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If you’re a private landlord in England or Wales, understanding your legal responsibilities around EPCs forrental properties is essential. Energy regulations have tightened in recent years, and with further updates expected beyond 2026, staying compliant is critical to protecting your rental income.
This fully updated guide explains what an EPC is, the current Minimum Energy Efficiency Standards (MEES), penalties, exemptions, how to improve your rating, and what landlords should prepare for in 2026 and beyond.
For a professional EPC assessment for your rental property in Sussex or Surrey, get in touch with our experienced team today.
What is an Energy Performance Certificate?
An Energy Performance Certificate (EPC) measures the energy efficiency of a property and gives it a rating from A (most efficient) to G (least efficient).
An EPC provides:
- An overall energy efficiency rating (A–G)
- An environmental impact rating (carbon emissions)
- Estimated energy costs for heating, lighting and hot water
- Recommendations for improving efficiency
- Potential cost savings after improvements
EPCs have been a legal requirement in England and Wales since 2008. As a landlord, you must provide a valid EPC to prospective tenants before marketing the property.
Minimum EPC requirements for landlords (2026 update)
Under the Minimum Energy Efficiency Standards (MEES) introduced by the UK Government:
- Since April 2018 – All new tenancies must have an EPC rating of E or above
- Since April 2020 – This applies to all existing tenancies
- As of 2026 – The legal minimum remains an EPC rating of E
These regulations fall under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.
What about future changes?
The UK Government has proposed increasing the minimum EPC rating for rental properties to C by 2030, although legislation has not yet been formally implemented as of early 2026.
Landlords are strongly encouraged to start planning upgrades now, as:
- Energy standards are tightening nationally
- Mortgage lenders are increasingly factoring EPC ratings into lending decisions
- Tenants prioritise lower energy bills
- Properties with low ratings may become harder to let or refinance
Future-proofing your investment is becoming just as important as current compliance.
What happens if my property has an EPC rating below E?
If your rental property has an EPC rating of F or G, you cannot legally let it unless:
- You have improved the rating to E or above
- You have registered a valid exemption
Local Authorities enforce these rules and can issue penalties or prohibit letting until improvements are made.
Penalties for non-compliance
Failure to comply with MEES means your property could be deemed unfit for rental, and can result in fines of up to £5,000 per property.
Current penalty scale:
- £1,000 – Providing false or misleading information to the PRS Exemptions Register
- £2,000 – Failing to comply with a compliance notice
- £4,000 – Letting a non-compliant property for under 3 months
- £5,000 – Letting a non-compliant property for over 3 months
Non-compliant landlords may also be publicly listed on the exemptions register.
Are there any exemptions?
Yes, but exemptions must be registered and are only valid for 5 years.
Common exemptions include:
- All recommended improvements have been made, but the property still does not reach E
- Required third-party consent (e.g. lender, freeholder, tenant) has been refused
- Improvements would reduce the property value by 5% or more
- Certain listed buildings (where compliance would unacceptably alter character)
Exemptions must be formally registered on the PRS Exemptions Register as they are not automatic.
How long does an EPC last?
An EPC is valid for 10 years, unless:
- Major energy-related renovations are completed
- You choose to commission a new assessment to reflect improvements
If you’ve upgraded insulation, replaced a boiler or installed renewables, it is often worth reassessing to secure a higher rating.
How to get an EPC for a rental property
To obtain an Energy Performance Certificate for landlord compliance, you must instruct an accredited energy surveyor who will come to the property to assess it. They will look at the performance of energy-related features, including:
- Boiler and heating system
- Hot water cylinder
- Loft and wall insulation
- Windows and glazing
- Lighting
- Renewable technologies
You will then receive your certificate and recommendation report. The process typically takes 30–60 minutes, depending on property size.
How to improve your EPC rating
Improving your EPC rating not only ensures legal compliance but can significantly increase rental appeal and long-term asset value. Making energy efficiency improvements can include:
Low-cost improvements
- Switch to LED lighting throughout
- Install thermostatic radiator valves
- Add hot water cylinder insulation
- Draught-proof doors and windows
Mid-range improvements
- Increase loft insulation (to 270mm recommended depth)
- Install cavity wall insulation
- Upgrade heating controls
- Replace inefficient glazing
Major energy efficiency upgrades
- Install a modern condensing boiler
- Upgrade to an air source heat pump
- Add solar PV panels
- Solid wall insulation
Learn more about improving your energy efficiency rating
Why improving your energy rating makes financial sense
Improving your EPC offers several long-term benefits:
1. Higher tenant demand
Tenants are increasingly comparing properties based on energy efficiency due to rising energy costs.
2. Lower running costs
Efficient properties cost less to heat, reducing arrears risk.
3. Stronger capital value
Energy-efficient homes are more attractive to buyers and lenders.
4. Future regulation protection
If the minimum requirement rises, early upgrades avoid rushed and expensive retrofits later.
Preparing for 2030: Why landlords should act now
Although the minimum EPC requirement in 2026 remains E, the direction of travel is clear: higher efficiency standards are on the way.
With proposed targets pushing towards EPC C by 2030:
- Older properties may require staged upgrades
- Mortgage providers may impose stricter EPC lending criteria
- Energy inefficient homes risk becoming stranded assets
Landlords who act early spread costs over time and protect portfolio value.
Staying compliant as a landlord in 2026
Complying with EPC standards for landlords is more than a legal checkbox, it’s now a core part of property investment strategy.
To summarise:
- Minimum legal rating in 2026: E
- EPC valid for: 10 years
- Fines for non-compliance: up to £5,000
- Future target likely: C by 2030
- Exemptions must be formally registered
Book an EPC assessment with Falcon Energy
If you are unsure about your property’s rating or need advice on improving compliance, booking a professional EPC assessment is the first step toward securing your rental income and future-proofing your investment.
Our qualified team can assess your property and certify it with a new rating if required. If your property falls below an E rating, we can create a plan to improve its efficiency to help you become legally compliant. Call us on 01403 253439 or fill out our online form.
Frequently Asked Questions
Properties rented out for less than 4 months per year may be exempt. However, many short-term or holiday lets still require an EPC if they are marketed for rent and meet minimum occupation thresholds.
There is no automatic right to increase rent after improving an EPC rating. Rent increases must comply with the tenancy agreement terms and current rental legislation. However, improved energy efficiency can justify stronger market positioning.
The cost of an EPC varies depending on property size and location, but typically ranges between £60 and £120 for a standard residential property in England and Wales.
This article provides general regulatory guidance and does not constitute legal advice. EPC obligations and exemptions should always be assessed on a case-by-case basis.