New EPC Regulations for Landlords in 2025: Why You Should Prepare Now

Key takeaways:

  • From 2025, all newly rented properties must have an EPC rating of at least “C”.
  • Existing tenancies will need to meet these requirements by 2028.
  • Some landlords can apply for free home upgrades through the ECO4 Scheme.

Landlords, it’s time to start preparing for new EPC regulations that will be coming into effect in 2025.

The new regulations will require landlords to have an EPC rating of Band “C” or above in order to rent out their properties, and failure to comply could result in significant fines.

So, what can you do to prepare for these changes?

In this blog post, we will discuss some of the steps you can take now to make sure your property is ready for the new regulations ahead of the 2025 deadline.

Keep reading to find out more…

What is an EPC?

If you’re not familiar with the Energy Performance Certificate (EPC), it’s a document that shows how energy efficient a property is. An EPC will give a property a rating from “A” (very efficient) to “G” (inefficient).

The certificate must be obtained by a qualified assessor and is valid for 10 years.

Currently, every rented commercial and domestic property is required to have an EPC of “E” or above, but that’s all about to change.

What are the new EPC regulations for landlords in 2025?

In an attempt by the government to reduce the UK’s carbon footprint while improving the energy efficiency of homes, new EPC regulations state that by 2025 all newly rented properties must have an EPC rating of at least “C”.

All newly rented properties in England and Wales must meet this standard by 2025 and existing tenancies must comply by 2028. These new regulations apply to both domestic and commercial landlords.

The government has made it clear that landlords who fail to comply with this regulation could face fines and other penalties.

Forming part of the Minimum Energy Performance of Buildings (No. 2 Bill) currently being passed through Parliament, the new rules aim to ensure that all landlords are doing their part to make leased properties as energy efficient as possible.

What impact will the new EPC rules have on landlords?

The impact these new regulations will have on landlords is yet to be seen, but, considering nearly two-thirds of homes in the private rental sector (60%) have an EPC rating of “D” or lower, we predict that it’ll be significant.

This percentage of properties actually makes up a staggering 77% of all CO2 emissions in homes across England and Wales.

With only 45% of UK landlords owning only one rental property, and 38% owning between two and four properties, many UK landlords may be unaware of these changing regulations if they’re not in the loop with housing market news.

The price for an upgrade could be costly, but landlords may discover that if they don’t take action they could find themselves with a property they’re unable to rent.

How much will EPC upgrades cost?

It goes without saying that the cost of making a property more energy efficient will depend on its current condition and size. On average, landlords could expect to pay anywhere between £2,000 and £10,000 for an upgrade in order to meet the new EPC rating requirements.

This may seem like a lot of money upfront, however, the good news is that landlords can save money in the long run by improving energy efficiency and having lower bills.

It’s estimated that landlords spend around £900 a year on heating, lighting and appliances – so making sure your property meets the new energy regulations will ensure you get the most out of your money.

How can I prepare for these changes?

With the new regulations set to come into effect in 2025, it’s important that landlords start planning now to ensure their properties meet the required standard.

The first step is to obtain an up-to-date EPC report from a qualified assessor. If your property has a current rating of “D” or lower, you’ll need to start looking into ways to improve energy efficiency.

These could include installing insulation in the walls and loft insulation, double-glazing windows and doors, or replacing old boiler systems and lighting with more efficient alternatives.

Ultimately, making changes now will save you time and money in the long run.

With some of the costs involved in meeting the new regulations being covered by government grants, landlords have no excuse for not taking action now.

Are there any EPC exemptions?

Yes, there are some exemptions to the new EPC regulations. However, it’s worth bearing in mind that an EPC exemptions list already exists and landlords can apply for an exemption.

These include:

  • All Improvements Made‘ – Where the relevant improvements have been made to increase energy efficiency but the property remains below standard.
  • High Cost‘ – When the cost of purchasing and installing the cheapest recommendation for improvement costs more than £3,500.
  • ‘New Landlord‘ – Temporary exemption, when someone has recently become a landlord, making it inappropriate for them to immediately comply with regulations. This exemption lasts six months.
  • Consent‘ – Third-party consent may be needed before energy-efficient measures can be installed on the property, like solar panels.
  • Devaluation‘ – When the installation of energy-efficient measures would reduce the property’s market value by more than 5%. An independent surveyor from the Royal Institution of Chartered Surveyors (RICS) must do the survey.
  • Wall Insulation‘ – Circumstances where the property is not suitable for internal or external wall insulation.

To be eligible for these exemptions at the moment, your property must reach the minimum EPC standard of band “E”.

It’s unclear as of yet how these exemptions will change alongside the new EPC regulations in 2025. However, it’s likely that many of these will carry over.

Are there any grants helping with property EPC upgrades?

Some landlords may be eligible for an energy efficiency grant through the ECO4 Scheme. This scheme provides funds for landlords to make energy efficiency improvements to their property and may cover the full cost of some upgrades.

It’s worth noting that landlords will have to meet certain qualifications to be eligible for the grant, such as owning a property with an EPC rating of “E” or lower (although this does not guarantee approval).

Other criteria include:

1) Own a rented property where the tenants have claimed benefits within the last 18 months

2) Be renting a property to tenants that claim Child Benefit

3) Have tenants that meet the local council’s authority flexible energy rules

4) Have the property be in an area receiving council funding.

Read more: Private Landlord Insulation Grants: What You Need to Know

Alternatively, the Great British Insulation Scheme (formally Eco+) was recently announced, offering home upgrades for people living in households with an EPC rating of D or lower and in a lower Council Tax band area can apply for the scheme.

Unlike the ECO4 Scheme, applicants don’t have to benefit from other government support schemes, like Income Support.

Although we can’t promise anything, we suspect that financial support may be offered closer to the introduction of the new EPC regulations for landlords.

That shouldn’t mean you sleep on making these changes as it could seriously affect you financially if left too long.

Upgrade your home for free with So Eco 

Thank you for reading our post on the new EPC regulations for landlords in 2025 and why you should prepare for them now.

Private landlords could upgrade their property for free through the ECO4 Scheme and So Eco.

To learn more about cost-effective energy-saving solutions, contact So Eco today or complete our free online eligibility checker.

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