Beat the EPC C deadline: How landlords can get ahead
In October 2030, rules will come into force requiring all rental homes to have an Energy Performance Certificate (EPC) of C or above.
With just four years to go and over half of existing rental stock currently rated below that level, now is the time for landlords to start planning how they will bring their homes up to standard.
For many landlords, the key to doing this in the most affordable way will be through clear preparation.
The first step is to look at the EPC report you already have. Every certificate outlines a property’s current energy performance and recommended improvements. Understanding where your property sits and the measures required to increase its score is essential before making any upgrades.
Forward planning matters because over 2.5m rental homes in England currently fall below EPC C and if too many landlords delay action, demand for materials and tradespeople will surge, pushing up costs and making work harder to schedule.
Once you understand what changes are required, you need to prioritise the ones that will deliver the biggest gain in energy efficiency.
Thinking about the order in which work is carried out is also important. For example, it often makes sense to improve insulation before replacing a heating system. Once a property retains heat more effectively, the heating system can operate more efficiently, which may avoid unnecessary spending on a new boiler.
Landlords should also weigh up the potential EPC improvement against the financial cost of each measure. While replacing a boiler or installing new windows can help increase a property’s rating, these improvements can also be among the most expensive. Insulation upgrades and smaller efficiency improvements may deliver strong enough returns for a lower outlay.
For older housing stock, which makes up a large proportion of properties across our region, the situation can be more complex. In these cases, landlords should take a step back and assess the overall cost of bringing a property up to the required standard.
Under current proposals, there is a spending cap of £10,000 per property to reach EPC C, reduced from an earlier cap of £15,000. While the final details could change, landlords who spend up to the cap without achieving the required rating can claim for an exemption that is valid for 10 years.
This makes it particularly important for landlords with properties currently rated D or E to carefully review their EPC reports. If the recommendations include a combination of insulation upgrades, new windows and a replacement boiler, landlords should calculate the likely costs and decide whether the investment makes sense in the long term.
For some landlords, particularly where the cost of improvements outweighs the value of the asset, the decision may be to sell.
However, many landlords will find that reaching EPC C is achievable with a structured approach. Using natural breaks between tenancies can provide the ideal opportunity to carry out improvements with minimal disruption. Even when tenants remain in place, smaller upgrades such as insulation improvements or heating controls can often be completed relatively easily.
The landlords who will benefit most are those who act early and plan sensibly. By reviewing their portfolios, prioritising the most effective improvements and spreading upgrades over the next four years, reaching EPC C will be far more manageable, and more affordable.