EPC C plans: Government cuts landlord spending cap and pushes back 2028 deadline

Drastic proposals that would see landlords paying up to £15k per property for energy efficiency improvements have been scaled back by the Government, with a 2028 compliance deadline for new tenancies axed. NRLA chief executive Ben Beadle explains how our campaigning has shaped the new plans, and what they mean for you.

Positive news has been in short supply in recent months, but today’s Government announcements on new Minimum Energy Efficiency Standards (MEES) for the private rented sector (PRS) are a victory for common sense.

Ministers have confirmed their intention to ensure all rented homes should achieve an Energy Efficiency Rating of at least ‘C’, but have introduced a series of vital changes, including decisions to:

• Axe the 2028 deadline requiring landlords signing new tenancies to hit the C target early.
• 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, meaning recent investment can be taken into account.
• Offer funding support for the sector through low-interest loans.

These were calls that formed the central pillars of our campaign for a fair and workable package of proposals for the PRS during the consultation period last year.

New 2030 deadline for all landlords

Today’s announcement confirms all landlords, whether signing new tenancy agreements or with sitting tenants, will now have until October 1^st 2030 to bring their properties to EPC C or above (or register an exemption) to legally let them out.

The Government will be encouraging what it describes as a ‘fabric first’ approach, focussing works on material improvements  such as the installation of insulation or replacement windows, with the announcement coming as part of its Warm Homes Plan, designed to improve the energy efficiency of homes of all tenures.

Will I need a new EPC?

Of course, as with all major schemes, the devil is in the detail, with inevitable questions about what this means for existing EPCs.

EPCs will be valid for 10 years (up from five) meaning that should you get an EPC of C tomorrow, for example, you will be recognised as compliant for the next decade.

This will also be the case for any EPC rating of C or above achieved up to the October 2029 compliance date.

How has the NRLA shaped the new rules?

As I have said from the start, we support the provision of warmer and more energy efficient homes, which benefit both tenants and landlords.

Central to our calls was sensible, pragmatic plan, which is fair to landlords across the board and reflects the vast variance in property values across the country.

Don’t get me wrong, the new plans are not perfect, but this does demonstrate that our lobbying has worked and that the Government has listened, recognising the potentially devastating consequences of hundreds of thousands of homes being taken off the market for failing to meet the 2028 deadline.

Mammoth task

There is, however, still a mammoth task ahead. There are currently 2.5 million rental homes in England that will require improvements to meet EPC C or above – and a shortfall of skilled tradespeople that is estimated to reach a quarter of a million by 2030.

There is also further change up ahead, with a new consultation launched into the way in which EPCs are calculated.

The proposed new Home Energy Model will use new metrics to establish new bandings, although – as I touched on earlier – those with EPCs calculated using existing rules will still benefit from the 10-year protection prior to the October 2030 cut-off point.

What needs to happen now?

Now that we have confirmation of what the new MEES framework will look like we can support you through this period of change, and begin talks with Government to find out more about the low-cost loan proposals they have referenced in their plans.

Keep an eye on our news site and social media channels for more, and start to consider ways in which you can make affordable changes that could have a big impact when it comes to your next EPC inspection, something you can read more about on our website here.

More information

• In addition to the changes outlined above the Government has also pledged £2.7 billion to the Boiler Upgrade Scheme, funding that is available to private landlords to replace fossil fuel boilers with heat pumps. Up to £5 billion has also been pledged to the Warm Homes Fund, grant funding available to landlords depending on their local authority area.
• We are running a free member webinar on the new MEES regulations - and what landlords need to know - on 29th January at 11am. Click here to book your place.
• 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.
• 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. 
• 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.