EDITORIAL GUIDE
EPC Regulations for Landlords UK
Current and proposed minimum energy efficiency standards for rental properties in England and Wales.
TL;DR
- Rental properties in England and Wales must currently have a minimum EPC rating of E to be legally let.
- The government has proposed raising the minimum to C for new tenancies by 2028 - confirm current status with GOV.UK.
- Landlords who let properties below the minimum EPC standard face fines of up to £30,000.
- Improving EPC ratings through insulation and energy upgrades can affect insurance rebuild cost calculations.
Current Minimum EPC Requirements
The Minimum Energy Efficiency Standards (MEES) regulations require residential rental properties in England and Wales to have a minimum EPC rating of E before they can be legally let to new tenants or have existing tenancies renewed. This has applied to all tenancies since April 2020. Letting a property with an F or G EPC rating without an applicable exemption can result in a local authority imposing financial penalties of up to £30,000 per property.
Proposed Changes to Minimum Standards
The government has consulted on raising the minimum EPC standard for rental properties to C - first for new tenancies, then for all tenancies. The proposed timeline and requirements have been subject to revision; landlords should check the current position with GOV.UK and HMRC as the regulatory position may have changed since this guide was published. The proposed changes would require significant capital investment from landlords with older, less efficient properties.
Exemptions to MEES
Landlords who cannot achieve the minimum EPC rating cost-effectively can apply for an exemption. The main exemptions include: where the cost of improvements to reach the minimum rating would exceed the cost cap (currently £3,500); where all recommended improvements have been installed but the minimum rating is still not achievable; and for listed buildings where required works would unacceptably alter the character of the building. Exemptions must be registered on the PRS Exemptions Register.
EPC Improvements and Insurance
Improving a property's energy efficiency through insulation, window replacement, or heating system upgrades changes the property's fabric and may affect the buildings insurance sum insured. Notify your insurer of significant structural improvements. Newly installed renewable energy systems - solar panels, heat pumps - should be added to the policy schedule to ensure they are covered.
Related Guides
Disclaimer
This guide is for general information only and does not constitute financial or insurance advice. Kaeltripton.com is not regulated by the FCA. Always read policy documents in full before purchasing cover.
Sources
Frequently Asked Questions
What happens if I let a property with an F or G EPC?
Letting a residential property with an F or G EPC rating without a registered exemption is a breach of MEES regulations. Local authorities can impose civil penalties of between £2,000 and £30,000 depending on the duration of the breach. The local authority can also issue a compliance notice requiring remedial action. The penalty notice is recorded and may affect your ability to obtain landlord insurance at standard terms.
Does an EPC affect landlord insurance?
EPC rating does not directly affect the cost or availability of landlord insurance. However, the condition of a property - which often correlates with EPC rating - can affect claims. Poorly insulated properties with older heating systems may experience higher frequency of escape of water claims in cold weather. Landlords who maintain their properties in good condition and to current energy standards typically have better claims records.
