Overview
The private rented sector in England and Wales faces significant energy efficiency requirements. Following years of consultation and delay, the government's Warm Homes Plan, published on 21 January 2026, confirmed that all rental properties must achieve an Energy Performance Certificate (EPC) rating of C or above by 1 October 2030.
This applies to both new and existing tenancies, meaning landlords cannot simply wait for a tenancy to end before taking action. An estimated 2.6 to 2.9 million properties currently fall below this threshold and will require improvement.
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 score range:
EPCs are produced by qualified Domestic Energy Assessors and are valid for 10 years. 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:
Timeline infographic showing key EPC regulation dates from 2018 to 2030
800 x 300px
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. All private rentals must be E-rated or above.
June 2025
RdSAP 10 launches, changing how EPCs are calculated. Existing EPCs remain valid.
1 October 2030
All rental properties must achieve EPC C or above. Penalties apply for non-compliance.
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 including Assured Shorthold Tenancies (ASTs), which are the most common form of rental agreement.
Current Requirements vs 2030 Requirements
| Requirement | Current (2020-2030) | From October 2030 |
|---|---|---|
| Minimum EPC rating | E | C |
| Minimum score | 39 | 69 |
| Cost cap for exemption | £3,500 | £10,000 |
| Maximum penalty | £5,000 | £30,000 |
| Exemption duration | 5 years | 5 years |
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 Shorthold Tenancies (ASTs)
- Properties let under regulated tenancies
- Domestic agricultural tenancies
- Houses in Multiple Occupation (HMOs)
- Properties that have an EPC (required by law to have one)
Out of Scope
- Listed buildings where improvements would alter character
- Properties not legally required to have an EPC
- Social housing (separate regulations apply)
- Holiday lets under 4 months per year
- Temporary buildings planned for under 2 years use
The £10,000 Cost Cap
The Warm Homes Plan sets a cost cap of £10,000 including VAT. This represents the maximum amount a landlord is required to spend on energy efficiency improvements before being eligible for a cost cap exemption.
It is important to understand that this is not a spending limit, but rather the threshold for exemption eligibility. Landlords must first make improvements up to this value before they can claim an exemption if the property still does not reach EPC C.
Exemptions Overview
Landlords who cannot achieve EPC C may be eligible for an exemption. All exemptions must be registered on the PRS Exemptions Register, a public database maintained by local authorities. There are several exemption categories:
Cost Cap Exemption
Available when spending up to £10,000 on qualifying improvements would not achieve EPC C. 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 for new landlords who acquire a non-compliant property, allowing time to make improvements.
Penalties for Non-Compliance
Local authorities are responsible for enforcing MEES regulations. Penalties are significant and designed to be proportionate to the breach. From October 2030, the penalty structure is as follows:
| Breach Type | Penalty Amount |
|---|---|
| Letting a non-compliant property for less than 3 months | £5,000 |
| Letting a non-compliant property for 3 months or more | £15,000 |
| Providing false or misleading information on exemptions register | £5,000 |
| Failure to comply with compliance notice | £5,000 |
| Maximum total penalty per property | £30,000 |
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.
Comparison of RdSAP 9 versus RdSAP 10 ratings for a sample property
800 x 400px
What You Should Do Now
With 1,681 days until the October 2030 deadline, now is the time to assess your portfolio and plan improvements. Here is a practical action plan:
Check Your Current EPC Rating
Find your current EPC on the government's EPC register. If your certificate is more than 5 years old or you have made improvements, consider getting a new assessment.
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, Warm Homes: Local Grant, and other funding sources. Some improvements may be fully funded if your tenants receive certain benefits.
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 achieving EPC C, understand the exemption pathway and document your spending carefully.
Further Reading
Explore our detailed guides on specific aspects of EPC compliance:
EPC C 2030 Deadline Explained
Deep dive into what the October 2030 deadline means for your properties and tenancies.
MEES Regulations Complete Guide
Comprehensive guide to Minimum Energy Efficiency Standards and their application.
Cost Cap and Exemptions
Understand the GBP 10,000 cost cap and when you might qualify for an exemption.
RdSAP 10 Changes Explained
How the new EPC methodology affects ratings and whether you should wait to get assessed.
Warm Homes Plan Summary
Key takeaways from the January 2026 government announcement for landlords.