In this guide
- What is an EPC, and who must have one?
- What is the current legal minimum?
- How does the current £3,500 cost cap work?
- Which exemptions can I register now?
- What are the current penalties?
- What has the government confirmed about Band C by 2030?
- How will the future £10,000 cost cap work?
- What will “Band C” mean under the new metrics?
- What should landlords do now?
Most privately rented homes in England must have a valid Energy Performance Certificate and meet Band E unless a registered exemption applies. The current cost cap is £3,500 including VAT and the maximum penalty is £5,000 per property. The government has confirmed a plan to raise the standard to the equivalent of Band C by 1 October 2030. That change is not yet law.
What is an EPC, and who must have one?
An Energy Performance Certificate rates a property from A (most efficient) to G (least efficient). It is produced by an accredited domestic energy assessor after a site visit and lodged on the national register. It is valid for ten years from the date of issue.
You must have a valid EPC before you market or let a residential property, and you must give the tenant a copy free of charge at the start of the tenancy. Tenants can also look the certificate up on the public register.
The How to Rent guide is no longer required in most cases. Giving the EPC is a separate duty and still applies. See what replaced the How to Rent guide.
(Source: Domestic private rented property: minimum energy efficiency standard, landlord guidance)
What is the current legal minimum?
Since 1 April 2020, landlords cannot let or continue to let a property covered by the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 if it is rated F or G, unless a valid exemption is registered. The prohibition applies to new and continuing tenancies.
The regulations apply where both of the following are true:
- the property is let on an assured tenancy, a regulated tenancy, or a domestic agricultural tenancy
- the property is legally required to have an EPC
If the property is empty and not being let, you do not need to act until you decide to let it again. If it is currently let at F or G without an exemption, you must improve it to E or register an exemption.
(Source: MEES landlord guidance)
How does the current £3,500 cost cap work?
You are not required to spend more than £3,500 including VAT on energy efficiency improvements to meet Band E. If you can reach E for less, that is all you need to spend.
Relevant improvements are measures recommended on the EPC that can be purchased and installed for £3,500 or less including VAT. Energy efficiency investment since 1 October 2017 can count towards the cap. Third-party funding, such as the Energy Company Obligation, can sit alongside your own spend.
If you install measures that do not appear on the EPC recommendations, and those measures fail to reach E, you will not be able to register an exemption until you have also attempted the recommended measures.
(Source: MEES landlord guidance)
Which exemptions can I register now?
Exemptions are registered on the PRS Exemptions Register. They apply from the date you register them. You cannot amend the data once submitted. All exemptions require a valid EPC to be uploaded.
| Exemption | When it applies | How long it lasts |
|---|---|---|
| All relevant improvements made | You have made all recommended improvements up to the £3,500 cap and the property remains below E, or there are no relevant improvements | Five years |
| High cost | The cheapest single recommended measure would cost more than £3,500 including VAT | Five years |
| Wall insulation | The only relevant improvements are cavity, external or internal wall insulation, and written expert advice says they would harm the fabric or structure | Five years |
| Third-party consent | A required improvement needs consent from a tenant, superior landlord, mortgagee, freeholder or planning department, and despite reasonable efforts that consent is refused or granted only on conditions you cannot reasonably meet | Five years, or until the end of the current tenancy if the tenant withheld consent |
| Property devaluation | An independent RICS-registered valuer reports that the recommended measures would reduce market value by more than 5% | Five years |
| Recently becoming a landlord | You have recently become the landlord in the prescribed circumstances | Six months from the date you became the landlord |
(Source: MEES landlord guidance)
What are the current penalties?
Local authorities enforce the regulations. A compliance notice can be served up to 12 months after a suspected breach.
| Breach | Maximum penalty |
|---|---|
| Letting a non-compliant property for less than three months | £2,000, plus a publication penalty |
| Letting a non-compliant property for three months or more | £4,000, plus a publication penalty |
| False or misleading information on the Exemptions Register | £1,000 |
| Failing to comply with a compliance notice | £2,000 |
| Maximum total per property | £5,000 |
You can ask the authority to review a penalty notice, then appeal to the First-tier Tribunal.
(Source: MEES landlord guidance)
What has the government confirmed about Band C by 2030?
