EPC rules are changing for landlords in 2025

10th June 2022

For landlords renting out properties in the coming years, the rules surrounding the Energy Performance Certificate (EPC) rating are being tightened. With the government starting to take its climate commitment seriously it’s raising the minimum EPC rating a rented property can have. So, we want to make sure that landlords know what these changes are and when they will come into effect.

New minimum EPC rating for rented properties

Under the new regulations surrounding the energy efficiency of rented properties, a minimum EPC rating of C is required. For new tenancies, a C-rating is required from December 2025 with existing tenancies having until 2028. It is important to note that if a tenancy is renewed after December 2025 it will need to have an EPC rating of C before 2028 for it to be legally let. This comes after the minimum EPC rating for rented properties was raised to an E-rating in April this year. If a rented property does not meet these requirements by the dates stated above then it cannot be rented out.

Changes for landlords

These changes to the minimum EPC rating of rented properties will affect landlords all over the country. In the UK there are around 3 million rental properties that have an EPC rating of D or below. To ensure that all these properties are up to standard by 2025 it is predicted that landlords will have to pay over £23 billion collectively, which is estimated to cost around £7,646 per property that requires updating. Whilst there aren’t any current grants offered by the government to help make these improvements, we will announce any available grants to landlords in our latest news should they become available. Furthermore, consumer pressures will make it more important to upgrade properties as tenants want to cut energy costs by living in more energy-efficient homes. The areas that these changes will hardest hit are London and the West Midlands where 62% and 60% of properties respectively have an energy rating of D or below. Our Head of Operations Reema Sabubba commented regarding the changes;

Government support to help landlords upgrade their properties is essential to prevent them from leaving the renting sector and further reducing an already limited housing stock”

The NRLA is currently running three campaigns pushing for more support to be given towards increasing the energy efficiency of homes. The first is calling for more targeted funding and financing for landlords. It calls for this aid to be direct and not related to property value. Secondly, they are calling for tax reductions on properties that are being upgraded at least to offset the costs. And finally, they are calling for a Building Renovation Passport to replace the current EPC system. This would help landlords better what upgrades are needed in a property and give them a clear trajectory for the improvements.

Overall, the minimum EPC rating of a rented property is being raised from an E-rating to a C-rating starting in December 2025. For existing tenancies, the enforcement date will be in 2028.

If you are a landlord and what to know how to upgrade your property to meet the new EPC requirements and how Seraph can support this, you can contact us here.

• Share: