Proposals to raise minimum energy efficiency standards in the private rented sector have been on the table for several years. Earlier plans would have required landlords to spend up to £15,000 per property and meet an EPC rating of C by 2028 for new tenancies.
Following sustained consultation and industry pressure, the Government has now confirmed a revised and more pragmatic approach. While the long-term aim of improving energy efficiency remains, the timeline, spending expectations and supporting framework have been adjusted to reflect the realities facing landlords.
This update is particularly relevant for landlords planning ahead, reviewing portfolios, or considering future investment decisions.
EPC C Is Still the Target – but the Timeline Has Changed
The Government has confirmed that rented homes in England will still be expected to reach an EPC rating of C in the future. However, the previously proposed 2028 deadline for new tenancies has been removed.
Under the revised plans, all landlords will now have until 1 October 2030 to bring their properties up to EPC C or register a valid exemption. This applies regardless of whether the tenancy is new or existing.
This extension provides landlords with additional time to plan improvements sensibly, align works with natural maintenance cycles, and avoid unnecessary financial pressure.
The Spending Cap Has Been Reduced
One of the most significant changes is the reduction of the proposed spending cap. Rather than requiring landlords to spend up to £15,000 per property, the Government has confirmed a maximum investment cap of £10,000.
For lower-value properties, particularly those valued under £100,000, the cap may be reduced further. This recognises the disproportionate impact that higher upgrade costs could have on certain landlords and property types.
Crucially, any qualifying energy efficiency improvements made from October 2025 onwards will count towards this cap. This means landlords who have already invested in insulation, glazing or heating upgrades will not be penalised for acting early.
What Has Not Changed
It’s important to stress that, at present, the legal minimum energy efficiency standard remains EPC E. Landlords are not required to take immediate action unless they are currently letting a non-compliant property or are planning significant changes to a tenancy.
The revised proposals are about providing clarity and lead-in time, not imposing sudden new obligations.
A Fabric-First Approach and Government Support
The updated proposals sit within the Government’s wider Warm Homes Plan, which prioritises a fabric-first approach. This means improving the basic structure of a property – such as insulation, windows and draught proofing – before moving on to more complex or costly technologies.
Alongside this, the Government has indicated that low-interest loan options and other forms of support will be made available to help landlords fund improvements over time.
Any funding or loan support referenced by government will be subject to eligibility criteria and scheme availability at the time, which may change as policies are finalised.
EPC Validity Period Extended
Another notable change is the extension of EPC validity. EPCs will now be valid for 10 years, rather than five.
If a property achieves an EPC rating of C before October 2029, it will be treated as compliant for the full 10-year period, offering landlords long-term certainty and reducing administrative churn.
Exemptions and Proportionality
As with the current Minimum Energy Efficiency Standards, exemptions are expected to remain part of the framework for properties where improvements are not technically possible, proportionate, or financially viable.
These exemptions are evidence-based and time-limited, reinforcing the importance of proper documentation and professional advice rather than blanket assumptions.
What Landlords Should Be Doing Now
While enforcement remains the responsibility of local authorities, expectations around compliance and record-keeping are steadily tightening, making early awareness and planning increasingly important for landlords.
At this stage, landlords should consider:
- Reviewing current EPC ratings across their portfolio
- Factoring energy efficiency improvements into long-term maintenance plans
- Keeping records of any qualifying works already undertaken
- Avoiding rushed or unnecessary upgrades before final guidance is published
The Government’s full consultation on improving the energy performance of privately rented homes provides useful context on how EPC reform and future standards are being shaped:
Industry bodies such as National Residential Landlords Association have also published helpful summaries explaining how landlord feedback influenced the revised proposals:
How Fleming Lettings Supports Landlords
Energy efficiency reform is just one part of a rapidly changing regulatory landscape for landlords. At Fleming Lettings, we work with landlords to ensure properties remain compliant, marketable and financially sustainable – without overreacting to incomplete or evolving policy.
By keeping up to date with legislative changes and taking a measured, evidence-led approach, landlords can protect both their investments and their tenants, while avoiding unnecessary cost or disruption.
If you would like tailored guidance based on your property or portfolio, our team is always happy to advise.
FAQs
The revised proposals apply to all privately rented homes, regardless of whether the tenancy is new or existing. However, enforcement will not begin until the proposed 2030 deadline, giving landlords time to plan improvements or register exemptions where appropriate.
No. EPC compliance is enforced by local authorities, not centrally by government. Enforcement typically relies on inspections, complaints, or data-led checks rather than automatic penalties. However, record-keeping and evidence will be critical.
Yes. Landlords are not required to retain ownership of a property if it no longer fits their investment strategy. However, EPC requirements still apply while a property is being marketed or let, and poor EPC ratings can affect saleability and valuation.
The Government has stated that EPC reforms are intended to reduce tenant energy costs, not drive rent increases. However, landlords should consider affordability, local market conditions, and regulatory restrictions on rent increases when planning any upgrades.
Listed buildings are not automatically exempt. However, exemptions may apply where recommended improvements would unacceptably alter the building’s character or fabric. Evidence from a qualified professional is usually required.
If a property does not meet the required standard and no valid exemption is registered, landlords may face:
- Civil penalties issued by the local authority
- Restrictions on letting the property
- Enforcement action requiring compliance
Early planning significantly reduces these risks.
In many cases, yes. Premature upgrades without clear guidance may not count towards future compliance. Landlords should focus on essential maintenance, keep records of improvements, and wait for final EPC reform guidance before undertaking major works.
Legal responsibility sits with the landlord, but letting agents may have obligations around advertising compliant properties and advising clients correctly. This makes professional guidance increasingly important.
