New EPC Regulations for Landlords 2024

There are numerous rules and regulations for landlords in the UK designed to create safe, hassle-free tenancies. While there’s no way to prevent every issue along the way, these guidelines aim to establish a fair and reasonable arrangement for both landlords and tenants.

One such safety measure is EPC requirements. All landlords have to obtain an up-to-date EPC, or Energy Performance Certificate, before letting their property. This is a legal document that provides a rating on how energy efficient a property is. Ratings range from A to G, with A being the most efficient and G being the least. 

This information is made public and available for potential tenants to view. In addition to the grade, an EPC also includes the average cost of heating and lighting, possible areas of improvement (with cost-effective ways to make these improvements), and carbon dioxide emissions.  

As the environment and property market change and evolve, so do EPC regulations. In this article, you’ll discover the new EPC regulations for landlords in 2024, which is beneficial information for property owners and tenants alike. 

More About Current and Future EPC Regulations

The last time EPC requirements changed was in 2018 when the minimum energy rating of ‘E’ or above was required for all new tenancies. These EPC regulations apply to all tenancies – both old and new.

In 2021, the Minimum Energy Efficiency Standards (MEES) were also announced, reporting more changes to come starting in 2025 for new rentals and 2028 for all existing rentals. These new requirements would affect properties in England and Wales, where a new EPC rating of ‘C’ or better would be the legal standard. 

MEES oversees various types of rental properties, including:

• A regulated rent tenancy
• Assured tenancies 
• A domestic agricultural tenancy 
• Any rental property that’s been marketed for sale or let within the last decade (in most cases)

While many of these changes are still in the planning stages, the ultimate goal of the MEES is to create more energy-efficient home options in the market. This is just one step in the Government’s long-term initiative to have net-zero carbon emissions by the year 2050. 

Below you’ll find a timeline of events in regard to these EPC changes and updates, plus specific requirements that all landlords need to meet. 

Current EPC Requirements for Landlords and Rental Properties

All rental properties in England and Wales were required to obtain an EPC starting in October 2008. Ten years later – on April 1, 2018 – the MEES was created, and the standards changed. Beginning in 2018, the MEES required all new tenancies to hold an EPC rating of ‘E’ or better. 

Two years later – on April 1, 2020 – the MEES extended the ‘E’ rating requirement to all existing tenancies, not just new ones or renewals. This means that if a rental property doesn’t have an EPC rating of at least an ‘E’, it’s illegal to let. 

Some exemptions and extenuating circumstances allow landlords to let properties with an EPC rating below ‘E’.” If a landlord can demonstrate that the building or rental property is listed or officially protected and that the minimum EPC requirement would fundamentally alter it, they may be exempt. The same is true for temporary buildings that will be in use for 2 years or less. 

Suppose your property is not a regulated, assured, or domestic agricultural tenancy and also hasn’t been marketed, sold, or modified within the last decade. In that case, you may not need to improve your energy rating. These rental properties can still be let with a rating below ‘E’ (F or G). 

Other exempt properties include:

• Buildings that are scheduled to be demolished
• Places of worship
• Select industrial sites or workshops
• Detached buildings that have a floor space of 50 meters or less 

To avoid any legal fines or trouble, check with your local council to confirm your specific property qualifies under these exemptions.

When Will the New EPC Regulations Take Effect?

As previously mentioned, different requirements and regulations have been proposed to extend as far as 2028. These gradual changes are designed to give existing and new landlords ample time to comply. Not all buildings will reach an ‘E’ or ‘C’ rating from the start. Landlords will need time, resources, and information to make the appropriate upgrades.

The original proposal stated that these new regulations would apply to all new tenancies starting in 2025, followed by all existing tenancies in 2028. But, in March 2023, this proposed deadline was extended to 2028 to include all tenancies – new or old. The Government also proposed changes to the penalty for noncompliance. These fines would increase from £5,000 to £30,000 starting in 2028.

In September 2023, another announcement was made, and the Government withdrew its petition to enforce these new rating requirements. As of this date, the minimum energy rating for rentals remains at ‘E.’ Any upgrades or changes remain to be seen or confirmed.

As relieved as most landlords were to see these strict standards dropped, others were frustrated by the abrupt change in the Government’s requirements. Why? According to Shawbrook Bank, nearly 80% of all property owners were prepared to meet the original 2025 deadline and EPC requirements. Of those, 30% had already upgraded their properties to between an A and C rating, while the other 50% had improvement plans in place.

But it wasn’t just time these responsible and efficient landlords had invested. Many of them also made significant financial investments in upgrading their properties. The average landlord spent £25,148 per property and as much as £37,164 for properties in London. But all is not lost! Although the stricter EPC regulations have been dropped, for now, it’s believed that the Government will still require an EPC rating above ‘E’ in the foreseeable future. Any improvements that were already made will still be applicable when this time comes. 

Recommended EPC Improvements 

As of this writing, landlords aren’t legally required to improve the energy ratings of their properties beyond the minimum mandates. With that being said, the Government still strongly encourages landlords to make upgrades “where possible” to increase the energy efficiency of their properties while also supporting the Government’s efforts to be “net zero” by 2050. 

One way the Government is supporting these efforts is by increasing the Boiler Upgrade Scheme grant. This allows landlords to switch from gas boilers to greener, more efficient alternatives. Landlords are always encouraged to make continued changes that would reduce long-term costs, improve the livability and comfort of tenants, and increase overall efficiency. 

