The government has signalled that all privately rented properties in England will need a minimum EPC Band C rating for new tenancies, with the deadline expected around 2030. This affects a large proportion of the private rented sector: the English Housing Survey estimates that over 60% of privately rented homes currently rate at Band D or below. For landlords with older stock, planning and phasing energy improvement works now will be significantly cheaper than rushing them in 2029.
No primary legislation has confirmed the exact date, but the government's Net Zero Buildings Strategy makes Band C for new tenancies from around 2030 the working assumption. Properties rated D or below that have not been upgraded will be unlettable for new tenancies once the requirement comes in. Budget and programme works now.
Understanding the EPC rating system
The Energy Performance Certificate rates a property on a scale from A (most efficient) to G (least efficient). The rating reflects the property's theoretical energy performance based on its construction, insulation, heating system, and glazing — not actual energy bills. Each band covers a range of SAP (Standard Assessment Procedure) points:
| Band | SAP points | Description |
|---|---|---|
| A | 92–100 | Very energy efficient |
| B | 81–91 | Energy efficient |
| C | 69–80 | Good — target for new tenancies from ~2030 |
| D | 55–68 | Below standard — improvement needed |
| E | 39–54 | Minimum current legal standard (MEES) |
| F | 21–38 | Below legal minimum — unlettable |
| G | 1–20 | Very inefficient — unlettable |
The most cost-effective improvement measures
Not all improvement measures deliver equal value. The following are typically the most cost-effective for moving a property from Band D to Band C:
- Loft insulation (270mm mineral wool): One of the cheapest and most impactful measures for properties with accessible lofts. Cost: £300–£600 installed. SAP improvement: typically 3–8 points. Often funded free under ECO4 or GBIS for eligible tenants
- Cavity wall insulation: Highly effective for 1930s–1980s properties with cavity walls. Cost: £500–£1,500 installed. SAP improvement: 5–10 points. Available free under ECO4/GBIS schemes
- Solid wall insulation (internal or external): Required for Victorian and Edwardian solid-brick terraces. More expensive: £5,000–£15,000+ depending on method and property size. Partial grants may be available. External insulation is more disruptive but avoids loss of internal floor space
- Condensing boiler replacement: Replacing a G-rated boiler with a modern A-rated condensing boiler can deliver 5–12 SAP points. Cost: £2,500–£4,000 installed
- Air-source heat pump: Replaces gas boiler entirely. £7,500 grant available under the Boiler Upgrade Scheme. Best suited to well-insulated properties. Not suitable for all older PRS stock without significant additional insulation investment
- Double glazing: Replacing single-glazed windows with double or triple glazing contributes 2–5 SAP points depending on window area. Cost: £400–£800 per window
- Draught-proofing and hot-water cylinder insulation: Low-cost measures (£100–£500) that contribute modest SAP improvements but are cheap to implement and eligible for grant funding in some cases
Available grants and funding (2026)
- Great British Insulation Scheme (GBIS): Government scheme providing free insulation measures to properties rated D–G where occupants meet income criteria or are on certain benefits. Also includes a 'general group' for properties rated D or E regardless of tenant income. Apply via Ofgem or through energy suppliers
- Energy Company Obligation (ECO4): Funded by large energy suppliers, ECO4 provides free or heavily subsidised insulation, heating, and energy efficiency measures to low-income and fuel-poor households. The landlord's property may qualify if the tenant meets eligibility criteria
- Boiler Upgrade Scheme: £7,500 grant for air-source heat pump installation, £7,500 for ground-source heat pump. Available to landlords as well as owner-occupiers. Apply through MCS-accredited installers. Budget is allocated in rounds — apply early
- Local authority grants: Some local authorities administer additional grant schemes for PRS energy efficiency improvement, particularly in selective licensing areas. Check with your local council's housing team
- Tax treatment of improvement costs: Capital improvement works (such as replacing single glazing with double glazing) may qualify for capital allowances. Repair and maintenance costs (like-for-like replacements) are generally deductible as allowable expenses. Take advice from a tax professional on how to categorise specific works
Prioritising works across a portfolio
- Commission EPCs on all properties that do not have a current certificate (valid 10 years) — this gives you the baseline
- Focus first on properties with the lowest current ratings (F and G are already unlettable) and those with the largest gaps to Band C
- Combine improvement works where possible — loft insulation and cavity wall insulation together typically push a Band E property to Band C at a lower total cost than sequential single-measure installations
- Time major works (solid wall insulation, window replacement) to coincide with voids where possible to minimise disruption and avoid Awaab's Law repair obligations arising mid-project
- Register any valid exemptions on the PRS Exemptions Register for properties where Band C cannot economically be achieved within the cost cap
Sources
- Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (legislation.gov.uk)
- EPC guidance — GOV.UK
- Boiler Upgrade Scheme — GOV.UK
This guide is accurate as at 31 May 2026. It is provided for information purposes only and does not constitute legal or financial advice.