EPC requirements for landlords

The legal minimum EPC rating for rental properties and what happens if you don't comply.

The minimum E standard

The Minimum Energy Efficiency Standard (MEES) requires all privately rented properties in England and Wales to have an EPC rating of at least E.¹ This applies to:

• Assured tenancies
• Regulated tenancies
• Agricultural tenancies

If a property is rated F or G, you cannot:

• Grant a new tenancy
• Renew or extend an existing tenancy
• Continue to let the property after 1 April 2020 (even if the tenancy started before that date)

The only ways to let an F or G-rated property legally are to:

1. Make energy efficiency improvements until the property reaches at least E
2. Register a valid exemption (see below)

Timeline of EPC regulations for landlords

The 2028/2030 dates are from a 2020 government consultation. As of June 2026, the C target has not been written into law.

When the rules apply

The MEES rules apply at specific trigger points:²

New tenancies (since April 2018)

When you grant a new assured shorthold tenancy (AST) or other private tenancy, the property must be at least an E on the day the tenancy starts. You cannot let an F or G property to a new tenant.

Existing tenancies (since April 2020)

If a tenancy was already in place on 1 April 2020 and the property was rated F or G, you had to either:

• Improve the property to at least E by 1 April 2020, or
• Register an exemption

Tenants in F or G properties can report non-compliance to the local authority. The council can investigate and fine landlords who haven't complied.

Tenancy renewals and extensions

If you renew or extend a tenancy (including a statutory periodic tenancy that becomes contractual), the property must meet the E standard at the point of renewal.

Exemptions

You can register an exemption if:³

1. All relevant improvements have been made

If you've installed all cost-effective insulation and heating improvements recommended on the EPC (up to a cap of £3,500 including VAT) and the property is still below E, you can register a 5-year exemption.

"Cost-effective" means improvements with a payback period of 7 years or less. The EPC certificate lists these in the "Recommendations" section.

2. Wall insulation would devalue the property by more than 5%

If a surveyor confirms that installing wall insulation (cavity, internal, or external) would reduce the property's market value by more than 5%, you can register a 5-year exemption.

3. Third party consent cannot be obtained

If you need consent from a superior landlord, tenant, mortgage lender, or planning authority to make improvements, and that consent has been refused, you can register a 5-year exemption.

4. Recent purchase (6 months)

If you bought the property in the last 6 months and it was already let, you have 6 months from the date of purchase to either improve it or register an exemption.

How to register an exemption

Exemptions must be registered on the national PRS Exemptions Register at:

prsregister.beis.gov.uk

Registration is free. You'll need to provide evidence (invoices for improvements, surveyor's report, written refusal of consent, etc.). Exemptions last 5 years, after which you must either make further improvements or re-register if circumstances haven't changed.

Penalties for non-compliance

Local authorities enforce the MEES rules. Tenants can report non-compliant properties. Councils can investigate and issue civil penalties of:⁴

• Up to £2,000 for letting a sub-E property for less than 3 months
• Up to £4,000 for 3 months or more
• Up to £5,000 maximum fine per property per breach
• Up to £2,000 for providing false information on the exemptions register
• Up to £1,000 for failing to comply with a compliance notice

Fines are based on the rateable value of the property and the length of non-compliance. The local authority can also publish details of the breach (landlord's name, address, penalty amount) on a public register.

In practice, enforcement has been patchy. Some councils actively investigate, others don't. However, tenants are increasingly aware of the rules, and councils are building up databases of non-compliant properties flagged by tenants.

The proposed C rating target (2030)

In 2020, the government consulted on raising the minimum EPC standard to C by:⁵

• 2028 for new tenancies
• 2030 for all existing tenancies

The proposal included a spending cap of £10,000 per property (up from the current £3,500 for the E standard). Landlords would only need to spend up to that cap to make cost-effective improvements. If the property still didn't reach C after £10,000 of improvements, an exemption would apply.

As of June 2026, this proposal has not been written into law. The target has been repeatedly delayed. However, many landlords are pre-emptively upgrading to C because:

• It future-proofs the property if the law does change
• C-rated properties let faster and command higher rents
• Energy efficiency grants (ECO4, local authority schemes) are available now and may not be in future

If you have a D-rated property, the gap to C is usually achievable with loft insulation and cavity wall insulation (total cost £800-£2,100 for a typical house). See: How to improve your EPC rating.