The Government has confirmed that privately rented homes in England will need to reach EPC C (up from the current minimum of EPC E) by 1 October 2030, or a valid exemption will need to be registered. A proposed earlier trigger for new tenancies in 2028 has been dropped, meaning there is now one compliance date for all landlords regardless of whether they are granting a new tenancy or letting to a sitting tenant.
The announcements sit alongside the Government’s wider Warm Homes Plan, which frames the policy as part of a longer-term drive to improve housing energy efficiency and support net zero objectives.
The spending cap is reduced and linked to property value
A key change for landlords is the reduction in the proposed cost cap. The maximum amount landlords will be expected to spend to reach the required standard has been lowered from £15,000 to £10,000 per property.
The Government also plans to reduce the cap where £10,000 would represent 10% or more of a property’s value, with further references to incremental reductions for lower-value homes (including properties valued under £100,000).
In practical terms, this means the compliance requirement is now paired with stronger protections against disproportionately high retrofit costs for landlords with low-value stock or harder-to-treat properties.
A “fabric first” retrofit approach is being encouraged
The Government has indicated it wants landlords to prioritise improvements to the building itself before moving to more complex measures. This “fabric first” approach typically means starting with measures such as insulation and glazing upgrades, then considering technologies such as solar generation or battery storage if required to reach EPC C.
This sequencing matters because it aligns investment with the measures most likely to reduce heat loss and improve comfort, while also helping landlords avoid spending on higher-cost technologies where basic efficiency measures have not been addressed.
Recent improvements will count toward the cap
Landlords are being encouraged to start work earlier, with the announcements indicating that improvements made from October 2025 will count towards the cost cap applied at the point of compliance. This is intended to recognise early investment rather than penalise landlords who act ahead of the formal deadline.
Separately, the Government has reiterated that landlords will continue to have access to existing support such as Boiler Upgrade Scheme grants.
EPC validity and what this may mean for timing decisions
The announcements and associated commentary also reinforce a key planning point: current EPCs remain valid for 10 years. In effect, where a property achieves EPC C (or above), that certificate can provide a decade of compliance cover, and policy proposals indicate that when new EPC formats are introduced, existing certificates will remain valid until the end of their current 10-year life.
That said, the Government has also indicated it is still working through how EPC rules might interact with PRS Minimum Energy Efficiency Standards over time, including whether there should be a requirement to obtain a new EPC when an old one expires for all privately rented homes.
EPC reform is coming, with multiple new metrics proposed
Alongside the MEES announcements, the Government has confirmed it is progressing reforms to how EPCs are presented and, longer-term, what they are based on. In what it describes as “a partial response” to its consultation, it has said that EPCs will, over time, be built around four elements:
- Energy cost.
- Fabric performance.
- Heating system.
- Smart readiness.
The Government’s stated rationale is: “The separate metrics will provide clearer and more useful information to consumers, whilst enabling government to be more targeted in addressing issues such as fuel poverty and net zero, in a way that is not possible currently.”
It has also indicated it will introduce “a secondary energy demand metric” based on delivered energy, and retain a secondary carbon-based metric, so certificates give a clearer view of modelled usage and emissions rather than relying on a single headline indicator.
Funding support is signalled, but detail is limited so far
The Warm Homes Plan references a broader investment package and points to government-backed zero and low-interest loans, including proposals intended to support measures such as rooftop solar. However, the Government has not yet set out the full mechanics of how private landlords will access these products at scale.
It has indicated further detail will follow after engagement with finance and consumer groups, and has also stated “We will launch a Call for Evidence early in 2026 to identify where else in the market the plan can deliver the greatest impact, for example in supporting private and social landlords, investors or supply chains, alongside homeowners.”
Sector reaction highlights relief on timing, but delivery risks remain
Landlord groups have broadly welcomed the removal of the 2028 trigger for new tenancies and the lower cost cap, while warning that delivering EPC C across the PRS remains a major operational challenge.
NRLA chief executive Ben Beadle said the revised direction reflects the risks of moving too fast “There is, however, still a mammoth task ahead.
“There are currently 2.5 million rental homes in England that will require improvements to meet EPC C or above – and a shortfall of skilled tradespeople that is estimated to reach a quarter of a million by 2030.”
Propertymark has also stressed that landlords need workable implementation and clearer funding certainty, particularly for older and complex stock. Timothy Douglas, head of policy and campaigns at Propertymark, said: “Landlords are being asked to deliver, in many cases, substantial and costly upgrades to reach EPC C by 2030, yet this is being imposed without clear, long-term funding commitments, realistic delivery timescales, or sufficient flexibility for older, complex, and hard-to-treat properties.
“A phased and realistic approach would allow landlords to maintain the Decent Homes Standard, manage costs effectively, and contribute meaningfully to the UK Government’s ambition to achieve net zero by 2050.
“Without certainty, genuine flexibility, and practical financial support, there is a serious risk that both residential and commercial landlords will withdraw properties from the market.”