Energy efficiency standards for rentals: What landlords can start planning now

The 2030 energy efficiency deadline for rental properties is confirmed. Here’s what landlords should be doing before then.

The government’s Warm Homes Plan and its response to the private rented sector energy efficiency consultation, published on 21 January 2026, confirmed the direction that landlords in England and Wales have been anticipating for several years. Privately rented homes will be expected to meet the equivalent of EPC Band C by 1 October 2030.

The current enforceable minimum remains EPC Band E, unless a valid exemption applies. The higher standard is confirmed government policy, although further legislation is still needed to bring the new requirements into force. The government intends for the updated regulations to take effect in 2027, ahead of the 2030 deadline.

For landlords with well-maintained, recently upgraded properties, this may require relatively little action. For those with older or less energy-efficient properties, understanding the gap between the current rating and the future standard makes early planning a sensible approach.

What is confirmed?

The new compliance date of 1 October 2030 will apply to both new and existing tenancies. A previously proposed earlier deadline for new tenancies has been dropped, meaning there will be one date for all properties within the scope of the regulations.

The government has also confirmed a £10,000 cost cap per property. This sets the maximum amount landlords will generally be expected to invest in qualifying energy efficiency improvements to meet the new standard. Where the required standard cannot be achieved within the applicable cap, landlords will be able to register a cost-cap exemption, subject to the relevant requirements. This exemption will last for 10 years.

There are additional exemptions and adjustments, including a provision for lower-value properties where the applicable spending limit may be reduced to 10% of the property’s value. The maximum civil penalty for non-compliance is also set to increase to £30,000 per property, per breach, although the legislation needed to introduce the strengthened enforcement arrangements is still progressing.

One important detail from the January response is that qualifying improvement costs incurred from 1 October 2025 can count towards the first £10,000 cost cap. Work carried out now may therefore contribute towards a landlord’s future compliance position. Keeping invoices and records of improvements will be important.

The current landscape of rental properties

Around half of privately rented homes in England already have an EPC rating of Band C or above. The latest English Housing Survey figures for 2024 put this proportion at 48%, with a further 37% rated Band D.

For some properties, moving from D to C may involve targeted improvements rather than major renovation. Measures such as improving loft insulation, filling cavity walls or upgrading heating controls may help, depending on the property’s construction and existing features. The recommendations in an individual property’s EPC report provide a useful starting point, although the actual improvements needed will vary.

For properties rated E or below, the work required may be more extensive, making early investigation particularly worthwhile. Assessments, quotes and improvement work can take time to arrange, and landlords who start looking at their options well ahead of the deadline will have more time to compare solutions and plan expenditure.

It is worth remembering that an improvement which benefits one property may not be suitable for another. The best approach will depend on the building, its existing heating and insulation, and the recommendations made by a qualified assessor.

The new EPC framework

The January 2026 government response also confirmed that future compliance will be assessed using reformed EPCs and a dual-metric approach.

The first requirement will focus on fabric performance, which measures the thermal efficiency of the building itself. Landlords will then have a choice of meeting a secondary standard based on either the heating system or smart readiness.

The government has also confirmed a transition arrangement for properties that already achieve an EPC rating of C or above under the existing Energy Efficiency Rating (EER) system. If a property has a qualifying EPC showing C or above before 1 October 2029, it will be recognised as compliant with the new standard until that certificate expires or is replaced.

For properties that do not have a qualifying existing EPC by that date, landlords will need to use the new assessment framework when planning improvements. The intention is to provide updated EPC recommendations so that landlords can make decisions based on the measures relevant to the new requirements.

The precise band boundaries and assessment details under the new metrics are still being developed. Landlords should therefore avoid assuming that a property currently rated C will automatically meet every aspect of the future standard unless it qualifies for the transition arrangement.

The steps worth taking now

Although the 2030 deadline is still several years away, there are some straightforward steps landlords can take to understand their position.

• Check current EPC ratings: Confirm the rating and expiry date for each property in your portfolio.
• Review recommendations: For properties below Band C, look at the improvements identified in the EPC report and their estimated costs.
• Keep records: Retain invoices and documentation for energy efficiency work, particularly improvements carried out since October 2025.
• Consider future assessments: If a property has an expired EPC or significant improvements have been made, consider whether a new assessment is appropriate.
• Explore funding options: Support may be available through schemes such as the Warm Homes: Local Grant, subject to household, property and local authority eligibility. ECO4 is due to end on 31 December 2026, and availability is likely to be limited as the scheme closes.

Landlords should also remember that grants and funding arrangements have their own eligibility conditions. For example, the Warm Homes: Local Grant is aimed at eligible low-income households in privately owned properties, including rented homes, and landlords may be expected to contribute towards some improvements.

Planning ahead for 2030

The 2030 deadline is confirmed government policy, the £10,000 cost cap has been set, and further legislation is being prepared to implement the changes.

Not every rental property will need significant improvements, but understanding its current energy performance and what may be required in the future is a sensible starting point.

Taking time to review your portfolio, investigate potential improvements and keep up to date with the developing requirements can help landlords plan ahead rather than leave everything until the deadline approaches.

Talk to our lettings team about managing your properties.