EPC Changes for Landlords: What You Need to Know Before 2030

EPC Changes for Landlords: What You Need to Know Before 2030

Kathryn Roberts

Kathryn Roberts

Aug, 12 2026

The government’s Warm Homes Plan has confirmed a major change to Energy Performance Certificate (EPC) requirements for the private rented sector. From 1st October 2030, rented homes in England and Wales will need to meet the equivalent of an EPC C rating, unless a valid exemption applies. This forms part of the wider Minimum Energy Efficiency Standards (MEES), and landlords who prepare early will be far better placed to manage the cost and disruption involved.

If you own rental property, here’s what’s changing, why it matters, and the practical steps you can take now.

What Is Changing With the EPC System?

The current EPC system is being replaced with a new framework. Rather than relying on a single headline rating, properties will be assessed across three separate metrics:

  • Fabric performance – how well the building itself retains heat
  • Smart readiness – how well the property can respond to smart energy technology
  • Heating systems – the efficiency of the property’s heating

Under the new system, landlords will need to reach a C rating across two of these three metrics. Fabric performance must always be one of them. Landlords then have discretion over whether the second metric is heating systems or smart readiness.

Why Fabric Performance Comes First

Fabric performance measures how well a property retains heat, covering walls, roofs, floors, windows, doors and draught proofing. Because these improvements reduce a property’s underlying energy demand, they’re expected to be the starting point for compliance, and the metric landlords cannot avoid addressing.

Heating Systems and Smart Readiness

Of the two remaining metrics, landlords can choose which one to bring up to a C rating, but the heating system metric is always optional. In practice, this means:

  • If heating system improvements are possible but no smart readiness improvements are, landlords are not required to carry out the heating works.
  • If smart readiness improvements are possible but no heating system improvements are, the smart readiness works should be carried out, unless an exemption applies.

For the heating system metric specifically, fossil fuel heating systems are not expected to achieve a C rating, and installing fossil fuel heating will not count towards the cost cap. Electric heating systems with thermal storage may be capable of meeting the standard. Solar panels are expected to sit within the smart readiness metric, though landlords should be cautious about carrying out smart readiness works until the government publishes further guidance on cost-cap spending and the order works should be completed in.

EPC Exemptions Landlords Should Know About

Three exemptions are expected to be available under the new system:

Cost-cap exemption – Available once a landlord has spent up to £10,000 (including VAT) without reaching a C rating. If a C rating for fabric performance is achieved before the full £10,000 is spent, any remaining budget may need to go towards the heating system or smart readiness metric.

Third-party consent exemption – Available where a required third party refuses consent for improvement works. This can include a tenant refusing consent, where their consent is legally required for access.

Wall insulation exemption – Available where a written report from a qualified expert shows that installing wall insulation (solid wall, cavity wall, or external) would negatively impact the property. Relying on this exemption does not remove the need to carry out other required improvements.

Further clarification is still awaited on how these exemptions will interact with the new multi-metric test. However, the direction of travel is clear: landlords should expect to prioritise fabric improvements before relying on exemptions elsewhere.

What Happens to Existing EPCs?

  • If a property reaches an EPC C under the current metrics before 1st October 2029, that EPC should remain valid until it expires.
  • If a property has not reached EPC C before 1st October 2029, landlords will need to commission a new EPC under the new metrics, carry out the necessary improvements, commission a post-retrofit EPC before 1st October 2030, and apply for any relevant exemptions.

What Should Landlords Do Now?

While 2030 may feel some way off, the scale of works required means early planning matters. As a first step, landlords should:

  • Review existing EPC ratings across their portfolio and identify any properties below a C
  • Consider which fabric improvements are likely to be needed, such as insulation, double glazing and draught proofing
  • Start acting where possible, since spending from 1st October 2025 counts towards the cost-cap exemption
  • Keep clear, dated records of all improvement costs, including VAT and EPC assessment fees
  • Wait for further government guidance before relying on any exemption

Landlords managing multiple properties, or those unsure how the new EPC framework will affect a specific portfolio, may benefit from a wider review of their landlord and tenant obligations alongside their property management arrangements, to make sure compliance planning fits with day-to-day management of the property.

Get EPC and MEES Advice From Ceres Property

Meeting the new EPC standards will involve careful planning, particularly where a property needs improvements across more than one metric. If you’d like help building an action plan to improve the EPC ratings across your portfolio, contact the Ceres Property team for specialist advice.

This article is intended as general information only and does not constitute legal or professional advice. Specific advice should always be sought based on individual circumstances.

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