On 21 January 2026 the government published its response to Improving the energy performance of privately rented homes. It confirms the intention to raise the minimum standard for privately rented homes in England and Wales to the equivalent of EPC C.
That is confirmed policy. It is not yet law. The government said it will seek the necessary powers and then lay a statutory instrument to amend the 2015 Regulations, with the aim of it coming into force in 2027. Until that instrument is made, the legal minimum stays at Band E.
| Item | Today’s law | Confirmed policy, not yet law |
|---|---|---|
| Minimum standard | Band E | Equivalent of Band C for all tenancies |
| Compliance date | In force now | 1 October 2030, as a single date for all tenancies. The earlier 2028/2030 split has been dropped |
| Cost cap | £3,500 including VAT | £10,000 per property over 10 years |
| Maximum penalty | £5,000 per property | Intended rise to £30,000 per property per breach |
(Source: Government response, 21 January 2026)
How will the future £10,000 cost cap work?
The government response and impact assessment set out the intended rules. They will only bite once the amending regulations are made.
A landlord would have to carry out recommended improvements up to the £10,000 ceiling. If the property reaches the new standard along the way, the obligation is met. If the full cap is spent on eligible measures and the property still falls short, a cost-cap exemption lasting 10 years can be registered.
For a property valued below £100,000, an affordability adjustment is intended: the required spend would be the lower of £10,000 or 10% of the property’s value.
Eligible spending from 1 October 2025 is expected to count, including the cost of the EPC assessment and specialist retrofit advice. The cost of installing fossil fuel heating in that early period is not expected to count.
The cap is intended to be reviewed every five years, with the first review after October 2030.
(Source: Government response, 21 January 2026; Impact assessment)
What will “Band C” mean under the new metrics?
The letter C is about to change meaning. The government has confirmed that EPC methodology is being reformed under the Home Energy Model, replacing today’s single Energy Efficiency Rating with several new metrics.
Compliance is intended to be measured against a dual-metric standard: a primary fabric performance metric, plus a secondary metric such as the heating system or smart readiness. The exact band boundaries are still being finalised. Do not rush into major works solely to chase a future letter until the assessment method is settled, unless the measure is sensible on its own terms.
There is a transitional route. The government has said that properties scoring Band C or better on the current Energy Efficiency Rating before 1 October 2029 will be treated as compliant until that EPC expires or is replaced.
(Source: Government response, 21 January 2026)
What should landlords do now?
Check the rating and expiry date of every EPC. A property rated F or G without a registered exemption is in breach today, not in 2030. Commission a new assessment if the certificate predates improvements already made.
Keep invoices, quotes and before-and-after records for any energy work from 1 October 2025 onward, so they can count if the new cap is enacted as planned. Seek independent advice before committing to major fabric works while the new metrics are still being finalised.
The incoming PRS Database will ask whether a valid EPC had to be given to the current tenant, and for a copy of the most recent certificate.
Check where those certificates stand on your property. Check My Compliance
Last reviewed: 8 October 2026.
Frequently asked questions
What is the minimum EPC rating for a rental property in England today?
Band E. A privately rented property that must have an EPC cannot be let at F or G unless a valid exemption is registered on the PRS Exemptions Register.
Is Band C a legal requirement yet?
No. The 21 January 2026 government response confirmed the intention to raise the standard to the equivalent of Band C by 1 October 2030, with a £10,000 cost cap. The amending regulations have not been made.
How long does an EPC last?
Ten years from the date of issue. You must have a valid certificate before marketing or letting, and you must give the tenant a copy free of charge at the start of the tenancy.
What is the current penalty for letting below Band E?
Local authorities can impose financial penalties totalling up to £5,000 per property, plus a publication penalty. Separate maxima apply to short lets, longer lets, false exemption information and ignoring a compliance notice.
Will spending now count towards the future cost cap?
The government response says eligible spending on energy efficiency measures from 1 October 2025 is expected to count towards the planned £10,000 cap. That is policy, not yet a regulation.
This guide is provided for informational purposes only and does not constitute legal advice. LLCR is a compliance management platform, not a law firm. For advice specific to your situation, consult a qualified solicitor.
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