EPC C date pushed back, but what does this mean for you?

Welcoming the news the Government has backtracked on plans to bring in a minimum EPC of C for new tenancies from 2028 and lowered the landlord spending cap, NRLA chief innovation officer and Safe2 founder James Kent explores what your next steps should be. 

In what can only be described as a victory for common sense the Government has taken our advice to revise its plans for Minimum Energy Efficiency Standards (MEES) in the private rented sector.  

But what does this actually mean? 

By way of a quick recap, the main announcements made include decisions to:  

• Axe the 2028 deadline requiring landlords signing new tenancies to hit the C target early. 

• Extend the 2030 deadline for EPC C to all tenancies. 

• Reduce the spending cap – the maximum amount landlords will need to fork out for improvements – from £15,000 to £10,000 per property. 

• Lower the spending cap incrementally for homes valued under £100,000. 

• Include all improvements made from October 2025 within this cap, rather than wait till regulations are laid before Parliament later this year. 

• Offer funding support for the sector through low-interest loans. 

At a time when positive news is in short supply these adjustments, which reflect our calls to Government, have been broadly welcomed.  

And while there is still a way to go, having clarity when it comes to the new rules means we can all start to plan for the deadline, after which all rental properties will need to be rated C or above (or be exempt) to be legally rented out. 

What do I need to do to be compliant?

If your property is currently rated a C, you don’t necessarily need to get a new EPC ahead of the 2030 date.  

However, as the certificates will now be valid for 10 years it could be worth it, as any property granted a C or above rating ahead of October 2029 will be recognised as compliant for the next decade. 

On the other hand, if you have any properties rated below a C you will need to commission a new EPC from October 2029. 

This is when the Government will introduce a new way of calculating EPCs, known as the Home Energy Model, which will use new metrics and could see landlords facing costly upgrades for the introduction of clean heating systems (such as air pumps) or solar panels – unless you have a valid exemption. 

With this in mind it is important to start planning now. Reviewing your portfolio, looking at how each property is performing and checking when your EPCs are up for renewal is a good start, as the best approach for you will depend on the types of homes you have, their existing rating and your personal circumstances. However, as a rule of thumb:  

If your property is already an EPC C under the current system you will have until September 2029 to renew that EPC and remain compliant. It is usually a good idea to make some small improvements to the property's energy efficiency rating to ensure the property retains its C rating.

If your property is close to an EPC C under the current system, it will probably be sensible to also make some improvements to bring the property up to C and renew the EPC close to September 2029. 

If it would cost significant sums to reach EPC C under the current model it would be worth waiting for the Home Energy Model-style EPC to be finalised. This means you can properly plan your improvements and identify any exemptions you might qualify for.

If you already have solar panels or an electrical heating system the new Home Energy Model EPC is likely to favour solar panels and heat pumps over gas boilers, meaning your property may actually increase its rating once the new rules are in place. In this instance waiting until the new EPC is published is likely to be beneficial to you.

What happens next?

While you consider your options we at the NRLA will continue to talk with Government about funding, in particular the low-cost loan proposals it has referenced in its plans. We will also respond to the consultation on Home Energy Model proposals, which closes next month. 

More information

Part of the NRLA family, Safe2 is a one-stop-shop for all things compliance, allowing you to organise inspections and order safety certificates, including EPCs, at the click of a button. For more information click here. 

We have a comprehensive guide to the new rules, including a list of exemptions, which is available here. 

The NRLA’s award-winning Training Academy runs an energy efficiency course giving you all you need to know on energy efficiency and how to access funding. Click here for more information and to book. 

We held a member-webinar on the MEES announcement last week. To read some FAQs click here. 

NRLA partner Domna is a one stop shop, when it comes to helping you improve your properties Energy Performance Certificate (EPC) ratings. For more information click here.