{"id":6107346,"date":"2026-03-11T09:02:10","date_gmt":"2026-03-11T08:02:10","guid":{"rendered":"https:\/\/www.buyassociationgroup.com\/en-gb\/?p=6107346"},"modified":"2026-03-10T22:21:39","modified_gmt":"2026-03-10T21:21:39","slug":"major-epc-changes-property","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/news\/major-epc-changes-property\/","title":{"rendered":"Major EPC changes expected in 2026 could steer property investment choices"},"content":{"rendered":"

Energy efficiency remains a key concern among property investors, landlords and tenants alike as a factor that increasingly impacts rentability and sellability.<\/span><\/h1>\n

As part of the UK government\u2019s Reforms to the Energy Performance of Buildings<\/a> regime, a partial response has been published revealing that, subject to legislation, changes to the way energy performance certificates (EPCs) are implemented could be brought forward by October this year.<\/span><\/p>\n

The reforms are integral to the government’s ongoing push to improve energy efficiency in rental homes in the UK, with all rental properties required to have an EPC rating of C or higher from 1 October 2030, or have a valid exemption. Currently, properties need to achieve an E rating in order to be legally let out.<\/span><\/p>\n

By then, though, the way that energy efficiency is actually assessed is likely to have changed. The government has proposed switching from the current cost-based rating model to a new Home Energy Model, which would assess how well a property retains heat rather than how much it costs to heat.\u00a0<\/span><\/p>\n

This will be based on a new fabric performance metric, which will measure thermal performance factors such as insulation, window quality and air tightness. Heating system performance will also be measured, looking at efficiency and carbon testing, as well as smart readiness such as the ability to use smart meters and energy management.<\/span><\/p>\n

The plan is that this will still align with the current A-G rating options, so homes will need to achieve a C based on the new measure.<\/span><\/p>\n

Expansion to HMOs and holiday lets<\/span><\/h2>\n

At present, houses in multiple occupation<\/a> (HMOs) can technically be rented out without having an EPC if rooms are rented out on separate tenancy agreements – they only need to provide an EPC if they sell the property or let it out as a whole dwelling.\u00a0<\/span><\/p>\n

Holiday lets<\/a>, meanwhile, also have different guidelines when it comes to energy performance, only requiring an EPC if they are rented out for a total of four months or more in a 12-month period.<\/span><\/p>\n

Under the new reforms under consideration, the scope of buildings that must hold a valid EPC is broadening, and this means short-term holiday lets, HMOs and some heritage buildings that are currently exempt are likely to need to obtain certificates.<\/span><\/p>\n

These changes offer food for thought for property investors assessing their existing portfolios or considering purchasing new properties. While the minimum energy efficiency standards set to come in are nothing new, considering the changes to how EPCs are set to be calculated could steer landlords and investors towards properties that are likely to have the best heat retention, for example. <\/span><\/p>\n

The fact that the government appears to be looking to crack down on exemptions for some older heritage properties could mean significant upgrade bills ahead for landlords who have such properties in their portfolios.<\/span><\/p>\n

These policies are an important part of the UK\u2019s drive to achieve its net-zero targets by 2050. The reforms are also set to play a role in reducing carbon emissions, improving housing standards and tackling fuel poverty.<\/span><\/p>\n

According to Ruban Selvanayagam, co-founder of Property Solvers, there is \u201cgrowing pressure around EPC ratings\u201d for property investors and landlords despite the fact that previous goalposts have been moved further out.<\/span><\/p>\n

\u201cThe old EPC C deadlines were removed, but everything coming out of the government points to tighter energy efficiency expectations in the years ahead,\u201d he remarked. <\/span>\u201cOlder properties, Victorian terraces, pre-war homes and flats with poor insulation or electric-only heating face higher upgrade costs over the medium term.\u00a0<\/span><\/p>\n

\u201cEven without legislation, buy-to-let mortgage lenders, insurers and tenants are already favouring more energy-efficient homes. <\/span>For long-term investors, planning for heating upgrades, insulation improvements and general thermal efficiency is essential.<\/span><\/p>\n

\u201cThese costs don\u2019t make buy-to-let unviable, but they do make it more capital-intensive.\u201d<\/span><\/p>\n

New-builds offset cost of upgrades<\/h2>\n

A recent survey from Just Landlords found that 3.38 million rental properties in England and Wales would not currently meet the October 2030 requirement of a C-rated EPC, leading to sometimes significant upgrade costs to meet the target.<\/p>\n

According to the research, the average cost to upgrade a non-compliant property is currently \u00a37,633, but for some homes – particularly those in rural regions – this could rise to as much as \u00a312,000.<\/p>\n

When the new rules come into play, the maximum amount landlords would be required to pay to improve their property to boost their rating is expected to be \u00a310,000 per property. If this amount is spent and the property still doesn’t meet the minimum requirement, it can be registered as exempt for 10 years. Any energy efficiency improvements made since October 2025 would count towards this cap.<\/p>\n

But the benefits of operating an energy efficient property as a landlord are often significant, with higher-rated homes generally generating stronger returns and much higher tenant demand – particularly as tenants increasingly seek homes that will lower their ever-rising household bills. According to the Home Builders Federation (HBF), a top-rated home can save around \u00a3400-\u00a3600 per year on energy costs compared to the lowest-rated properties.<\/p>\n

HBF research<\/a> also shows that 87% of new-builds have an A or a B energy rating, according to the latest figures, while just 5% of older homes achieve the highest ratings. New-builds emit up to 74% less carbon per year, and can offer energy costs that are up to 27% cheaper.<\/p>\n

There are multiple benefits that come with investing in a new-build property as a landlord, including reduced maintenance costs, 10-year structural warranties and more appealing interiors with no decoration or improvements to make in the immediate term. Moreover, as a result of a growing interest in energy efficient homes, strong tenant demand can lead to faster occupancy, stronger rents and the potential for tenants to stay put for a longer period of time.<\/p>\n","protected":false},"excerpt":{"rendered":"

Energy efficiency remains a key concern among property investors, landlords and tenants alike as a factor that increasingly impacts rentability and sellability. As part of the UK government\u2019s Reforms to the Energy Performance of Buildings regime, a partial response has been published revealing that, subject to legislation, changes to the way energy performance certificates (EPCs)… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":6038695,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[765,2,59,6],"tags":[],"class_list":["post-6107346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-investment","category-buy-to-let-landlords","category-trending-news","category-uk-housing-market"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6107346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=6107346"}],"version-history":[{"count":3,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6107346\/revisions"}],"predecessor-version":[{"id":6107349,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6107346\/revisions\/6107349"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/6038695"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=6107346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=6107346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=6107346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}