Minimum energy efficiency rules for landlords in England and Wales

Private landlords in England and Wales must meet minimum energy efficiency standards before they can let a property. The current law sets the floor at Energy Performance Certificate rating E. The government confirmed in January 2026 that this will rise to EPC C or equivalent by 1 October 2030.

This article explains the rules in force now, the changes that have been confirmed for 2030, and what remains a proposal. Scotland and Wales have separate powers over some housing standards, so the position differs across the UK.

What the law requires today

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 set minimum energy efficiency standards for domestic private rented homes. Since April 2020, landlords have been prohibited from letting properties with an EPC rating below E, unless they have registered a valid exemption. The Department for Energy Security and Net Zero published guidance in May 2026 confirming this position remains in force.

The current regulations apply to properties let on assured, regulated or domestic agricultural tenancies that are legally required to have an EPC. Landlords of properties rated F or G must invest up to £3,500 including VAT per property to bring the rating to at least E. If the property cannot reach E after spending that amount, the landlord may register an exemption and continue to let the property for a limited period.

Local authorities enforce the regulations. Penalties for non-compliance can reach up to £5,000 per property, according to guidance published by multiple councils in 2026.

The confirmed 2030 standard

The government published its response to the 2025 consultation on improving the energy performance of privately rented homes in January 2026. That document confirmed key policy decisions. All tenancies in England and Wales within scope of the regulations must be compliant with a new standard by 1 October 2030. There will not be an earlier compliance date for new tenancies.

The government stated in January 2026 that private rented homes will be required to meet a primary standard set against the fabric performance metric on new EPCs and a secondary standard set against either the smart readiness metric or the heating system metric. The decision of which secondary standard to meet will be at the landlord's discretion.

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The government confirmed in January 2026 that landlords will be required to invest up to £10,000 per property on relevant energy efficiency improvements to bring the property up to standard. If the property does not meet the standard after £10,000 has been invested, the landlord may register the property for an exemption valid for 10 years.

The impact assessment published alongside the government response in January 2026 estimated that the average spend per property to meet the standard will be £5,400, taking into account the cost cap. The assessment also estimated that up to 415,000 households could be lifted out of fuel poverty by 2030 as a result of the policy.

Properties that achieve a C rating or higher against the Energy Efficiency Rating on EPCs before 1 October 2029 will be considered compliant with the higher standard until the EPC expires or is replaced. This means landlords who act early using current certificates can benefit from a longer compliance window, potentially up to 2039 given the 10 year validity period of EPCs.

Reformed energy performance certificates

The 2030 standard will be assessed using reformed EPCs. The government stated in January 2026 that it will aim to deliver new EPCs from October 2026, though it recognised the timeline is ambitious. New EPCs will introduce updated metrics including fabric performance, smart readiness and heating system efficiency.

The government published a consultation on how new EPC metrics will be calculated using the Home Energy Model in January 2026. That consultation closed on 18 March 2026 and the government is analysing responses. Once the development of the Home Energy Model is complete, the government will confirm the band boundaries for the new metrics, including the score against each metric that will constitute a C grade.

Landlords of private rented homes that do not have a score of EER C or higher on their EPC before 1 October 2029 will need to take action to improve their property to meet the standard set against new EPC metrics before 1 October 2030. Before taking action, landlords will be required to commission a new EPC that displays these new metrics.

What still requires legislation

The government response published in January 2026 sets out policy decisions, but the changes require secondary legislation to take legal effect. The government stated in January 2026 that it will seek to lay secondary legislation in 2027. That legislation will define the maximum required investment of £10,000 per property, the maximum fine per infringement, the EPC metrics that will be used for increased standards, the increased standard requirement of EPC C, and a requirement to obtain an updated EPC once any improvements have been made to a property.

Until the secondary legislation is passed by Parliament and comes into force, the existing minimum standard of EPC E remains the legal requirement. Landlords of privately rented homes will continue to be required to comply with the existing minimum standard of EPC E up until the point they are required to comply with the higher standard, according to the January 2026 government response.

Exemptions and enforcement

The government confirmed in January 2026 that several exemptions will be available under the new regulations. A Property Value Adjustment exemption will be introduced for properties valued below £100,000, whereby these properties will be subject to a lower maximum spend requirement equivalent to 10 per cent of the property's value. The existing high cost and third party consent exemptions under the current exemptions regime will remain.

New exemptions will also be introduced, including negative impacts and solid wall insulation exemptions. The new landlord exemption has been simplified. Landlords will need to register exemptions on the PRS Exemptions Register maintained by local authorities.

Third party funding that the landlord receives can be counted towards the £10,000 cap, including funding from government schemes, except for funding received from the Boiler Upgrade Scheme, according to the January 2026 government response. The government stated it will work with landlord and tenant advocacy groups to develop detailed guidance.

The position in Scotland and Wales

Scotland has separate regulations. The Energy Efficiency (Domestic Private Rented Property) (Scotland) Regulations 2020 came into force on 1 April 2020. Those regulations set a minimum level of energy efficiency at EPC E from 1 October 2020, rising to EPC D from 1 April 2022. The cost cap in Scotland is £5,000 for most properties, or £10,000 where certain conditions are met.

The Scottish Government published a consultation in 2026 on proposed new regulations to introduce a minimum energy efficiency standard in the private rented sector. The consultation proposed that all PRS properties should reach reformed EPC Heat Retention Rating band C from 2028 for new tenancies and by 2033 for all privately rented homes. That consultation closed and the Scottish Government is considering responses.

Wales is covered by the same regulations as England for private rented sector minimum energy efficiency standards. Rent Smart Wales confirmed in January 2026 that the UK Government published its response to the consultation on improving the energy performance of privately rented homes, and that the existing requirement for PRS properties to meet EPC E will be replaced with a higher standard equivalent to EPC C by 1 October 2030.

What this means in practice

Landlords letting property in England and Wales today must ensure their properties meet the current EPC E standard, unless they have a valid registered exemption. Those planning to continue letting beyond October 2030 will need to consider how to meet the higher standard once the secondary legislation is in force.

Some landlords may choose to commission improvements before new EPCs become available. Properties that achieve EPC C on the current Energy Efficiency Rating before 1 October 2029 will be recognised as compliant until the certificate expires. This could provide up to 10 years of compliance from the date the certificate is issued.

Landlords considering energy efficiency work, exemptions or compliance timelines may wish to speak to a qualified, regulated adviser for guidance on their individual circumstances. The government stated in January 2026 that it will publish updated guidance to GOV.UK on the higher standard in 2029.

Read the energy certificates guide