Understanding EPC Ratings

An Energy Performance Certificate evaluates a property's energy efficiency, rating it from A (most efficient) to G (least efficient). Currently, the minimum standard for rental properties is an E rating, but this will rise to C by 2030.

What This Means for Landlords

Many rental properties currently fall below the new standard, requiring significant investment to upgrade. Government estimates suggest an average investment of £6,864 per property to achieve compliance.

How to Prepare and Stay Compliant

Get an EPC Assessment – The first step to improving an EPC rating is to conduct a thorough assessment. A recent survey conducted by epIMS reveals that 95% of landlords are unaware of the EPC rating of their property. 

Landlords need to understand their exact point score, not just the overall grade. This is because many properties may only be a few points off from higher ratings and may not require heavy investment.

Typically, this assessment takes around 30 to 40 minutes and provides a detailed report on the current energy efficiency of the property. It'll show what needs to be fixed and give a clear start for any needed improvements.

 

Top Tip: To get the most accurate assessment possible, make all parts of the property accessible to assessors, including the roof and other hard-to-reach places.

 

Prioritise low-cost improvements (for now) – As changes to the EPC metrics rating system are being introduced in the latter half of 2026, landlords are best served focusing on small, incremental improvements until there's more clarity.

There are many affordable upgrades that can make a high impact on your ratings. For instance: 

Going from no roof insulation to having 270mm insulation can improve your rating by 10 to 15 points

Installing ‌wall cavity insulation, costing £350 - £500, can increase your EPC score by 5 to 10 points

Adding hot water cylinder insulation can increase the rating by 1.5 to 2 points

Switching to low-energy LEDs could increase the rating by 1 to 2 points

These low-cost changes can easily push properties from one rating band to another without spending a lot. Plus, by spreading costs over a longer period of time, upgrades suddenly become more palatable. 

 

Top Tip: Ensure that you always take photos of property improvements, as unrecorded upgrades may not be acknowledged later.

 

Explore Renewable Energy Sources – Incorporating renewable energy sources can improve EPC ratings while also reducing the property’s carbon footprint over time. 

A 16-panel solar system, for example, can add an average of 10 points to the EPC score, while a large wind turbine can contribute 7 points. 

While these upgrades may involve a larger initial investment, they can help future-proof the property and make a substantial difference in meeting EPC requirements.

 

What support is the Government offering to help landlords comply?

The Government plan includes a Warm Homes: Local Grant to help private landlords fund EPC upgrades. This grant will begin delivery in 2025 to English private landlords who have tenants on low incomes or properties rated EPC D to G. 

Grants like this, along with other schemes such as the Energy Company Obligation (ECO) and the Great British Insulation Scheme, can significantly ease the financial burden of energy efficiency improvements. 

Depending on the program, landlords may qualify for funding that covers up to £15,000. Eligible energy-saving improvements include: 

 

Solar PV panels - these generate free electricity for the property and allow landlords to sell excess electricity back to the National Grid via the Smart Export Guarantee, creating an additional income stream

Air Source Heat Pumps (ASHPs) - these provide heating and hot water and are often paired with solar panels for a complete energy-efficient solutionElectric storage heaters - it's suitable for smaller properties like flats where ASHP installation may not be feasible

Insulation upgrades - this includes loft insulation, cavity wall insulation‌, and both internal and external solid wall insulation to reduce heat loss

However, to qualify for these grants, properties must meet specific conditions: 

 

Properties rated D, E, F, or G are eligible, while those already rated A, B‌, or C are not 

Grants are prioritised for properties using oil, LPG, coal, wood‌ , or electric heating; homes with mains gas heating may only qualify for insulation upgrades 

The tenant must have a household income below £36,000 annually or have a long-term health condition, such as asthma or arthritis, verified by a GP

Landlords need to confirm that any grant assistance will not exceed the cap of £315,000 over three years, as per the Minimum Financial Assistance threshold

Landlords must agree not to raise rent, and they also have to partake in surveys or evaluations conducted by the Department for Energy Security and Net Zero

A limited amount of funding is available for local authorities and only certain areas in England will receive funding for this grant.

 

Need help navigating EPC regulations? Unsure where to start with EPC improvements? Our specialist lettings team is here to guide you - get in touch today!