Rented homes in England and Wales currently need an EPC rating of at least E. In January 2026 the government confirmed it will raise that to band C by 1 October 2030, but the regulations haven't been made yet. They need Parliament's approval, and the government aims for them to come into force in 2027. Under the plan, landlords won't have to spend more than £10,000 per property: if you've spent up to the cap on qualifying work and the property still isn't C, you can register an exemption. If your property is rated D or below, now is the time to plan.
This guide covers the current rules, what the 2030 target means, how to plan works sensibly, and why energy upgrades also need to be on your landlord insurance. Check GOV.UK for the final regulations and guidance before you commit to works.
The rules today
Under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, the minimum energy efficiency standards (MEES) say you can't let a property on most tenancies with an EPC rating below E unless you've registered a valid exemption. Councils enforce the rules and can impose financial penalties.
You also need a valid EPC to market and let the property, and you need to give a copy to tenants. EPCs last 10 years, but if you improve the property it can be worth getting a new one.
The 2030 target
The government's response to its 2025 consultation, published in January 2026, confirmed the policy: all private tenancies to meet band C, or the equivalent on new-style EPCs, by 1 October 2030, with:
a £10,000 cap on the cost a landlord must spend per property,
exemptions where the cap is reached or where works aren't possible, appropriate or permitted,
changes to how EPCs measure energy performance, so the rating reflects fabric efficiency, heating systems and smart readiness more fully,
homes rated C or above on the current EPC rating before 1 October 2029 counting as compliant until that EPC expires,
qualifying spending since 1 October 2025 counting towards the cap.
None of this is law yet. The detail will be set in regulations, and until they apply the legal minimum stays at E. Don't rely on a current EPC alone. A rating from years ago may not reflect the property now, or the way it will be measured.
How to plan
Check your current EPC on the government register, and its recommendations.
Get a fresh assessment if the EPC is old or the property has changed.
Get a retrofit survey for D-rated or lower properties to identify the most cost-effective path to C.
Prioritise low-disruption measures first: loft and cavity wall insulation, heating controls, LED lighting, draught-proofing.
Then larger measures: a new boiler or heat pump, solid wall insulation, windows, solar panels.
Time works with voids where possible. Since 1 May 2026, tenancies are periodic and you can't use section 21, so you'll often be doing works with tenants in place.
Keep receipts and records of everything spent, as you'll need them for any cost-cap exemption.
Check for funding. Government and energy-company schemes change, so check what's available when you plan.
Leasehold flats
If you own a flat, some measures, such as external wall insulation, windows or communal heating, may need the freeholder's consent or be the freeholder's responsibility. Start talking to the managing agent early. See our guide to landlord insurance for leasehold flats.
Why energy upgrades matter for insurance
Energy works change the property, and insurers need to know:
Rebuild cost. Insulation, new windows, heat pumps and solar panels can increase the cost of rebuilding the property, so your buildings sum insured may need to go up. See our landlord buildings insurance guide.
Works in progress. Major works may affect your cover while they're happening. Check whether your policy has conditions for building work, and make sure contractors have their own liability insurance.
Unoccupied periods. If the property is empty during works, unoccupancy conditions may apply, often after 30 or 60 days. See our void and unoccupied property insurance page.
New equipment. Tell your insurer about solar panels, battery storage and heat pumps. Some insurers ask specific questions about them.
Construction type. Some external insulation systems change how a building is described. Check with your insurer before work starts.
What if you can't reach C?
The plan includes exemptions, including where the £10,000 cap is reached, or where works would harm the property, need consent that's been refused, or aren't suitable for the building. You'll need to register an exemption and keep evidence. Check the final government guidance before relying on one.
What about selling?
Some landlords are deciding whether to upgrade or sell. That's a personal financial decision, but either way, keep your insurer up to date if the property is empty, marketed for sale or undergoing work.
Working with tenants in place
Since 1 May 2026, tenancies in England are periodic and section 21 no longer exists, so most energy works will happen with tenants living in the property. A few practical points:
Give proper notice before entering, and agree access times in writing.
Explain the benefits, such as lower bills and a warmer home. Tenants are often happy to help when they understand what's happening.
Phase larger works so the property stays habitable.
Plan for disruption. If the tenant has to move out temporarily, check whether your policy's unoccupancy conditions apply.
Don't raise rent outside the rules. Rent increases follow the section 13 process, once a year.
See our Renters' Rights Act guide.
Keeping records for the cap
If you're relying on the £10,000 cap, you'll need clear evidence of what you spent and on what. Keep invoices, the retrofit survey, before-and-after EPCs and a short note explaining why you chose each measure. File them alongside your gas safety record and EICR. See our landlord safety certificates checklist.
EPC and mortgage lenders
Some buy-to-let lenders consider EPC ratings when lending, and some offer products linked to energy efficiency. Check your lender's terms, especially if you're planning to refinance before 2030. Upgrades may also affect the property's value, which is a separate question from its rebuild cost for insurance.
Upgrades and the tenancy
Some measures, such as a new heating system, change how the tenant uses the property. Explain the new system and leave written instructions. If you install solar panels or a battery, record who owns them and whether they're leased, as this matters to your insurer and any future buyer.
Frequently asked questions
What is the minimum EPC rating for a rented property now?
E, unless a valid exemption is registered.
When do rented homes need EPC C?
By 1 October 2030, under government policy confirmed in January 2026. The regulations haven't been made yet, so check GOV.UK for the final rules.
How much will I have to spend?
The plan caps the required spend at £10,000 per property. If you reach the cap and still aren't at C, you can register an exemption.
Does this apply in Scotland?
No. Scotland has its own plans for private rented energy standards.
Will energy upgrades change my insurance?
They can. Works may increase your rebuild cost, and you should tell your insurer about major works, empty periods and new equipment such as solar panels or heat pumps.
Do I need a new EPC after works?
It's usually worth getting one so the rating reflects the improvements.
Plan works with the right cover in place
Send us your current landlord policy or renewal and we'll review it and come back with quotes from the insurers on our panel. Start with your buy-to-let details.
Meshed is a trading name of Mesh'd Limited, authorised and regulated by the Financial Conduct Authority (FRN 1033248). We charge a flat 10% broker fee. This guide is general information, not legal advice.
Vincent Liu
Co-founder & CTO
