What is an EPC?

An Energy Performance Certificate rates the energy efficiency of a property on a scale from A (most efficient) to G (least efficient). It also includes recommendations for improving the property's energy efficiency.

Current Requirements

Under the Minimum Energy Efficiency Standards (MEES):

  • Since April 2020, it is illegal to let a property with an EPC rating of F or G
  • The minimum acceptable rating is Band E
  • EPCs are valid for 10 years
  • You must provide the EPC to prospective tenants before they view the property
  • The EPC must be included in any property advertisement
  • You cannot serve a valid Section 21 notice without having provided an EPC to the tenant

From 1 May 2026 (Renters' Rights Act 2025)

The Renters' Rights Act 2025 introduces several changes affecting EPCs:

National Landlord Database: You must upload a valid EPC to the database. Properties cannot be marketed or let without valid certification on the database.

Future EPC requirements: The government is consulting on raising the minimum standard to EPC Band C:

  • By 2028 for new tenancies
  • By 2030 for all existing tenancies
  • A proposed cost cap of £15,000 for required improvements
  • New EPC methodology expected from 2026

While the specific dates are subject to consultation, the direction of travel is clear - landlords should plan for higher energy efficiency standards.

Penalties for Non-Compliance

Current penalties:

  • Fines up to £5,000 per property for letting below minimum standard
  • Publication on a public register of non-compliant landlords
  • Inability to serve Section 21 notices without a valid EPC

From 1 May 2026:

  • Civil penalties up to £7,000 for initial breaches, £40,000 for serious/repeated breaches
  • Inability to register on the National Landlord Database without valid EPC
  • Restrictions on serving possession notices if not properly registered

Exemptions

Some properties may be exempt from MEES requirements:

  • Listed buildings where improvements would unacceptably alter character
  • Properties where all cost-effective improvements have been made
  • Properties where improvements would cost more than £3,500 (current cap - expected to increase to £15,000)
  • Properties where third-party consent cannot be obtained

Exemptions must be registered on the PRS Exemptions Register and typically last 5 years.

The Complexity

Understanding EPC ratings, identifying cost-effective improvements, navigating exemptions, and preparing for future regulatory changes requires ongoing attention and expertise. The transition to higher standards and new EPC methodology means landlords need to plan strategically now.

Need Help With EPC?

With EPC requirements set to tighten to Band C by 2030 and new methodology from 2026, now is the time to plan. We advise on current compliance, help you prepare for future standards, and manage database registrations. Get in touch to learn more.