01206 544333
The government has set out significant changes to energy performance requirements for rental properties, and landlords need to start planning early. While the deadlines may seem some way off, the actions taken now could have a major impact on costs and compliance in the years ahead.
This guide outlines what is changing and what landlords should be doing now.
.
.
What Changes Are Coming?
Under the current proposals, all rental properties in England and Wales will need to achieve a minimum EPC rating of C by 1 October 2030. This applies to both new and existing tenancies.
Alongside this, the way EPCs are assessed is also changing. The current system, Energy Efficiency Rating (EER) based on energy cost, will be replaced by a new Home Energy Model (HEM) from 1st October 2029. This new model focuses more on the building’s fabric, heating systems, and ability to use smart energy technology.
This means that some improvements that currently boost EPC ratings may not have the same impact under the new system.
The new Minimum Energy Efficiency Standard (MEES) will apply to existing and new tenancies alike on 1st October 2030.
.
The “Grandfathering” Opportunity
There is an important window of opportunity before the new system comes into full effect.
If a property achieves an EPC rating of C under the current system before 1 October 2029, that certificate will remain valid for up to 10 years. This is often referred to as the “grandfathering” arrangement.
As a result, there is likely to be a surge in demand for EPC assessments between early 2029 and the September deadline. Landlords who leave this too late may struggle to secure an assessment in time.
.
Why Planning Ahead Matters
The new Home Energy Model introduces a different way of assessing properties. It places greater emphasis on insulation, building performance, and low-carbon or smart energy systems.
For example, even a modern gas boiler may not achieve a high rating under the new system, regardless of efficiency. This means that carrying out certain upgrades now, without understanding the future criteria, could result in unnecessary expenditure.
Taking a measured approach is key.
.
Cost Caps and Record Keeping
The proposed rules include a cost cap of £10,000 per property, or 10% of the property’s value if it is worth under £100,000.
Importantly, any qualifying energy efficiency improvements made from 1st October 2025 can count towards this cap. This makes it essential for landlords to keep clear records of any work carried out, including invoices and receipts.
If the cost cap is reached, landlords may be able to register an exemption and continue letting the property.
.
Grants and Funding Support
There is a range of grants available to support energy efficiency improvements, particularly where tenants meet certain criteria.
Landlords should review what funding is available through local councils and national schemes before committing to any major works, as this could significantly reduce overall costs.
.
What Landlords Should Do Now
There are several practical steps landlords can take today to prepare:
-
Review current EPC ratings and identify how close properties are to a C rating
-
Consider improving insulation and overall building fabric first
-
Avoid rushing into major upgrades until the new system is fully confirmed
-
Check eligibility for available grants and funding schemes
-
Keep detailed records of all energy efficiency expenditure from October 2025 onwards
-
Plan ahead for EPC renewals well before 2029
.
.
How can Advocate Finance help?
We provide a FREE assessment of all our services. Please contact us directly for more information, or use the Get in Touch With Us Today feature at the bottom of this page.
