Energy Performance Certificates for Landlords: The 2026 Position and the 2030 Deadline

An Energy Performance Certificate rates a property from A (most efficient) to G (least efficient) and is legally required when letting any residential property in England and Wales. EPCs are valid for ten years and can be reused within that period, but a certificate that is ten years old when a new tenancy begins is still legally valid — even if the property's energy performance has changed since it was issued.

The Minimum Energy Efficiency Standards (MEES) currently prohibit landlords from granting or renewing any domestic tenancy where the EPC rating is below E, unless a valid exemption has been registered on the PRS Exemptions Register. This applies to new and existing tenancies alike — a property with an F or G rating cannot lawfully be let, regardless of how long the current tenancy has been running.

What Has the Government Confirmed for 2030?

The Government's Warm Homes Plan confirms that all private rented sector properties must meet an EPC C-equivalent standard by 1 October 2030. This is confirmed government policy, with implementing regulations expected to follow the Home Energy Model reform currently underway.

The 2030 framework differs from the current MEES regime in several important respects. The cost cap — the maximum a landlord can be required to spend on improvements before qualifying for an exemption — is set at £10,000 per property over a ten-year period. The penalty ceiling rises to £30,000 per property per breach, a sixfold increase from the current £5,000 maximum. And the assessment framework itself is changing.

What Is the Home Energy Model — and Why Does It Matter?

The current EPC system rates properties on a single energy efficiency score, calculated primarily on the basis of running costs. This creates a well-documented anomaly: installing a heat pump can actually reduce an EPC rating in properties where electricity costs more than gas per unit, even though a heat pump is a significantly more efficient heating system in energy terms.

The Home Energy Model, which will replace the current SAP methodology for domestic EPCs, addresses this by measuring fabric performance separately from heating system efficiency. Under the new framework, the assessment will evaluate the building's insulation, windows, and thermal envelope as one metric, and either heating system efficiency or smart readiness as a second. This dual-metric approach more accurately reflects a property's actual energy performance and removes the perverse incentive against heat pump installation.

The practical implication for landlords is that properties currently rated D may achieve C under the new framework without additional works — or may not. The only way to know is to commission a new EPC assessment under the new methodology when it becomes available. Landlords who hold properties at D should not assume they will automatically achieve C under the new system, but equally should not assume they will require significant expenditure without an assessment.

What Are the Exemptions — and How Do You Register One?

If a property genuinely cannot reach the required EPC standard despite all cost-effective improvements having been made, landlords can register an exemption on the PRS Exemptions Register. The available exemption categories include the high-cost exemption (where the cost of reaching the standard would exceed the applicable cap), the all-improvements-made exemption (where all permissible measures have been installed but the rating has not reached the threshold), and a number of specific circumstances covering listed buildings, consent issues, and property devaluation.

Exemptions must be renewed periodically and are property-specific — a portfolio landlord cannot register a blanket exemption across multiple properties. Each property requires its own assessment and registration. Local authority enforcement teams have access to the register and use it to verify compliance; an unregistered property below the minimum standard is exposed to penalty regardless of whether a genuine exemption case exists.

What Funding Routes Are Available?

The primary government funding routes in 2026 are the Boiler Upgrade Scheme (BUS), which provides grants of £7,500 for air source and ground source heat pumps for most homes — with a temporary uplift to £9,000 for properties currently using heating oil or LPG, announced April 2026 and available from mid-2026; the Warm Homes: Local Grant, targeted at low-income tenants in D-to-G rated properties and administered through local authorities; and zero-rated VAT on qualifying energy-saving materials, which runs until at least March 2027. The BUS has been extended and is funded until at least 2028. Landlords planning improvement works should factor these funding routes into their investment modelling before commissioning work at full cost. For guidance on controlling costs across the portfolio more broadly, see our guide on reducing landlord costs without cutting quality.

This article reflects our understanding of the law at the time of publication. It is for general guidance only and does not constitute legal advice. Always verify against GOV.UK or seek qualified legal advice before acting.