Significant changes to the Government’s EPC plans were announced last week. Here, we discuss this positive shift and what landlords can do to start preparing to meet the new deadline.
After years of discussions surrounding new minimum EPC requirements for private rental properties, we finally have a definitive plan in place. In a rare victory for landlords, the Government has even scaled back the cost and deadlines to support the sector in meeting the new targets.
The key changes include:
- Scrapping the 2028 deadline that required a minimum EPC rating of C for all new tenancies
- Reducing the spending cap on energy-efficient improvements from £15,000 to £10,000
- Including any energy-efficient improvements made from October 2025 within the new spending cap, meaning any recent investment made will be taken into account
- Lowering the spending cap incrementally for properties valued below £100,000
- Introducing low-interest loans to offer funding support to the sector
These positive changes to the Government’s rollout are primarily thanks to the NRLA’s campaigning for a fairer and more workable proposal package for the PRS.
What is the new deadline for EPC upgrades?
Landlords have until 1st October 2030 to bring properties to an EPC C or above (or register an exemption). Any properties that miss the deadline will be legally deemed unlettable.
What improvements can I make to meet the new EPC requirements?
The Government will encourage landlords to implement a ‘fabric first’ approach, prioritising material improvements such as insulation and new windows as a first step towards meeting the new requirements. This comes as part of Energy Secretary Ed Miliband’s Warm Homes Plan, which sets out “new rules to ensure landlords invest in upgrades to cut bills for renters”.
Other suggested improvements include:
- Solar panels
- Heat pumps
- Home and heat batteries
- Smart controls
- Draught proofing
Furthermore, as part of the Warm Homes Plan, a £7,500 universal grant for heat pumps will be made available, and the first-ever offer of air-to-air heat pumps to cool homes during the summer.
Do I need to get a new EPC?
Potentially, yes. However, the Government has increased the lifespan of a valid EPC rating from 5 to 10 years, meaning that if you secured an EPC of C tomorrow, the property would remain compliant for the next decade.
This will apply to any EPC rating of C or above achieved by the October 2029 compliance date.
>> Try our EPC calculator here to check your property’s current rating
How can I meet the new EPC requirements?
According to the NRLA, there are currently 2.5 million rental properties in England that require improvements to meet EPC C or above. With such a vast proportion of rental properties still needing energy-efficient improvements, it’s unlikely landlords will be able to fund this through savings alone.
There are many financing options to help you fund your energy-efficiency improvements. These include:
- Remortgage with a capital raise – Releasing cash from your property or your background portfolio to fund the works
- Further advance – Securing an additional loan based on available equity to cover the costs of the works
- Bridging finance – A short-term loan to make quick improvements to a property before refinancing onto a buy to let mortgage and letting it out
The right funding option for you will depend on your personal circumstances and your portfolio, so it’s essential you have one of our experts complete a FREE property portfolio review. We’ll review your current deals and options to see if there are opportunities to help you fund energy-saving improvements.
The next steps
If you’re planning your EPC improvements, speak to our experts to see how we can help you fund the project.
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