EPC regulations and the private rented sector: what's coming in 2027-2030
Energy efficiency in rental properties has been a slow-burning topic (no pun intended) for years, but it's about to get very real for landlords and agents. The government's proposals for tighter EPC requirements in the private rented sector have been through various iterations, and while the exact timeline has shifted a few times, the direction of travel is clear: properties that don't meet minimum energy efficiency standards will eventually become unlettable.
Here's what we know, what we don't know, and what landlords should be doing now.
Where things stand today
Since April 2020, all privately rented properties in England and Wales must have an EPC rating of E or above. Landlords who let properties below this standard face fines of up to £5,000 per property. There are some exemptions (listed buildings, properties where all cost-effective improvements have been made, etc.), but the baseline requirement is clear.
That E rating is about to go up. The question is: how far, and how fast?
The proposed changes
The government has signalled its intention to raise the minimum EPC rating for rented properties to C. The original proposal was to require this for new tenancies by 2025 and all tenancies by 2028, but that timeline has slipped. As of late 2025, the latest indication is:
- New tenancies: EPC C required from 2027 (provisionally)
- All tenancies: EPC C required from 2030
- A spending cap on improvements - landlords won't be required to spend more than a specified amount (likely £10,000) on energy efficiency upgrades
There's also talk of reforming the EPC methodology itself, which has been criticised for being inconsistent and not reflecting real-world energy usage. Any methodology changes could significantly affect which properties meet the threshold and which don't.
How many properties are affected?
This is the alarming part. According to government data, roughly 55% of privately rented properties in England currently have an EPC rating below C. That's millions of properties that will need upgrading, and a lot of landlords who will need to spend money they may not have budgeted for.
The most common improvements needed are loft and cavity wall insulation, double glazing and upgraded boilers. For many properties, these are relatively straightforward and affordable. For others - older homes, solid-wall construction, listed buildings - the costs can be substantial and the options limited.
What landlords should be doing now
Our advice to landlords and the agents who manage their properties:
- Check the current EPC rating of every property in your portfolio. If you don't already know it, find out. EPCs are valid for ten years and are publicly searchable on the government's EPC register.
- For properties rated D or below, get a quote for improvements now. Demand for insulation installers and energy assessors is going to spike as the deadlines approach. Getting ahead of the rush will almost certainly save money and hassle.
- Factor upgrade costs into your financial planning. A landlord who needs to spend £5,000–£10,000 on energy efficiency improvements needs to know about it now, not six months before the deadline.
- Consider the long-term picture. More energy-efficient properties command higher rents, attract better tenants and have lower void periods. The improvements aren't just a compliance cost - they're an investment in the property.
What this means for referencing
Strictly speaking, EPC ratings don't directly affect the tenant referencing process. But they do affect the quality and desirability of the properties your landlords are letting, and they affect the conversations you'll be having with landlords about their portfolios. Some landlords may choose to sell rather than upgrade, which could reduce the stock of available rental properties and push rents higher - which in turn affects tenant affordability.
It's one of those industry shifts that touches everything, even if it's not in our direct lane. We'll keep you updated as the regulations firm up.