EPC C Rating Deadline for Rental Properties: Are You Ready for 2028?
The UK government has set a target for all rental properties to achieve an Energy Performance Certificate (EPC) rating of C or above by 2028. This deadline falls under the Minimum Energy Efficiency Standards (MEES) and will affect millions of landlords across England and Wales. With the clock ticking, landlords need to understand the requirements, costs, and steps to comply.
Current EPC Requirements for Rental Properties
Since April 2018, landlords in England and Wales have had to ensure their properties have a minimum EPC rating of E before granting a new tenancy. As of April 2020, this applies to all existing tenancies. The EPC rating measures a property's energy efficiency, graded from A (most efficient) to G (least efficient).
Failing to comply with the current MEES can result in financial penalties of up to £5,000 per property. Local authorities enforce these regulations and can issue compliance notices.
The Proposed 2028 Deadline: What's Changing?
In 2021, the government consulted on raising the minimum EPC rating for rental properties to C. The consultation, Improving the Energy Performance of Privately Rented Homes, proposed that all new tenancies must have an EPC rating of C or above by 2025, and all existing tenancies by 2028. The government has since indicated that the 2025 date may be pushed back, but the 2028 deadline for all tenancies remains a key target.
Under the proposals, landlords will need to invest in energy efficiency improvements to bring their properties up to standard. The exact timeline and enforcement details are still subject to final legislation, but landlords should prepare now.
Expected Costs for Landlords
The cost of upgrading a property to EPC C varies depending on its current rating and size. According to government estimates, the average cost to improve a property from band D to band C is around £1,500, while moving from band E to band C could cost up to £5,000. For properties with solid walls or off-gas grid heating, costs can be significantly higher.
Typical improvements include:
- Installing loft insulation (cost: £300–£500)
- Adding cavity wall insulation (cost: £500–£1,500)
- Upgrading to a modern condensing boiler (cost: £2,000–£4,000)
- Installing double or triple glazing (cost: £4,000–£10,000)
- Adding solar panels (cost: £5,000–£8,000)
Landlords should obtain a new EPC assessment after improvements to confirm the new rating. An EPC typically costs between £60 and £120.
Grants and Funding Options
Several grants and schemes are available to help landlords fund energy efficiency improvements:
- Energy Company Obligation (ECO4): This scheme requires energy suppliers to fund efficiency improvements for low-income households. Landlords can access ECO4 if their tenant meets certain eligibility criteria.
- Green Homes Grant: Although the original scheme closed, the government has introduced the Green Homes Grant Local Authority Delivery (LAD) and Home Upgrade Grant (HUG) schemes, which may be available in certain areas.
- Landlord grants: Some local authorities offer grants specifically for landlords to improve energy efficiency.
- VAT relief: Energy-saving materials installed in residential properties may qualify for reduced VAT (5%).
Landlords should check with their local authority and energy supplier for available funding.
Exemptions from the EPC C Requirement
Not all properties will need to meet the EPC C target. Exemptions may apply if:
- The property is a listed building or in a conservation area where improvements would require consent and harm the character.
- Improvements would reduce the property's value by more than 5%.
- The landlord cannot obtain funding through available schemes (e.g., ECO4) and the cost of improvements exceeds a cap (proposed at £10,000).
- All possible improvements have been made and the property still cannot reach band C.
Landlords must register exemptions on the EPC Register and provide evidence. Exemptions are valid for five years.
How Inventory Software Can Help Track Compliance
Keeping on top of EPC ratings, improvement works, and exemption deadlines across a property portfolio is a significant administrative task. Property inventory software can help landlords and letting agents manage compliance efficiently. For example, our property inventory platform allows you to store EPC certificates, track expiry dates, and set reminders for upcoming deadlines. You can also log improvement works and costs, and generate reports for audits.
With the 2028 deadline approaching, a centralised system for compliance data reduces the risk of fines and ensures you can demonstrate due diligence to local authorities.
Latest Updates on MEES
The government has not yet published its final response to the 2021 consultation. However, in the 2023 Autumn Statement, the government confirmed its intention to proceed with the EPC C target for rental properties, with a focus on a 'fabric first' approach. The Department for Energy Security and Net Zero (DESNZ) is expected to publish further details on the timeline, cost cap, and exemptions in 2024.
Landlords should monitor announcements from DESNZ and the Ministry of Housing, Communities and Local Government (MHCLG). The NRLA and ARLA Propertymark are also providing updates and guidance to their members.
Practical Steps to Prepare for 2028
To ensure you're ready for the 2028 EPC C deadline, follow these steps:
- Check your property's current EPC rating. If you don't have a valid EPC, commission one immediately.
- Identify improvement options. Use the EPC recommendations to plan cost-effective upgrades.
- Explore funding. Check eligibility for ECO4, local authority grants, and VAT relief.
- Budget for improvements. Spread costs over the next few years where possible.
- Consider exemptions. If your property qualifies, register the exemption on the EPC Register.
- Use inventory software. Track EPC ratings, works, and deadlines in one place.
- Stay informed. Follow government announcements and industry bodies for updates.
With the 2028 deadline on the horizon, early preparation is key. Landlords who act now can avoid last-minute scrambles and potential penalties.
Ready to Simplify EPC Compliance?
Our property inventory CRM helps landlords and letting agents track EPC ratings, schedule improvements, and stay compliant with MEES. Book a demo today to see how it can work for you.