Currently, all rental properties require an EPC rating of ‘E’ or above according to Minimum Energy Efficiency Standards (MEES) regulations.
Proposed changes from the Rental Reform White Paper, from December 2025, all rented properties would require a rating of ‘C’ or above.
Landlords would have until 2028 to ensure that these changes are made.
Due to the substantial number of older properties in the UK, an approximated two-thirds of all homes in the UK could have an EPC rating poorer than C, which wouldn’t comply with the new minimum.
National Average
The average EPC rating for a home in the UK and Wales is band ‘D’ (rating 60).
Consequently, millions of properties could be under this band and could therefore be unable to be let out, be sold or mortgaged.
What’s more is that not all landlords are aware of these coming changes, and so could cost them even more when the changes are actualised.
It is not only advisable to make changes to comply with these changes, but also because it saves you money by creating a more energy-efficient property.
Prepare Your Property
There are many changes, small and large that can be made to improve the EPC rating of an abode, like increasing the width of the loft insulation, draught-proofing, switching to a condensing boiler or upgrading to double-glazing windows.
A higher EPC rating is also a very desirable attribute for a property to have through the eyes of prospective buyers and more so to portfolio landlords.
Further Research
Research conducted by Landbay shows that 53% of portfolio landlords (those with 10 properties or more) said that they would consider investing in a property rated ‘D’ or lower, and then raise it to a ‘C’.
Approximately 32% of landlords with four to ten properties would do the same and only 20% with non-portfolio landlords.
Effects on Properties
On top of a property being rendered unsellable, un-buyable or un-mortgageable, there is possible for a landlord to be sanctioned for failing to reach the new minimum EPC standard.
Local authorities can fine up to £5000 for failure to meet the minimum EPC threshold under the minimum energy efficiency standards (MEES) regulations.
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Learn More about EPC ratings on the Landlord Academy
