What are the latest EPC changes?

Landlords in the UK face a tough regulatory regime when it comes to letting their property, and one area in which regulation seems to grow ever more restrictive is the energy efficiency of dwellings in the private rented sector.

Though the government’s aim is to improve the sustainability standards of the rented housing stock and help lower tenants’ energy bills, for many landlords, this will require additional building works and further expense. Costs for landlords are set to “soar”, said one property consultancy on the 17^th of June.

So, what changes are on the cards?

Standards measurement

One of the most fundamental changes – and one that will affect every single landlord – is how energy efficiency is measured.

Whereas Energy Performance Certificates (EPC) have until now been based on a Standard Assessment Procedure (SAP), future measurements of a dwelling’s energy efficiency will use version 10 of the so-called Reduced Data Standard Assessment Procedure (RdSAP).

Advice from Propertymark on the 29^th of May explained that the new basis for measurement, which came into effect on the 15^th of June 2025, uses revised data inputs, improved assumptions, and certain changes to the structure of the assessment – all designed to produce a more meaningful EPC.

Further changes to the structure of the assessment method are scheduled to be introduced sometime in the future, when a new Home Energy Model becomes the basis for future assessments of domestic energy efficiency.

When do tighter standards come in?

The new standards of measurement become all the more critical because the government continues to aim to raise the minimum EPC rating on dwellings in the private rented sector.

The existing minimum for all such dwellings is an EPC rating of at least an E. Under current plans, by the year 2030, this minimum threshold will be raised to a C – a significant increase in the energy efficiency standard required for all homes in the private rented sector. It has been estimated, for example, that around half of all homes in the private rented sector would currently fail to achieve an EPC rating of C or above.

Widening the EPC compliance net

Further changes to the EPC regulations will see more types of property become subject to energy efficiency assessment and control.

Landlords of Houses in Multiple Occupation (HMOs), for example, will want to take note that, in future, even if only one room in the HMO is let to tenants, then the whole property must have a valid EPC.

More landlords will need to pay closer attention to the forthcoming EPC changes. When the regulations are updated, they will also be extended to more types of let accommodation – including holiday and other short-term lets.

What are the likely cost implications for landlords?

As before, the government proposes to cap the maximum cost of the alterations necessary to bring a dwelling up to any new EPC standards. The proposed new ceiling is £15,000. In addition, there continue to be a number of grants and other funding options available for energy efficiency upgrades to residential property in general.

While tighter EPC regulations are undoubtedly likely to increase expenses for some landlords, therefore, it remains to be seen how severe these will be and whether they will lead to any increase in rents.

Disclaimer:
The information provided in this article is based on our own research and the latest available guidance at the time of writing. Regulations and proposals can change, and implementation timelines may be updated. We recommend that landlords and property professionals seek tailored advice from a qualified expert or consult official government resources before making any decisions based on EPC-related requirements.