Current EPC Requirements
Under the Minimum Energy Efficiency Standards (MEES) regulations, it is illegal to let a property in England or Wales with an EPC rating below E. This applies to new tenancies and renewals since April 2018, and has applied to all existing tenancies since April 2020.
An EPC is valid for 10 years and rates the property's energy efficiency on a scale from A (most efficient) to G (least efficient). Landlords must provide a copy of the EPC to prospective tenants before they sign a tenancy agreement and must not let a property that falls below the minimum standard.
Proposed Changes to EPC C
The government has proposed raising the minimum EPC requirement for rental properties to C. While the timeline has been subject to delays and consultations, the direction of travel is clear — landlords will eventually need to bring all rental properties up to at least a C rating.
This will require significant investment for many landlords, particularly those with older properties. Common improvements needed include better insulation, double or triple glazing, more efficient heating systems, and potentially renewable energy installations. Starting to plan and budget for these improvements now is advisable, even if the final deadline has not been confirmed.
How to Improve Your EPC Rating
The most cost-effective improvements for boosting an EPC rating include loft insulation (can improve rating by one to two bands), cavity wall insulation (one to two bands), upgrading to a more efficient boiler, installing double glazing, and fitting low-energy lighting throughout.
More substantial improvements such as external wall insulation, underfloor insulation, and solar panels can make a significant difference but involve higher costs. Your EPC report includes a list of recommended improvements ranked by cost-effectiveness, which is a good starting point for planning upgrades.
Exemptions and Penalties
Some properties are exempt from MEES regulations if all cost-effective improvements have been made and the rating still falls below E, or if a required improvement would reduce the property's value by more than 5%. Exemptions must be registered on the PRS Exemptions Register and are valid for five years.
Penalties for letting a non-compliant property can be substantial — up to £5,000 per property per breach. Local authorities are responsible for enforcement, and the consequences extend beyond fines: some mortgage lenders will not offer BTL products on properties without a valid, compliant EPC.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual rate available will depend on your circumstances. Think carefully before securing other debts against your home.