Energy efficiency is no longer just a buzzword! It is quickly becoming one of the biggest factors in the United Kingdom’s rental market. Tenants want warmer, greener homes and the government is continuing to steer landlords towards higher energy standards.
If you own a rental property in the capital, here is everything you need to know about EPC ratings, the current rules and what could be coming next!
WHAT IS AN EPC?
An Energy Performance Certificate (EPC) measures how energy efficient a property is, rated from A (most efficient) to G (least efficient). It shows estimated running costs and offers practical suggestions to help improve performance.
Every rented home in the UK must have a valid EPC before it can be marketed. The certificate lasts 10 years and must be provided to tenants before they move in. You can check your property’s rating anytime on the official website.
Current Rule: EPC E or above
Since April 2020, landlords in England and Wales can only rent out homes that achieve EPC Band E or higher. If your property is rated F or G, you will need to make improvements or register a valid exemption before letting it. Failing to comply can lead to fines of up to £5,000 per property.
This rule is known as the Minimum Energy Efficiency Standard (MEES)
EPC C by 2030 has been proposed!
Yet to be legislated, the government has proposed that all private rented homes should achieve EPC Band C by 2030.
- New tenancies may need EPC C from 2028
- All existing tenancies by 2030
These are proposals only, not current law, but they clearly show the direction the market is heading. A potential £15,000 cost cap and certain exemptions have also been discussed to help landlords manage upgrade costs more realistically.
Coming Soon: New “Home Energy Model”
In 2026, the government plans to launch a new calculation system called the Home Energy Model, replacing the current EPC formula.
It will use smarter, real-life data to assess energy use; meaning some property ratings could change even if nothing physical has been upgraded.
WHY does this matters to landlords?
Even before any new rules take effect, the market is already changing. Tenants are increasingly prioritising comfort, cost efficiency and sustainability, especially in sought-after postcodes in London like Kensington, Chelsea and Mayfair.
Properties with stronger EPC ratings tend to:
- Rent faster and stay occupied longer
- Attract higher-quality tenants
- Command stronger rental values
An upgrade from E to C can make your listing stand out in an area full of premium competition!
HOW TO PREPARE?
1. Check your EPC
- Find your certificate on the GOV.UK
- If it is over 10 years old, renew it before your next tenancy begins
2. Start with easy upgrades
Small changes can make a big impact:
- Add loft or wall insulation
- Switch to LED lighting
- Fit draught excluders and upgrade glazing
- Replace older boilers with efficient systems or heat pumps
3. Plan long-term upgrades
If your property is older or listed, begin with a long-term plan. Spreading upgrades over time helps balance cost and convenience.
4. Explore funding
Some councils and government programmes offer financial help for insulation, heating and renewable upgrades. Read more for advice.
5. Know your exemptions
If improvements are not viable, apply via the PRS Exemptions Registers, but always keep the records!
THE TAKEAWAY
- EPC E remains the legal minimum in 2025
- EPC C by 2030 is proposed but not yet law
- Acting early will keep your property compliant, attractive, and profitable
Preparing now means fewer headaches later. By reviewing your EPC, planning upgrades and staying informed, you’ll protect your investment and stay ahead of any new rules. At Interlet, we are only a call away to take the worry out of property management, helping landlords stay compliant, efficient and confident about the future.
