As a landlord, one of your biggest responsibilities is keeping your property compliant with regulations while also making it attractive to tenants. Energy efficiency is at the heart of both. A warmer, cheaper-to-run property is easier to let, and with changes coming to the minimum EPC standards, it’s something you can’t ignore.
At the moment, rental properties must have an EPC rating of at least E, but the government is consulting on raising this to C by the end of the decade. While the details are still being finalised, it’s clear the direction of travel is tougher standards, higher cost caps, and stricter enforcement.
The good news? There are plenty of improvements you can make that don’t break the bank and many of them pay for themselves through reduced bills, fewer voids, and higher tenant satisfaction.
What’s Changing with EPC Rules?
Right now, landlords cannot let out a property with an EPC below E (unless a valid exemption applies). For most landlords, this has meant spending up to £3,500 to get a property to the required standard.
The government is looking to go further. The proposed changes include:
Raising the minimum standard to EPC C for new tenancies first, and then all tenancies later.
Introducing new ways of measuring performance, including fabric efficiency, heating performance, and “smart readiness.”
Increasing the spending cap (consultations suggest up to £15,000) before exemptions can be claimed.
Giving councils stronger powers to enforce penalties for non-compliance.
While final dates haven’t been locked in, landlords should expect the changes to begin rolling out from 2028 onwards.
Principles Before You Spend a Penny
Before jumping into upgrades, it pays to plan. A few key principles:
Start with an audit: An EPC gives you a baseline, but a retrofit assessment provides deeper insight.
Pick the low-hanging fruit: Do the cheapest, highest-impact measures first.
Think fabric first: Insulation and airtightness are more effective long-term than just swapping a boiler.
Prioritise payback: Focus on measures that will save you and your tenants money quickly.
Stage your investment: You don’t need to do everything in one go; spreading improvements makes it easier to manage costs.
Cost-Effective Upgrades Landlords Should Consider
Here are some of the most effective, affordable ways to lift your EPC rating and cut bills.
1. Insulation
Loft insulation: Often the cheapest upgrade with the quickest payback. Topping up existing insulation to the recommended depth (270mm) can cost a few hundred pounds but deliver a big EPC boost.
Cavity wall insulation: If your property has cavity walls, filling them can slash heat loss.
Floor insulation: For properties with suspended timber floors, under-floor insulation can stop draughts and cold coming up from below.
2. Draught-Proofing
Sealing gaps around windows, doors, and loft hatches costs very little and improves comfort dramatically. Just be careful not to block essential ventilation.
3. Heating and Controls
Upgrade the boiler: A modern condensing boiler is far more efficient than older models.
Smart thermostats and TRVs: These give tenants better control, prevent overheating rooms, and help reduce wasted energy.
4. Hot Water Efficiency
Insulating your hot water cylinder and pipework is inexpensive but reduces ongoing heat loss.
5. Windows and Doors
Replacing single glazing with double glazing (or upgrading old double glazing) cuts down heat loss and draughts.
Secondary glazing is a cheaper alternative for listed or conservation properties.
6. Renewable Options
Solar PV panels or air-source heat pumps can make a big difference, though they’re more expensive. The government has offered grants in the past (such as the Boiler Upgrade Scheme), so keep an eye on available funding.
How to Plan Improvements Without Overspending
Review your EPC report: It already lists suggested improvements and their estimated impact.
Bundle work: If you’re replacing windows, consider insulation at the same time to avoid paying for scaffolding twice.
Create a timeline: Spread work over several years so you don’t face a big cash outlay all at once.
Check for funding: Local councils, energy suppliers, and national schemes often provide support for insulation and renewables.
Keep records: Evidence of work done is vital if you ever need to claim an exemption.
Why Acting Early Makes Sense
Waiting until the rules change could be costly. Labour and material prices are rising, and if all landlords are forced to upgrade at the same time, demand will spike. Acting now gives you:
Lower costs: Before the inevitable rush pushes prices up.
Less stress: Improvements can be phased in rather than rushed.
Tenant appeal: Properties with cheaper energy bills are easier to let.
Future proofing: Whatever form the final regulations take, you’ll already be well on the way.
Key Takeaways
The shift from EPC E to EPC C is coming — it’s not a matter of if, but when. By starting now, landlords can spread the cost, reduce tenant turnover, and stay ahead of the curve.
You don’t need to spend a fortune. Simple, fabric-first improvements like loft insulation, cavity wall insulation, and smarter heating controls can make a significant difference.
The key is to plan, act early, and think of energy efficiency as both a regulatory requirement and an investment in the long-term value of your property.
Maddie Lancaster is an ARLA qualified letting agent with over 10 years of experience in the UK rental market. Rent East Yorkshire specialises in property management services for landlords across the East Riding of Yorkshire.
Disclaimer: This information is provided for guidance only and does not constitute legal advice. Specific legal advice should be sought for particular circumstances.
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