Overview
Two things are true at once in the private rented sector in England and Wales, and most coverage blurs them. The law today sets a minimum of EPC band E. Separately, the government's response of 21 January 2026 to its consultation on private rented homes set out the decision to introduce a higher standard, usually described as band C, from 1 October 2030.
The band C standard is stated policy, not law. Government has to take new powers through an Act of Parliament and then lay a statutory instrument amending the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. The target is for that to be in force during 2027. Nothing has been laid yet. An earlier plan to require upgrades to rented homes from 2025 was scrapped in September 2023 without needing a repeal, because it had never become law.
The scale of the job is not in doubt either way. The English Housing Survey 2024 to 2025 found 3% of private rented homes in England in band A or B and 48% in band C, so about half were below band C. EPCGuide's analysis of the full domestic EPC register for England and Wales, 27.6 million certificates covering 19.7 million homes, finds 1,848,327 of the 3,467,781 privately rented homes with an EPC (53.3%) below band C.
What is an EPC?
An Energy Performance Certificate (EPC) rates a property's energy efficiency on a scale from A (most efficient) to G (least efficient). The certificate includes a numerical score from 1 to 100, with higher scores indicating better efficiency. Each letter band corresponds to a range of scores.
EPCs are produced by qualified Domestic Energy Assessors and are valid for 10 years (see how long an EPC lasts for how to check your expiry date). The assessment considers factors including wall construction, insulation levels, heating system efficiency, glazing, and renewable energy installations.
Key Dates and Deadlines
The regulatory timeline has evolved significantly since MEES regulations were first introduced. Here are the dates that matter for landlords:
1 April 2018
MEES regulations came into force for new tenancies. Properties rated F or G could no longer be let.
1 April 2020
MEES extended to all existing tenancies in scope. They must be E-rated or above unless a valid exemption is registered.
June 2025
RdSAP 10 launched, changing how EPCs are calculated. Existing EPCs remain valid.
1 October 2030 (proposed)
The date the government has said it wants a band C minimum to start. It needs primary legislation and then a statutory instrument before it binds anyone.
MEES Regulations Explained
MEES stands for Minimum Energy Efficiency Standards. These regulations, set out in The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, establish the minimum EPC rating required for privately rented properties.
The regulations apply to properties let under an assured tenancy, a regulated tenancy, or a domestic agricultural tenancy. This covers the vast majority of private rented sector tenancies. The Renters' Rights Act 2025 abolished assured shorthold tenancies in England from 1 May 2026, so lets that used to be ASTs are now assured tenancies, which remain in scope.
In force today vs what is proposed
| Requirement | In force today | Proposed, not yet law |
|---|---|---|
| Minimum EPC rating | E | C |
| Minimum score | 39 | Not a single score: set on new-style EPC metrics |
| Cost cap for exemption | £3,500 | £10,000 |
| Maximum penalty | £5,000 | £30,000 |
| Exemption duration | Usually 5 years (6 months for a new landlord, and a tenant-consent exemption can end sooner) | 10 years on three grounds, otherwise typically 5 |
Which Properties Are Affected?
The regulations apply to most privately rented residential properties in England and Wales. Understanding whether your property falls within scope is essential for compliance planning.
In Scope
- Properties let under assured tenancies (including those that were assured shorthold tenancies before 1 May 2026)
- Properties let under regulated tenancies
- Domestic agricultural tenancies
- Houses in Multiple Occupation (HMOs) that are legally required to have an EPC for the whole property
- Properties that have an EPC (required by law to have one)
Out of Scope
- Listed or protected buildings that are legally exempt from needing an EPC because required works would unacceptably alter their character (listing alone does not exempt a building)
- Properties not legally required to have an EPC
- Social housing (excluded from these regulations)
- Holiday lets let under a licence rather than a tenancy, and residential buildings used for less than four months of the year
- Temporary buildings with a time of use of two years or less
The £3,500 Cost Cap
The cost cap in force today is £3,500 including VAT. That is the maximum a landlord is required to spend on energy efficiency improvements before becoming eligible for a cost cap exemption against the band E minimum.
The cap is the most a landlord is required to spend. If even the cheapest recommended measure costs more, a high-cost exemption can be registered with no spend. Otherwise make the improvements you can up to the cap (spend since 1 October 2017 counts towards it), then register an all-improvements-made exemption if the property is still below the minimum. Third-party funding that covers the full cost means the cap does not apply.
Government has proposed raising the cap to £10,000 per property alongside the band C standard, with qualifying spend counted from 1 October 2025. Government must first take new powers through an Act of Parliament, then lay a statutory instrument amending the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. The target is for the new rules to be in force during 2027. Until that happens the figure that binds you is £3,500.
Exemptions Overview
A landlord who cannot get a property to the band E minimum may be eligible for an exemption. All exemptions must be registered on the PRS Exemptions Register, a central online register that is partly public. Local authorities enforce the rules. There are several exemption categories:
Cost Cap Exemption
Available when spending up to £3,500 on qualifying improvements would not achieve the band E minimum. You must have spent up to the cap or demonstrate that the cheapest pathway exceeds it.
Third Party Consent Exemption
Applies when a required third party (such as a freeholder, superior landlord, or planning authority) refuses consent for necessary improvements. Written evidence of refusal is required.
Devaluation Exemption
Available if a qualified surveyor provides written opinion that the improvements would devalue the property by more than 5%. An independent valuation is required.
