Energy Performance Certificates have been important in the rental market since 2008; however, many landlords have treated them as a box-ticking exercise.
Under the UK Government’s Minimum Energy Efficiency Standards (MEES), all private rental properties in both England and Wales must achieve an EPC rating of at least a C or above by October 2030.
Right now, the legal requirement is E, meaning most landlords are compliant, but won’t be for much longer.
At the moment, there are currently 3.38 million rental properties in England and Wales not meeting the 2030 EPC C standard, with the current cost to update a property to EPC averaging at around £7,480.
Bob Jones, Specialist Property Finance Advisor from Pure Property Finance, says that:
“Most landlords still think of EPCs as a compliance footnote, something to sort out as we get closer to the deadline. However, that mindset is going to be far more expensive than a deadline with something as soon as possible.
“The rules on how properties are assessed have changed this year, and lenders are already factoring energy performance into the rates and loan-to-value ratios they offer.
“Landlords who act now will access better finance and avoid a very crowded, and very costly, upgrade when we get to 2028 and 2029.”
This year, the way EPCs are calculated is changing. From 2026, new certificates use a multi-metric format, assessing fabric performance such as insulation, windows, airtightness, heating system efficiency and smart readiness.
This means that landlords whose properties are fine under the old method of scoring may be in for a nasty surprise under the new assessment rules.
The evidence suggests that the majority of landlords have not yet started planning for the new changes. The direction of travel from lenders, insurers and tenants is already clear: higher EPC ratings attract better mortgage terms, faster lettings, and stronger rental yields.
Those who act early will benefit. Those who delay face a narrowing window, higher contractor costs as demand builds, and lenders increasingly factoring EPC performance into their risk assessments.
Bob Jones adds:
“The numbers aren’t lying, unfortunately, millions of landlords are sitting on properties that may become increasingly difficult to mortgage, let and sell if nothing changes. What most people don’t realise is that there are funding options available right now, from government grants to specialist refurbishment finance, that can make this far more manageable than landlords fear.
For landlords and investors that have five or ten properties in their portfolio, this figure is going to be in the tens of thousands if not acted on quickly.”
However, Bob Jones warns landlords not to worry, as there’s still time to act before the 2030 deadline. He discusses what landlords should be doing right now:
“The first thing any landlord should do is get a fresh EPC under the new 2026 framework, as older certificates may not reflect how your property will actually score today, particularly if you have good insulation but an ageing boiler.
From there, it’s about understanding your funding options. Grants like ECO4 and the Boiler Upgrade Scheme can cover the majority of costs for eligible properties, and where there’s a gap, specialist refurbishment finance and bridging loans can get works moving fast.
When it comes to the upgrades themselves, start with loft and cavity wall insulation as it’s the best return on investment and the quickest route to a higher rating.
Heat pumps, glazing and solar go further still, and lenders are already rewarding those properties with better rates and higher LTVs.
Above all, don’t wait. The legislation will firm up, the contractors will get booked out, and the landlords who acted early will be the ones with lower bills, better finance and no last-minute panic.”
