The Government has begun consulting on its plans to force landlords to upgrade their properties to a minimum EPC band C by 2030.

Deputy PM Angela Rayner claims it will cut tenants’ energy bills by £240 annually and lift 500,000 households out of fuel poverty.

“For far too long we have seen too many tenants plagued by shoddy and poor conditions,” she said.

Rayner announced the measures as part of Labour’s ‘warmer homes and cheaper bills’ initiative.

The legislation includes a cost cap of £15,000 per property, although, as Research by Benham and Reeves suggests upgrades will cost landlords an average of £7,396 per property and £7,807 in London, it may not help much. There will be a lower cap of £10,000 but only for those properties on lower rents or council tax bands.

Currently, 48% of private rented homes already meet EPC C standards. Energy Secretary Ed Miliband said the changes would ensure “all private landlords are investing in their properties, building on the good work of many to upgrade their homes.”

Before making improvements, many landlords may first want to see what comes out of the Government’s EPC consultation. It runs until 26 February 2025 and its recommendation will be implemented in the second half of 2026.

Industry reaction

Ben Beadle, Chief Executive of the National Residential Landlords Association

“We all want to see rented homes as energy efficient as possible, but that will require a realistic plan to achieve this.

“The chronic shortage of tradespeople to carry out energy efficiency works needs to be addressed, alongside a targeted financial package to support investments in the work required as called for by the Committee on Fuel Poverty and Citizens Advice.

“Importantly a realistic timetable is needed if the 2.5 million private rented homes, which will not currently meet the Government’s proposed standards, are to be improved.”

Timothy Douglas, Head of Policy and Campaigns at Propertymark

“This consultation and the proposals to extend the Minimum Energy Efficiency Standards for the private rented sector in England and Wales have long been anticipated.

“However, [Ministers] must realise it’s not about fighting landlords and people on climate change; it’s about creating realistic and achievable energy efficiency targets that acknowledge the challenges our housing sector faces in adapting and making the necessary improvements in an affordable way.

“Landlords are part of the solution, but the UK Government must listen and support them as housing providers. Failure to do so alongside adequate and sustained grant funding, will only mean that property will not be available to rent, and tenants lose out when there is huge demand for rented property across the country.”

Daryl Norkett, Director of Real Estate Proposition at Shawbrook

“With changes to the rules, the hope and expectation is that the latest consultation on EPC rates will provide a more accurate assessment of improvements made to older properties.

“Under the current system, many of these properties are effectively excluded from achieving higher EPC ratings, even with significant upgrades. Modernised rules should aim to encourage and reward progress, such as the adoption of greener heating solutions, which are vital for driving overall energy efficiency.”

Rob Wall, Assistant Director, British Property Federation

“It will be challenging for all properties in the private rented sector to achieve EPC C by 2030.

“We would like to have seen recognition of the time lost reflected through a gentler trajectory, to provide the sector with sufficient time and support to carry out necessary work.”

Read the consultation details.