The private rented sector has just over four years to get every property to EPC band C. That is 1.9 million homes currently rated D or below, according to government data. For the 4.6 million households renting privately in England alone, the clock is ticking louder than any boiler.
The deadline, confirmed by the Department for Energy Security and Net Zero last year, requires all new tenancies from 2028 to have an EPC of C or above. Existing tenancies follow by 2030. As reported by Just Landlords, the key considerations for landlords include cost, timing, and the risk of void periods if compliance is missed.
Who qualifies, and who doesn’t
The rules apply to all privately rented properties in England and Wales. Scotland already requires EPC C from 2025 for new tenancies. Exemptions are narrow: a property can be exempt if the cost of recommended improvements exceeds £3,500 (including VAT) and the cheapest package still leaves it at band D. That exemption must be registered on the PRS Exemptions Register and lasts five years. There is also a fabric-first exemption for solid-wall properties where internal or external insulation is not feasible, but only if an independent surveyor confirms it.
The catch is that exemptions do not mean landlords can ignore the problem. They must still install any measures that cost less than the cap, such as loft insulation or draft-proofing. And once a property changes hands, the new landlord must reassess compliance from scratch.
What it costs a typical 3-bed semi
The Energy Saving Trust estimates that lifting a 1950s semi-detached house from EPC D to C typically costs between £5,000 and £12,000. The breakdown: cavity-wall insulation (£700–£1,500), loft insulation top-up (£300–£500), double glazing (if not already fitted, £3,000–£6,000), and a modern gas boiler or heat pump (£2,500–£7,000). For solid-wall homes, the bill can hit £15,000.
Grants help. The ECO4 scheme covers insulation and heating upgrades for low-income households, but landlords can also access the Boiler Upgrade Scheme (£7,500 off a heat pump) and local authority top-up funds. Ofgem administers ECO4; applications go through approved installers. Landlords should check if their tenant qualifies for ECO4, if so, the landlord pays nothing for fabric measures.
Yet the £3,500 cost cap per property, set in 2020, has not been updated for inflation. The Residential Landlords Association points out that a heat pump alone costs more than twice that. The government has promised a review, but no date is set.
The tenant’s view, and the wider market
For tenants, a warmer, cheaper-to-heat home is the prize. A property moving from EPC F to C can cut heating bills by £800–£1,200 a year, according to National Energy Action. That matters when the price cap is rising again in October.
But there is a risk. If landlords cannot afford upgrades, some will sell up rather than comply. A 2023 survey by the NRLA found 12% of landlords planned to exit the sector because of EPC rules. Reduced supply pushes up rents for the remaining properties. The government’s own impact assessment acknowledged a potential 2–3% rent increase in the short term.
The other unspoken risk is that tenants in sub-C properties may face eviction before the deadline, as landlords decide not to renew tenancies rather than upgrade. Shelter has warned of a wave of ‘no-fault’ Section 21 notices in 2027–28.
What this misses is the interaction with the Future Homes Standard, which from 2025 will ban gas boilers in new builds. The rental sector is being asked to retrofit at the same time as the construction industry shifts to heat pumps and higher fabric standards. Supply chains for insulation materials and heat pump installers are already strained. The Heat Pump Association reports a 40% increase in installer registrations in 2024, but capacity remains below what is needed to retrofit 1.9 million homes in four years.
What landlords should do now, and by when
First, check your EPC register entry. If the rating is D or below, get a new assessment that includes a ‘cost-optimal’ improvement plan. Second, apply for ECO4 funding if any tenant is on benefits, the landlord pays nothing for eligible measures. Third, budget for the gap. The typical cost after grants is £3,000–£8,000 per property.
For properties where the cheapest upgrade path still leaves band D, register an exemption before the first new tenancy after 2028. The exemption lasts five years, but the property must be reassessed at renewal.
Households renting privately should ask their landlord for the EPC and a timeline for upgrades. If the property is below C, the landlord is not legally required to improve it yet, but from 2028, they will be. Tenants can also contact their local council’s private renting team if the property is cold or damp; the Homes (Fitness for Human Habitation) Act already requires safe and healthy conditions.
Frequently Asked Questions
No, not for a new tenancy. Existing tenancies can continue until 2030, but if a tenant moves out and a new one moves in after 2028, the property must have an EPC C. The only exception is if a valid exemption is registered, which requires proof that the cheapest improvement package still leaves the property at band D or below.
The main grant is ECO4, which covers insulation and heating upgrades for properties where the tenant is on a low income or benefits. Landlords pay nothing for eligible measures. The Boiler Upgrade Scheme offers £7,500 off a heat pump, but this is a grant for the homeowner or landlord, not a zero-interest loan. Local authorities may also offer top-up funding through the Home Upgrade Grant.
