Claire Pile, Head of Residential Lettings, comments:
As part of the Governments drive to increase Energy Efficiency within the Private Rented Sector (PRS) there had been the proposals that any new property let, from 2028, must have an Energy Performance Certificate (EPC) rating of C or above. This deadline has now been pushed back to 2030 in the latest update to the ‘Reforms to the Energy Performance of Buildings regime’.
In addition, there has also been an announcement confirming a reduction in the cost cap. The proposed spending cap for PRS landlords has been reduced from £15,000 to £10,000. This change addresses concerns that a higher cap could lead to landlords leaving the market or lead to rent increases, ultimately disadvantaging tenants. Transitional rules will now allow improvements made from October 2025 to count towards the spending cap.
Properties achieving EPC C before October 2029 will also be deemed compliant until the certificate expires.
Further EPC reform
In addition, it was also confirmed that the current EPC rating will be replaced with four clearer metrics (energy cost, fabric performance, heating systems and smart readiness) with the aim of provider ‘clearer and more useful information to consumers.’ Implementation of this new metric is expected from October 2026.
The 10-year EPC validity period will remain with the aim of avoiding landlords making unnecessary expenditure.
In conjunction, the Government has also released it’s Warm Homes Plan which outlines measures to reduce energy bills, fuel poverty and accelerate home improvements through a combination of investment, financing, and updated standards.
The Boiler Upgrade Scheme (BUS) has also been expanded with:
£7,500 grant towards hydronic heat pumps
The introduction of £2,500 grants for air to air hat pump and batteries for central heating.
Grants for up to £5,000 for biomass boilers for eligible rural properties.
This broader scope reflects feedback Propertymark submitted to DESNZ that the BUS needed to be more ambitious to help overcome barriers landlords face.
Although the delay has been announced and could be subject to further change we would continue to advise landlords to consider the improvements that can be made, whether at the point of renewing the EPC, during refurbishment or when the opportunity arises to consider an alternative, more energy efficient product i.e. boiler replacement.
There still remains much to be clarified to include the review of the existing exemptions as well as further support and guidance for landlords, however, in the meantime, if you would like advice on the changes and how these may affect you then please contact your local Stags office for further information.
Claire Pile, Head of Residential Lettings, comments: 
