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EPC regulation update: landlord energy-efficiency readiness and what’s next

In 2023 the UK government scrapped planned changes to minimum Energy Performance Certificate (EPC) requirements for landlords, surprising many in the private rented sector. Although landlords no longer face a legal deadline to make sure all properties reach EPC C by 2025 or 2028, the landscape around energy efficiency and landlord obligations continues to evolve.

This guide explains how landlords responded to the proposed changes, what the current rules are, ongoing policy developments and long-term energy-efficiency considerations for the private rented sector.

What the scrapped EPC C proposals would have meant

Under previous government plans, rental properties in England would have been required to achieve a minimum EPC rating of C to be let:

  • A deadline of 2025 was proposed for new tenancies
  • A deadline of 2028 for all tenancies

These plans were intended to improve energy efficiency, reduce carbon emissions and help tenants with rising energy costs.

However, in September 2023, then-Prime Minister Rishi Sunak announced that the tougher EPC rules for landlords would not go ahead as planned — a move that immediately influenced landlord decisions on energy improvements.

Many landlords were already prepared

Research conducted by Shawbrook Bank involving more than 1,000 UK landlords found that around 80% said they were already prepared for the proposed EPC changes before they were scrapped.

Of those surveyed:

  • 30% said their rental properties already had an EPC rating of A–C
  • 50% said they had plans in place to improve EPC ratings ahead of the original deadlines
  • Nearly half had invested between £500 and £20,000 on energy efficiency improvements over the previous year

This suggests many landlords were already prioritising energy efficiency even before the regulatory direction changed.

Why landlords invested in energy efficiency

A combination of factors helped drive investment in EPC improvements even before any legal obligation:

  • Rising tenant demand for energy-efficient homes, with many renters placing EPC ratings high on their checklist when choosing a property
  • Landlords anticipating future regulatory requirements, wanting to avoid rushed works near any new deadlines
  • The prospect of lower running costs and reduced void periods for energy-efficient properties

Data from tenant surveys highlights how energy efficiency often influences tenant choice — alongside other factors such as broadband speeds and location.

For guidance on the benefits of energy-efficient homes, see our article on why landlords should plan for energy improvements. (internal link to relevant LandlordZONE guide)

Current EPC requirements for landlords

Even though tougher EPC C proposals were scrapped, Minimum Energy Efficiency Standards (MEES) still apply in the UK. Under MEES:

  • Rented properties must have an EPC rating of at least E to be legally let in England and Wales
  • Exemptions may apply where landlords can demonstrate that improvements cannot be made safely or without disproportionate cost

Landlords need to provide a valid EPC when marketing a property and must keep records of energy performance certificates for compliance purposes. Failure to meet minimum standards without an exemption can result in fines.

For full details on current EPC obligations and exemptions, see what EPC ratings mean for landlords. (internal link to EPC explanation guide)

Could minimum EPC targets return?

While previous EPC C deadlines were shelved, energy-efficiency requirements are not off the table permanently:

  • In 2024 and 2025, government discussions indicated that a minimum EPC C target might be reintroduced with a longer deadline (e.g., 2030) to give landlords more time to prepare.
  • The Labour Party manifesto has previously stated plans to make sure PRS homes meet minimum energy efficiency standards — though consultation and legislation are still pending.

A policy return could affect landlord obligations and investment planning once more. Even without a formal new deadline, many landlords continue to plan improvements in anticipation of evolving energy standards.

What landlords should consider now

1. continue improving energy performance

Even without a strict new deadline, improving property EPC ratings can reduce energy costs for tenants, make homes more attractive and future-proof portfolios against policy shifts.

See our guide to EPC improvement options for landlords for practical steps. (internal link)

2. understand MEES compliance

Minimum requirements (currently EPC E) still apply, and landlords must maintain valid certificates.

Refer to how to comply with EPC and MEES rules for legal compliance. (internal link)

3. track policy developments

Stay updated via sources like the Department for Energy Security and Net Zero (DESNZ) and LandlordZONE’s Renters’ Rights Bill hub, as government consultation on energy requirements continues.

Internal link: Renters’ Rights Bill hub (internal link)

FAQ: EPC requirements and future targets

Will landlords need EPC C in the future?
Minimum EPC C requirements were scrapped in 2023, but policy discussions suggest a potential return with a longer timeline, such as by 2030. Landlords should monitor government updates.

Do landlords still need an EPC to let property?
Yes — current MEES rules require privately rented properties to have at least an EPC rating of E to be legally let unless an exemption applies.

What are exemptions to EPC rules?
Exemptions may apply for cases of disproportionate cost, physical barriers to improvement or where works are legally restricted. Always keep documentation to support an exemption claim.

Does improving EPC affect rental demand?
Tenants often seek energy-efficient homes to reduce bills, making higher-rated properties more attractive. This trend supports landlord investment regardless of statutory deadlines.

What EPC rating do landlords currently need?
Landlords must make sure a rented property has a minimum EPC rating of E under current MEES rules, unless an exemption is registered. Regulatory change proposals for a higher minimum have been scrapped but may return in future consultations.

Why were EPC C requirements scrapped?
In 2023 the Government withdrew plans for minimum EPC C requirements for rental properties amid concerns about cost, implementation timelines and broader policy priorities.

Is there a new deadline for EPC improvement?
No formal new deadline has been set yet, but discussions continue about potential future targets (such as by 2030). Landlords should stay informed via government announcements and LandlordZONE’s EPC policy coverage. (internal link)

Key takeaways for landlords

Although the Government paused stricter EPC requirements in 2023, energy efficiency remains an important part of property management strategy. Many landlords were already prepared for change before it was scrapped — and may still benefit from investing in energy improvements for tenant attraction, cost savings and long-term resilience.

Staying compliant with current MEES rules, planning ahead for likely policy returns, and understanding how EPC ratings affect both rental demand and financing options (see how EPC ratings affect buy-to-let mortgages) will help landlords maintain competitive, compliant portfolios.

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