Another long awaited overhaul to the private rental sector (PRS) is the minimum EPC rating a landlord must have, one inherited and revisited by the current Labour government.
1, What is the current requirement?
Every 10 years PRS landlord need to renew their EPC and must achieve, unless exempt, an E rating. Those that achieve a F or G rating are required to self-fund energy efficiency improvements up to a cap of £3,500 to bring the property up to the E minimum. Agents cannot market a property without an E rated EPC and this certificate needs loading to the property listings.
2, What might happen to the minimum E rating?
As part of the current government’s fuel poverty targets an updated version of the 2020 consultation has been launched. The EPC rating will still rise from E to C with a phased introduction – all new tenancies from 2028 and all tenancies by 2030.
3, Could anything else change?
Yes, the 2025 consultation goes further and asks whether the government
-should increase the maximum required investment for PRS landlords to £15,000 per property
-require PRS landlords to register an exemption if expenditure exceeds £15,000
-should introduce an affordability exemption that lowers the cost cap to £10,000 for some properties
-should extended these requirements to include short-term lets
-what regulatory measures could be used to brought enforce the installation of smart meters
4, Can landlords have their say?
Yes, the government’s consultation closes on 2nd May 2025. PRS landlords can visit their consultation webpage Improving the energy performance of privately rented homes: 2025 update – consultation document and have your say.
We will bring more blogs in the weeks and months to come. Sign up to our industry newsletter by visiting our website (bottom right hand corner) Alexandre Boyes – Tunbridge Wells Estate Agents and Letting Agents. As with all Alexandre Boyes blogs they are intended to give a general overview of a topical issue and should be not relied on for formal purposes. Posted 18th March 2025
