The Government plans to require rental properties to achieve an EPC rating of C by 2030. However, making major investments now could potentially hinder your clients’ progress.

Government data shows that 52% of Private Rented Sector (PRS) properties currently fall below a C rating. Additionally, many property owners are increasingly worried about the potential costs of meeting the new regulations, which could run into thousands of pounds.

This blog will outline everything you need to know about the new EPC regulations and their impact on the rental market as well as provide guidance on how to advise your landlords, helping them stay compliant while saving money.

What Are the Proposed Changes to EPC Compliance?

PRS properties are currently expected to have a minimum EPC rating of E. However, the Government intends to raise this requirement to a minimum EPC rating of C by 2030.

This change aims to help over a million renters escape fuel poverty by ensuring homes are more energy-efficient, reducing heating costs, and supporting the UK’s goal of reaching net-zero carbon emissions by 2050.

While an exact implementation timeline has yet to be confirmed, the Government’s February 2025 consultation, Improving the Energy Performance of Privately Rented Homes in England and Wales, provided some clarity.

The proposal suggests that:

• From 2028, new tenancies must meet an EPC C rating.
• By 2030, all rental properties, regardless of tenancy status, must comply.

Additionally, the consultation outlines potential changes to the EPC grading system. It proposes that landlords prioritise improving a property’s fabric performance metric, which would require similar upgrades to those needed for achieving an EPC C rating under the current system. Further compliance would involve meeting standards based on either the heating system metric or the smart readiness metric.

However, the consultation also states that this is just one approach and invites feedback on alternative methods.

What the new EPC regulations mean for Landlords and Agents?

Impact on Landlords

The financial challenge of meeting the new EPC standards is significant. According to Government data, private rental properties will require an average investment of £6,864 to comply.

However, there is a clear gap between the cost of compliance and what landlords are willing to invest. Goodlord’s report indicates that most landlords are only prepared to spend around £2,400—far below the necessary amount.

This funding shortfall raises serious concerns. If landlords cannot afford or are unwilling to make the required upgrades, those with smaller portfolios may exit the market unless they receive adequate support.

Adding to the pressure, landlords who fail to meet the new EPC C requirement by 2030 could face fines of up to £30,000 or be banned from renting out their properties altogether.

Impact on Letting Agents

Letting agents also face significant challenges under the stricter EPC regulations. If compliance costs force landlords to leave the market, agents will see reduced property supply and increased competition, ultimately impacting revenue.

Additionally, the evolving regulations create opportunities for scammers. Bad actors may offer landlords so-called “quick fixes” that could compromise compliance.

To protect your clients, it’s crucial to provide well-researched, effective upgrade recommendations and offer guidance on navigating these changes successfully.

Guiding Your Landlords to Higher EPC Ratings

Now that we’ve explored the proposed changes and their potential impact, let’s focus on how you can help your landlords take a strategic and measured approach to improving their EPC ratings.

1. Advise them to get an EPC assessment

The first step in enhancing an EPC rating is conducting a thorough assessment. According to a recent epIMS survey, 95% of landlords are unaware of their property’s EPC rating.

Encourage landlords to check their exact EPC point score, not just the overall grade. Many properties are only a few points away from a higher rating, meaning they might not need costly upgrades to comply.

2. Encourage them to focus on Low-Cost Upgrades for now

With changes to the EPC rating system set to take effect in late 2026, landlords should prioritise small improvements until more details are confirmed.

Fortunately, there are several affordable upgrades that can significantly boost EPC scores:

• Adding 270mm of roof insulation can improve the rating by 10 to 15 points.
• Installing cavity wall insulation (costing £350–£500) can increase the score by 5 to 10 points.
• Fitting hot water cylinder insulation can raise the rating by 1.5 to 2 points.
• Switching to low-energy LED bulbs can add 1 to 2 points.

These cost-effective improvements can help landlords move up an EPC band without significant investment. Additionally, spreading out expenses over time makes compliance more manageable.

3. Consider Renewable Energy options

Integrating renewable energy sources can improve EPC ratings while also reducing a property’s carbon footprint.

For example:

• A 16-panel solar system can boost the EPC score by 10 points.
• A large wind turbine can add 7 points.

Although these upgrades require a higher initial investment, they can help future-proof properties and ensure long-term compliance with evolving EPC standards.

The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.

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