Wall Insulation Exemption
Specific exemption for properties where wall insulation would have a negative impact on the structure or fabric, based on expert assessment.
New Landlord Exemption
Temporary exemption of 6 months from the date you became the landlord, for example if you bought a property that was already let on an existing tenancy, allowing time to make improvements.
Penalties for Non-Compliance
Local authorities enforce MEES. These are the maximum penalties in force under the 2015 Regulations, and the only ones anyone can be fined under today.
| Breach Type | Maximum Penalty |
|---|---|
| letting a non-compliant property for less than 3 months | £2,000 |
| letting a non-compliant property for 3 months or more | £4,000 |
| providing false or misleading information | £1,000 |
| failing to comply with a compliance notice | £2,000 |
| Maximum total per property | £5,000 |
£5,000 is the ceiling for a single property, not a per-breach figure. The government has proposed raising the maximum to £30,000 per property per breach alongside the band C standard, and its response gives no revised tier breakdown. That change is not law.
RdSAP 10 Changes
The Reduced Data Standard Assessment Procedure (RdSAP) is the methodology used to calculate EPC ratings for existing dwellings. RdSAP 10 launched in June 2025 and introduces significant changes to how properties are assessed.
Key changes include updated carbon emission factors reflecting the UK's decarbonised electricity grid, revised assumptions for heating system efficiency, and new calculations for improvement recommendations. Some properties may see their ratings change under the new methodology.
What You Should Do Now
Two jobs, in order. Make sure you are compliant with the band E minimum that binds you today, then find out what band C would cost you so the proposal holds no surprises. Nothing here requires you to spend money against a rule that does not exist yet.
Check Your Current EPC Rating
Find your current EPC on the government's EPC register. If you have made improvements since the assessment, consider getting a new one. An EPC stays valid for 10 years.
Estimate Your Upgrade Costs
Use our Upgrade Cost Calculator to get a realistic estimate of what improvements will cost for your property type.
Explore Funding Options
Check eligibility for ECO4 (which runs until 31 December 2026), the Warm Homes: Local Grant (England only), and other funding sources. Some improvements may be fully funded if your tenants meet the household eligibility rules, such as receiving a qualifying benefit.
Plan and Budget Improvements
Create a timeline for improvements across your portfolio. Prioritise properties closer to the C threshold or those with tenancy renewals due.
Consider Exemption Eligibility
If improvements are likely to exceed the cost cap without reaching the band E minimum, understand the exemption pathway and document your spending carefully. If band C becomes law, the exemption rules would change, with a higher proposed cap.
Frequently Asked Questions About EPCs for Rental Properties
What EPC rating do you need to rent out a property?
In England and Wales a rented home needs an EPC rating of band E or better. Since 1 April 2020 landlords cannot let, or continue to let, a covered property rated F or G unless a valid exemption is registered (GOV.UK landlord guidance). Band C from 1 October 2030 is decided government policy, not yet law.
Can I rent out a property with an EPC rating of D?
Yes. Band D is legal to let, because only bands F and G fall below the current minimum of E. The proposed band C standard would change that from 1 October 2030, but it needs new powers by Act of Parliament and then a statutory instrument, and no statutory instrument has been laid.
Does a rental property need an EPC?
Yes, if it is marketed to let. The landlord must commission the EPC before the property goes on the market and use all reasonable efforts to have it within 7 days of first marketing, with a further 21 days if it still cannot be obtained (SI 2012/3118, regulation 7). The tenant must be given a copy free of charge, and an EPC is valid for 10 years.
What happens if my rental property is rated F or G?
Improve it to band E, or register an exemption, before you let it. If you are already letting it, do that immediately. You are not required to spend more than £3,500 including VAT: make the improvements that fit within that amount, then register an "all improvements made" exemption if it still falls short. That exemption lasts 5 years.
What is the penalty for letting a property below the minimum EPC rating?
A local authority can fine up to £2,000 for a breach lasting under 3 months and up to £4,000 for 3 months or more, and can publish details of the breach. The maximum per property is £5,000 in total (SI 2015/962, regulation 40). A maximum of £30,000 is proposed, not yet law.
Do the minimum EPC rules cover every rented property?
No. They cover domestic properties let on an assured, regulated or domestic agricultural tenancy that are legally required to have an EPC (GOV.UK landlord guidance). If either condition is not met, the property is outside the regulations. An empty property needs no action until you decide to let it again.
Do the same EPC rules for rental properties apply in Scotland and Northern Ireland?
No. The regulations on this page apply in England and Wales only. Scotland and Northern Ireland have their own rules for rented homes.
For the full cost cap and exemption rules, see the cost cap and exemptions guide. Landlords in Scotland or Northern Ireland should read our Scotland guide or Northern Ireland guide.
Further Reading
Explore our detailed guides on specific aspects of EPC compliance:
EPC C 2030 Deadline Explained
Where the proposed October 2030 date stands, and what it would mean for your tenancies.
MEES Regulations Complete Guide
Comprehensive guide to Minimum Energy Efficiency Standards and their application.
Cost Cap and Exemptions
The £3,500 cap in force, the £10,000 proposed, and when you might qualify for an exemption.
RdSAP 10 Changes Explained
How the new EPC methodology affects ratings and whether a fresh assessment could score differently.
Warm Homes Plan Summary
Key takeaways from the January 2026 government announcement for landlords.