Current minimum EPC rating for rental properties
All rental properties in England and Wales must currently have an EPC rating of E or above. This applies to both new tenancies and renewals.
If your property is rated F or G, you cannot legally let it to new tenants unless you have a valid exemption registered on the PRS Exemptions Register.
This requirement has been in place since April 2020 for all existing tenancies.
The proposed EPC C requirement
The government has signalled its intention to raise the minimum EPC standard for rental properties to C. The timeline for this change has been subject to several delays and consultations.
As of early 2026, the confirmed position is:
- New tenancies — the EPC C requirement is expected to apply from 2028 onwards
- Existing tenancies — a later deadline, potentially 2030, would bring all remaining rental properties into scope
- Legislation — the exact implementation dates and rules are still subject to parliamentary approval
These dates may change. Landlords should keep an eye on official government announcements through GOV.UK rather than relying on third-party speculation.
Important caveat: this guide provides general information about EPC regulations as understood at the time of writing. It is not legal advice. If you are unsure about your obligations, consult a qualified property solicitor.
What happens if your property does not meet the minimum?
Letting a property that falls below the minimum EPC rating can result in fines:
- Up to £5,000 per property per breach under current regulations
- Local authority trading standards departments enforce compliance
- Fines can apply even if you were unaware of the requirement
The penalty structure may increase when the C rating requirement comes into effect.
Exemptions for landlords
You may be exempt from the minimum EPC requirement if:
Cost cap — you have spent up to the cost cap on energy improvements (currently £3,500 including VAT) and the property still does not reach the minimum rating. You must register this exemption.
Wall insulation — a relevant energy assessor has advised that cavity wall, external wall, or internal wall insulation is not suitable for the property.
Third-party consent — a necessary improvement requires consent from a tenant, freeholder, or planning authority, and that consent has been refused.
Property value — a qualified surveyor has provided evidence that the improvements would reduce the property's market value by more than 5%.
All exemptions must be registered on the PRS Exemptions Register. They typically last for 5 years, after which you must reassess and either make improvements or re-register.
How to improve your EPC rating as a landlord
The most cost-effective improvements for rental properties typically include:
- Loft insulation — often the cheapest and most impactful upgrade, costing £300 to £600
- Cavity wall insulation — typically £500 to £1,500 depending on property size
- Upgrading heating controls — programmable thermostat and TRVs, £200 to £500
- Replacing an old boiler — a modern condensing boiler costs £2,000 to £3,500
- Draught proofing — sealing gaps around doors and windows, £100 to £300
Available grants for landlords
Several government schemes can help with the cost of energy improvements:
ECO4 — the Energy Company Obligation scheme provides funding through energy suppliers for insulation and heating improvements. Eligibility depends on the property's EPC rating and the tenant's circumstances.
Boiler Upgrade Scheme — provides grants of up to £7,500 towards air source heat pumps and £5,000 towards ground source heat pumps. Available until 2028.
Great British Insulation Scheme — targets single measures like cavity wall or loft insulation in homes with EPC ratings of D, E, F, or G. Delivered through energy suppliers.
Check GOV.UK for the latest eligibility criteria and how to apply.
HMO-specific rules
Houses in Multiple Occupation follow the same EPC rules as standard rental properties. However, there are some additional considerations:
- A single EPC covers the whole building, not individual rooms
- Shared heating systems are assessed as a whole
- Each self-contained unit within an HMO may need its own EPC if it has a separate entrance and own facilities
Commercial property EPC requirements
Commercial buildings have different EPC requirements. Since April 2023, commercial properties must have an EPC rating of E or above to be let. The rules are enforced through the Minimum Energy Efficiency Standards for non-domestic buildings.