As with any legal requirement, landlords are tasked with monitoring any potential upgrades, changes, or updates to the EPC requirements that may occur in the future.

How to Get an EPC 

All rental properties in the UK need an EPC to accept tenants legally. In order to obtain an EPC, a Domestic Energy Assessor will visit the property and conduct an Energy Assessment Survey. This includes both an internal and external inspection to determine how energy-efficient the building is. The report also offers recommendations on how to increase efficiency and what improvements should be made. This is valuable information for both new and existing landlords looking to let their properties. 

During the survey, you can expect the assessor to focus on several areas and features of the property. These include, but aren’t limited to:

• Insulation
• Windows
• Roofs and walls
• Lighting
• Renewable energy devices like wind turbines or solar panels 
• Fireplaces
• Building measurements 
• What year the property was built
• Any past or recent upgrades or renovations 

Following the inspection, the assessor will create an EPC and give the property a grade for how energy-efficient it is. Based on the new EPC regulations for landlords in 2024, any property scoring below an ‘E’ will need to make the necessary improvements or apply for an exemption. 

Once the report is complete, you’ll receive a digital copy of your EPC that you can print and display on your property. You should also keep a paper record on hand in the event you need to prove your compliance. 

Different assessors charge different amounts for an EPC survey, inspection, and report. Shop around before choosing an assessor. Make sure that you use a reputable professional or company that is legally licensed to inspect and rate your property.

More FAQ About EPC Regulations for Landlords in 2024

There are still numerous questions surrounding these new EPC regulations for landlords, including what are the penalties for noncompliance, how often you have to renew, and do tenants receive a copy of the property’s EPC.

Keep reading for these answers and more. 

How long does an EPC last?

Once you receive your EPC, it’s good for 10 years. After this time, you only have to obtain a new one if you’re entering into a new lease with different tenants or you plan to sell the property. 

For example, if you’ve had the same tenants for the last 5 years and your EPC recently expired, but the same tenants plan to remain in the home, you don’t need to get a new EPC until they leave and you want to bring in new renters. Or if they move out and you plan to list the property for sale. You can’t enter into a new tenancy with new renters or list your home for sale with an expired EPC. 

Do I need tenant approval to schedule an EPC inspection?

Yes. If you currently have tenants living in your property, you need to give them at least 24 hours written notice before any property visits – including those made by a professional assessor. Most tenants are more than willing to allow an inspector into the home, considering having an EPC is a legal requirement. However, tenants have the right to refuse a visit unless it’s an emergency, including a fire, gas leak, or flood. 

Don’t be surprised if the tenants ask to be present during the assessment. Some people won’t feel comfortable having a stranger in their living space or near their personal items unattended. Work together with your tenant to choose a time and date that fits their schedule. Most assessments take between 30 and 45 minutes, depending on how large the property is and how many issues the assessor finds. 

Are tenants entitled to a copy of the EPC?

Yes. After the inspection is complete and the assessor gives your property a grade, you must provide the current tenants with a copy of the EPC. If the property is currently vacant and new tenants are moving in, you’re required to provide a copy of the EPC prior to move-in day. You can also post it somewhere on the property. 

Tenants who want to know how their landlord’s property ranked can find it by visiting the Government’s Energy Performance of Buildings Register. Type in your postcode and choose the rental property’s address to view the most recent EPC report and information. 

How can I make sure my property meets the EPC regulations for 2024?

For new or existing landlords worried about reaching an EPC grade of ‘E’ or better, there are certain steps you can take to improve the efficiency of your property. Just note that if you don’t meet this minimum requirement during the first visit, you’ll be required to make all necessary improvements before an EPC will be issued. This could take weeks, delaying your tenancy. For this reason, it’s best to get it right the first time. 

The good news is that all of these improvements and suggestions will be listed in detail in the assessor’s report. Landlords can also spend up to £3,500 on necessary upgrades and enhancements. This figure includes grants given by the government, local authorities, or energy companies and other available funding. If the recommended improvements exceed this amount, landlords can apply for a high-cost exemption through the PRS Exemptions Register. 

Some potential improvements may include:

• Insulating pipes and tanks
• Insulating a condensing boiler 
• Reducing water usage
• Installing a cavity wall and loft insulation 
• Draught-proofing any windows and doors
• Energy efficient glazing
• Installing renewable energy technology, including wood-fueled heating, air source heat pumps, wind turbines, or solar panels 
• Using low-energy lightbulbs 

What can I expect going into 2025?

No one can say for certain what’s on the horizon for 2025 in terms of new EPC regulations and requirements. However, whispers have indicated that the Government may be planning to make even more changes for landlords in England and Wales. 

One thing we do know is that the general election will happen no later than January 2025. For this reason, it might be in your best interest as a landlord to make these energy efficiency improvements now before you receive a fine or official report requiring you to do so. 

Ed Miliband, the shadow secretary for climate change, has also made it known that he would like to see an energy-efficiency rating requirement raised even further to an A-C grade for all tenancies. If Labour wins the 2025 election, all previous suggestions and strict requirements could come into play, leaving non-compliant landlords scrambling. This would also mean that all new tenancies could only begin if the property has an EPC rating of C or better. In 2028, this requirement would apply to all tenancies – new or existing. 

Landlords need to remain up to date on any new EPC regulations and changes to ensure their properties are in good legal standing. Tenants can also play an active role by requesting a copy of the EPC and searching prospective rental properties on the Government website.