EPC C by 2028: The Deadline Landlords Can't Ignore
The UK government has set a legally binding target: all privately rented homes in England and Wales must achieve an Energy Performance Certificate (EPC) rating of C or above by 2028. This is part of the Minimum Energy Efficiency Standards (MEES) regulations, which currently require an EPC E rating for new tenancies and will extend to all tenancies from 2025. The 2028 deadline is a significant escalation, and landlords who fail to comply could face fines of up to £30,000 per property.
The government's consultation on MEES, which closed in 2021, proposed a cost cap of £15,000 per property for landlords to reach EPC C. Landlords will not be required to spend more than £15,000 to improve their property's energy efficiency. The cap is per property, not per landlord, and it applies to the total spend on energy efficiency improvements. If a property cannot reach EPC C for £15,000, landlords can apply for an exemption, but they must provide evidence of the work quoted and the costs.
What the Latest MEES Regulations Say
The MEES regulations are enforced by local authorities, who can issue compliance notices and financial penalties. The current regulations, introduced under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, set a minimum EPC rating of E for new tenancies and will apply to all tenancies from 1 April 2025. The proposed changes would raise the minimum to C for all new tenancies from 2025 and all existing tenancies from 2028.
The government has also confirmed that it will consult on a new cost cap and exemption regime. The £15,000 cap is not yet law, but it is the figure proposed in the consultation. Landlords should plan on the basis that the cap will be in place, as it is likely to be included in the final regulations.
The 2028 deadline applies to all privately rented homes. The social rented sector has its own targets; the focus here is on private landlords.
Penalties for Non-Compliance
Fines for non-compliance with MEES can be substantial. For domestic properties, the maximum fine is £5,000 per property for a first offence, and up to £30,000 for subsequent offences. Local authorities can also publish details of non-compliant landlords on a public register. In addition to fines, landlords may be required to repay rent to tenants for the period of non-compliance.
These penalties are designed to be a deterrent, but they also reflect the government's commitment to improving the energy efficiency of the UK's housing stock. With the cost of energy rising, tenants are increasingly aware of EPC ratings and may choose to avoid properties with poor ratings.
Grants and Funding for Energy Efficiency Improvements
Several grants and funding schemes are available to help landlords improve the energy efficiency of their properties. The most well-known is the Energy Company Obligation (ECO) scheme, which requires energy suppliers to fund energy efficiency improvements for low-income households. Landlords can access ECO funding if their tenants meet certain eligibility criteria, such as receiving certain benefits.
The Green Homes Grant scheme, which provided vouchers for energy efficiency improvements, closed to new applicants in 2021. However, the government has announced a new scheme, the Home Upgrade Grant (HUG), aimed at low-income households off the gas grid. Landlords with properties in these areas may be able to access funding.
Local authorities also offer grants and loans for energy efficiency improvements. Landlords should check with their local council to see what is available in their area. The Energy Saving Trust provides a useful database of grants and funding options.
Practical Steps for Landlords to Prepare
With the 2028 deadline approaching, landlords should take the following steps to prepare:
- Check your EPC rating: If you don't have a current EPC, get one. EPCs are valid for 10 years. If your property is rated D or below, you will need to make improvements.
- Identify the most cost-effective improvements: Not all improvements are expensive. Simple measures like installing LED lighting, loft insulation, and draught-proofing can improve your rating. More expensive measures include wall insulation, heat pumps, and solar panels.
- Get quotes and plan your budget: The £15,000 cost cap means you won't have to spend more than that, but you should still get quotes to understand the costs. Prioritise improvements that give the biggest EPC rating boost for the lowest cost.
- Consider using a property inventory app to track your EPC and improvement works: Keeping accurate records of your property's energy efficiency measures and EPC status is essential for compliance. Our property inventory software can help you manage EPC data, schedule improvements, and generate compliance reports.
- Check for exemptions: If your property cannot reach EPC C for £15,000, you may be eligible for an exemption. You must register the exemption on the PRS Exemptions Register.
- Communicate with tenants: If you need access to the property to make improvements, you must give tenants proper notice. Use a property inventory app to schedule inspections and track communication.
How Inventory Clerks Can Help
Inventory clerks are well-positioned to support landlords with EPC compliance. During inspections, clerks can note the property's energy efficiency features, such as insulation, heating systems, and windows. They can also check that the EPC is displayed and valid. By using an AI inventory tool, clerks can capture and report this data efficiently, helping landlords stay on top of their obligations.
Inventory clerks can also remind landlords when EPCs are due for renewal and flag any changes that might affect the rating. This proactive approach can save landlords from last-minute scrambles and potential fines.
What Happens If You Miss the Deadline?
If you fail to comply with the MEES regulations by 2028, you could face significant penalties. Local authorities can issue compliance notices, which give you a set period to make improvements. If you fail to comply, you can be fined. The fines are per property and per breach, so the costs can add up quickly.
In addition to fines, you may find it difficult to let your property. Tenants are increasingly aware of EPC ratings and may avoid properties with poor ratings. Mortgage lenders may also refuse to lend on properties with low EPC ratings, which could affect your ability to remortgage or sell.
Frequently Asked Questions
What is the EPC C 2028 deadline?
The UK government has proposed that all privately rented homes must have an EPC rating of C or above by 2028. This is part of the Minimum Energy Efficiency Standards (MEES) regulations.
What is the cost cap for landlords?
The government has proposed a cost cap of £15,000 per property. Landlords will not be required to spend more than this to reach EPC C. If the cost exceeds £15,000, landlords can apply for an exemption.
What grants are available for landlords?
Landlords can access grants such as the Energy Company Obligation (ECO) and the Home Upgrade Grant (HUG), as well as local authority grants. Eligibility depends on tenant circumstances and property location.
What are the penalties for non-compliance?
Fines can be up to £5,000 for a first offence and up to £30,000 for subsequent offences. Local authorities can also publish non-compliant landlords on a public register.
How can inventory clerks help with EPC compliance?
Inventory clerks can record energy efficiency features during inspections, check EPC validity, and remind landlords of upcoming deadlines. Using an AI-powered inventory software can make this process more efficient.
Get Ahead with the Right Tools
Managing EPC compliance across multiple properties can be complex. Our property inventory CRM is designed to help landlords, agents, and inventory clerks track EPC ratings, schedule improvements, and stay compliant with MEES regulations. Book a demo today to see how our platform can simplify your EPC compliance journey.