FAQs for landlords: Upcoming EPC reforms & minimum energy efficiency standards
To help landlords digest Government proposals to reform EPCs and introduce new minimum energy efficiency standards, we’ve covered the most frequently asked questions below.
Important: The proposals detailed below are only at consultation stage, so have not yet been confirmed. They are what the government would like to do, not what they necessary will do. We’re bringing landlords this information so that they’re fully-informed and can consider plans to comply if or when they need to.
General EPC changes
What are the proposed upcoming changes to Energy Performance Certificate (EPC) assessments?
The UK Government plans to revamp how Energy Performance Certificates (EPCs) display energy efficiency, as outlined in their Reforms to the Energy Performance of Buildings Regime consultation.
Instead of a single energy efficiency rating (A-F), EPCs are likely to feature four headline metrics:
- Fabric Performance – Measures insulation and building efficiency.
- Heating System – Assesses heating efficiency and environmental impact.
- Smart Readiness – Evaluates the property’s ability to integrate smart energy technology.
- Energy Cost – Provides an estimated cost of energy use.
These changes aim to provide a clearer and fairer picture of a property’s energy performance.
When will these new-look EPCs be in effect?
The new EPC format is expected to roll out in the second half of 2026. The government will consult on the methodologies behind the new metrics in 2025.
Why is the EPC system being updated?
The current system is tied to fluctuating energy costs, which can make EPC ratings misleading. The new system aims to provide a more accurate reflection of a property’s energy efficiency, independent of energy price variations.
EPC validity & requirements
Will the validity period of EPCs change?
Currently, EPCs last for 10 years and are only required at the point of build, sale, or a new tenancy. As part of the consultation, the government invited comments on reducing the validity period to ensure energy efficiency is more regularly reviewed.
Will landlords need to renew EPCs for ongoing tenancies?
Under current rules, EPCs are only required when tenants change. However, the government is considering changing it so that landlords must always obtain a new EPC once the current one expires, similar to gas safety certificates.
When marketing a rental property, when must an EPC be provided?
Under proposed reforms, a valid EPC must be available before a property is marketed for sale or rent – eliminating the current 28-day grace period.
Minimum Energy Efficiency Standards from 2028
What are the new minimum energy efficiency standards?
From 2028 (for new tenancies) and 2030 (for existing tenancies), the government intends for landlords to meet minimum standards for:
- Fabric performance – this will be mandatory, i.e. the primary requirement.
- Heating system or smart readiness – these two will be mandatory secondary requirements (landlords must meet the minimum standard for at least one).
The actual minimum standards, e.g. “at least a rating ‘C’ for fabric performance” or “at least a score of 70 for heating system”, have not yet been revealed.
Will properties with an existing ‘C’ rating need a new EPC when reforms happen in 2026?
No. If a property has a valid EPC rated ‘C’ or above before the reforms in 2026, it will be considered compliant with the new minimum standards coming in from 2028 until the certificate expires.
What happens to properties rated below ‘C’ when the reforms take effect?
Landlords will need to obtain a new EPC under the revised system due to be introduced in 2026. If the property does not meet the new standards, improvements will be required to comply.
What EPCs might look like and the metrics properties will be targeted on
Cost & compliance
If I want to improve energy efficiency in my property now, what would you recommend?
While we await further government updates, we suggest taking a ‘fabric first’ approach, as it’s highly likely that meeting a minimum ‘fabric performance’ standard will be a key requirement. Focus on enhancing insulation, ventilation, and window fittings. However, before making any upgrades, be sure to check out our ‘expert advice’ section at the bottom of this article.
How much will landlords need to invest to meet the new standards?
The current cost cap to comply with minimum energy efficiency standards is £3,500, but the government proposes increasing this to £15,000 (including VAT).
Will the energy efficiency investments I made before 2026 be included in the £15,000 cost cap?
No. Under the proposals, any work completed before the new standards are confirmed (expected in late 2026) will not count toward the cap.
How does the cost cap apply if I’ve spent £6,000 on upgrades, but the final recommended improvement is going to cost £10,000 to install a new heating system?
In this scenario, since the final upgrade would exceed the cost cap of £15,000 (£6,000 + £10,000 = £16,000), you wouldn’t be required to proceed with the installation of the new heating system. Instead, you could register a ‘high cost’ exemption.
Is there going to be an affordability exemption for landlords?
An affordability exemption is being considered, reducing the cost cap to £10,000 for qualifying landlords.
Will there be funding support available?
Yes. Current schemes such as the Boiler Upgrade Scheme, the Great British Insulation Scheme, and the Warm Homes Nest scheme offer financial support. The government plans to introduce further funding options before the new regulations take effect.
What are the penalties for non-compliance?
Currently, landlords face fines of up to £5,000 for non-compliance with minimum energy efficiency standards. The government proposes increasing this to £30,000 per property.
Short-term & holiday lets
Will short-term and holiday lets require an EPC?
Yes. The government plans to introduce legislation requiring all short-term/holiday lets to have a valid EPC, regardless of whether the occupier pays the energy costs.
Expert advice for landlords
- Get your opinion heard by responding to the minimum energy efficiency standards consultation. You can do so via the Consultation Response page.
- If your property is already rated ‘C’ or above, consider getting a new EPC in early 2026 (before the reforms take effect) to lock in compliance for 10 years.
- If your property is just below ‘C’, consider making small upgrades now to get you up to a ‘C’ now, for the same reason as above. This is especially true for properties with gas central heating, which the new EPC system will penalise because of carbon emissions.
- If your property is significantly below ‘C’, wait until the new EPC system launches before making upgrades. Any work done before late 2026 won’t count toward the £15,000 cost cap.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
