has been the legal minimum for a few years now, landlords should be looking ahead. The government is planning to raise the bar to a ‘C’ rating by 2030, so it’s worth starting those upgrades sooner rather than later.

With stricter landlords energy efficiency rules on the horizon, starting improvements early can help landlords stay ahead of the curve and avoid compliance issues later on.

Proposed Changes to Landlord Energy Efficiency Standards

The UK government plans to raise the minimum EPC requirement for rental properties from ‘E’ to ‘C’ by 2030. This forms part of the Warm Homes Plan, which aims to:

• Reduce carbon emissions
• Improve energy security
• Lower household energy bills

The plan to raise EPC requirements is a big part of the government’s push to hit net-zero carbon targets by 2050.

At first, the aim was to bring in the ‘C’ rating rule by 2025 for new tenancies and 2028 for everyone else. But with rising costs and delays in getting things in place, the target’s now been pushed back. The current goal is to have all rental homes up to a ‘C’ by 2030.

To meet this, landlords will need to make energy efficiency improvements—but only up to a limit. The government suggested a spending cap of £10,000 to £15,000 per property, so you won’t be expected to throw unlimited funds at it.

If you hit that cap and still can’t get your property to a ‘C’, you might be able to register for an exemption, as long as you’ve got proof of what’s been spent.

There’s also a consultation underway, giving landlords, agents, and tenants a chance to have their say on how the rules should be rolled out, what support might be needed, and how enforcement should work.

And while there’s no blanket funding yet, the government is expected to introduce grants, loans, or tax breaks to help landlords with the upgrades.

It’s worth starting sooner rather than later—spreading the cost over time is easier than dealing with last-minute price hikes, long wait times for tradespeople, or missing out on future support.

Related: 11 Questions Landlords Have About Energy Performance Certificates

Energy Efficiency Rules Financial Implications for Landlords

The move to improve landlords' energy efficiency ratings—specifically the shift from a minimum EPC rating of ‘E’ to ‘C’—comes with significant cost considerations. 

Estimates suggest that bringing a rental property up to a ‘C’ rating will cost landlords between £6,100 and £6,800 per property, although this can vary widely depending on the property’s age, type, and current energy performance.

Cost Cap and Exemptions

To stop costs from getting out of hand, the government has suggested a cap of £15,000 per property. That means landlords won’t be expected to spend more than this to get their property up to the minimum EPC rating.

If you’ve done all you can within that budget and the property still doesn’t hit a ‘C’ rating, you might be able to apply for an exemption through the PRS Exemptions Register.

There’s also talk of a lower affordability cap—possibly £10,000—which could apply to some landlords, depending on things like:

• Low rental yields
• Properties in lower council tax bands
• Regional differences in rental income

In these cases, landlords may qualify for the lower cap and still be considered compliant if they can demonstrate that they have spent up to that amount on eligible improvements.

What Kind of Costs Are Involved?

Typical upgrades needed to improve a property’s EPC rating might include:

• Insulation improvements – Cavity wall insulation, loft insulation, or underfloor insulation
• Window replacements – Upgrading from single to double glazing
• Boiler upgrades – Installing modern condensing boilers or renewable heating options
• LED lighting – Replacing traditional bulbs with low-energy alternatives
• Draught-proofing and ventilation – Simple measures that can make a big difference
• Smart heating controls – Programmable thermostats and zoning system.

While some of these improvements are relatively inexpensive, others—like heating system upgrades or wall insulation—can carry a higher price tag. 

Related: How To Improve Your EPC Rating

Funding and Support

Although no universal grant scheme has been formally rolled out yet, the government has signalled an interest in supporting landlords through financial packages, green finance options, and retrofit loans aimed at easing the cost of meeting landlord energy efficiency rules.

Existing schemes such as Home Upgrade Grants (HUGs) and local authority-funded initiatives may also be available on a case-by-case basis.

It’s worth checking with your local council or energy efficiency organisations for region-specific support.

Track Your EPCs, Plan Upgrades, and Stay Compliant with Landlord Studio

Managing property improvements and staying on top of changing rules doesn’t have to be complicated. 

With Landlord Studio, you can store EPCs and safety certificates securely, track upgrade costs, set reminders for compliance deadlines, and log all communication and maintenance work in one place. 

It’s everything you need to stay organised—and avoid fines—as the 2030 deadline approaches.

Create your free Landlord Studio account today.

Penalties for Non-Compliance

Landlords who don’t meet the new standards could be hit with fines of up to £30,000 per property. 

Local councils are in charge of enforcement and can hand out civil penalties if they find a property isn’t up to scratch. 

In some cases, landlords might not be allowed to rent out a property at all until it’s been upgraded and the right paperwork is in place.

So this certainly isn’t a change that can be ignored. 

Impact on the Rental Market

The new energy efficiency rules are set to change things up across the rental market. 

Landlords being required by law to spend money upgrading their properties is likely to lead to higher rents in some areas as they try to recoup their costs.

In other cases, especially where margins are already tight, some landlords might choose to sell up, which could mean fewer rental properties on the market.

But there are upsides too. More energy-efficient homes are becoming increasingly popular with tenants. With energy bills still high, renters are actively looking for places that are cheaper to heat and run. 

So, homes with an EPC rating of C or above could become more attractive, rent out quicker, and even go for slightly higher monthly rent, especially in busy markets.

In areas like London, Manchester, and other big towns, which are already some of the best places to invest in real estate, we’re already seeing listings highlighting EPC ratings. It’s becoming a real selling point, and it could give landlords who’ve invested in upgrades an edge.

Steps To Take To Achieve Compliance 

If you’re aiming to meet the updated landlord energy efficiency rules, here are a few practical steps to help you get there:

1. Check your current EPC

Start by getting an up-to-date EPC so you know exactly where your property stands.

2. Work out what needs improving

Chat with an energy assessor to figure out which upgrades will have the biggest impact.

3. Make a plan and get the work done

Once you know what’s needed, map out a timeline and budget for the improvements, then get them booked in.

4. Keep up with the latest updates

Stay in the loop on government guidance and look out for any grants or support schemes that could help cover the costs.

Final Thoughts on the Landlord's Energy Efficiency Rules for 2025

There’s no question that the new energy efficiency rules will bring a mix of challenges, but there are also some meaningful opportunities. 

Taking action now gives you the chance to future-proof your property, making it more appealing to tenants while cutting down on your running costs. 

If you’re worried about the changes, the best thing you can do is be proactive, stay informed, and make use of support where available to manage the changes and avoid a last-minute scramble.

While making these changes, Landlord Studio can help you stay proactive, from tracking EPC renewals and setting up recurring reminders for inspections, to tracking improvement costs and securely storing all your compliance documents. 

Create your free Landlord Studio account today to streamline your property management and compliance.