New EPC regulations 2025: Help your landlords avoid this huge mistake
What's Changing and Why It Matters
The UK government is pushing ahead with raising the minimum required Energy Performance Certificate (EPC) rating for privately rented properties from E to C—initially proposed by 2030 for existing tenancies and 2028 for new ones. This move is part of the Warm Homes Plan aimed at reducing tenant energy bills and tackling fuel poverty.
New Technical Assessment Method from June 2025
As of 15 June 2025, the UK will transition to the RdSAP 10 methodology for assessing EPCs. This updated system demands more detailed, evidence-based reporting—assessors will need documentation (e.g., receipts, model numbers, insulation specs) or improvements may not be recognised in the rating.
What It Means for Landlords
• Compliance Costs: Bringing a property up to EPC C may cost between £6,100 and £8,000, with a government-proposed spending cap of £15,000 per property. In areas of low rent or council tax, an affordability exemption may reduce this cap to around £10,000.
• Portfolio Impact: With the average landlord holding eight properties, total costs could skyrocket. Experts urge a phased approach and highlight the importance of financial and logistical planning.
Why Acting Now Pays Off
• Tenant Demand: Energy-efficient homes lower utility bills and tend to attract tenants more quickly—landlords may reap long-term gains from higher EPC ratings.
• Avoiding Fines: Non-compliance may result in penalties up to £30,000 per property.
• Market Pressures: With rising demand for green housing, delaying upgrades risks losing tenant interest and property value.
Action Steps for Landlords
|
Step |
Recommended Action |
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A. Review Your EPC |
Check your current rating via gov.uk. If it's lower than C, plan improvements now. |
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B. Gather Your Documentation |
Gather invoices, manufacturer data, and installation details to support any energy upgrades under RdSAP 10 assessments. |
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C. Implement Upgrades Strategically |
Start with cost-effective interventions—like insulation, double glazing, smart heating systems, and energy-efficient boilers. |
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D. Explore Financial Support |
Apply for available grants—such as the Boiler Upgrade Scheme and Warm Homes schemes—or check for local authority help—and consider exemptions if costs are prohibitive. |
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E. Budget and Phase Upgrades |
Spread improvements over time to manage expense and contractor availability ahead of the deadline. |
Conclusion
The shift to EPC C compliance, combined with more rigorous assessment standards from mid-2025, marks a significant turning point in the UK rental market. For landlords, the smartest move is to start early—review your EPCs, gather evidence, prioritise upgrades, and tap into funding or exemptions. Navigating the changes proactively not only ensures compliance but also elevates your property's market appeal and long-term value.
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