What EPC Rating Do Landlords Need to Rent Out a Property?
Not sure what EPC rating your rental property needs to meet because the rules are about to change. Since April 2020, the minimum EPC rating to rent out a property in England and Wales has been Band E. But from 1 October 2030, every privately rented home must reach Band C or face a fine of up to £30,000. This guide is provided by the property management company that covers the upcoming changes, MEES exemptions, penalties, and how Scotland differs.
| Key takeaways: The current minimum EPC rating to rent in England and Wales is Band E.Properties rated F or G cannot be legally let without a registered exemption.From 1 October 2030, all rentals must reach Band C because over 1.82 million homes currently fall short.Non-compliance fine rises to £30,000 per property from 2030.Cost cap for upgrades is £10,000 per property. Scotland is stricter because they require Band C for all tenancies by 2028. |
What EPC Rating Do You Need to Rent a Property?
The lowest EPC rating required for renting out a property in England and Wales is band E. It applies to all new and existing assured tenancies under the Domestic Minimum Energy Efficiency Standard, known as MEES. If a property is rated F or G, it cannot be legally let without the registered exemption on the PRS register.
What Is the MEES Regulation?
It stands for Domestic Minimum Energy Efficiency Standards. It is the legal framework that sets the minimum rating landlords must meet before renting out residential property in England and Wales. The regulations were introduced in April 2018 under the Energy Efficiency Regulations 2015.
When it was launched, it covered only new tenancies and renewals. In 2020, this was extended and included existing tenancies as well. It was introduced due to these four reasons
- To reduce greenhouse gas emissions from poorly insulated homes.
- Reduce the energy cost for tenants in private rented accommodation.
- Improve the overall condition of rented properties.
- Decrease the long-term maintenance cost for landlords.
Is The Minimum EPC Rating For Renters Changing?
The EPC rating is changing as the government announced plans on 7 February 2025 to raise the minimum EPC rating for all private rented homes to Band C in Wales and England. These changes are part of the Warm Homes Plan to reduce fuel poverty by 2030. The deadlines for these changes to follow for
- New tenancies must reach Band C by 2028.
- All tenancies must reach Band C by 1 October 2030.
There is hope for the tenants that an average of £240 a year on energy bills will be saved.
How Much Will It Cost Landlords to Reach EPC C?
The government estimates the cost is between £6,100 and £6,800 per property. The landlords require a maximum of £10,000 for energy efficiency improvements to band C. This cost is valid from 1 October 2025, so any expenditure will be counted. But for properties that have a value under £100,000, the cost cap is reduced by 10% of the property’s value.
The NRLA has called on the government to introduce a targeted funding package. They point out that 2.5 million privately rented homes still fall below Band C. They have also raised serious concerns about the chronic shortage of tradespeople, warning this alone could make the 2030 deadline very hard to meet.
Will the EPC Assessment Method Change?
The way EPC ratings are calculated is changing from 1 October 2029. The current method is based on energy cost alone, which the government has acknowledged is unreliable. These ratings can vary due to assessors on the same property. The new Home Energy Model will assess properties against these six metrics:
- Fabric performance
- Carbon emissions
- Energy use
- Heating system efficiency
- Smart readiness
- Energy cost
The landlords should know that the properties that now hold the band C will not be able to achieve the same band status in the new system. Any property that has not confirmed crating before 1 October 2029 will be measured against the new metrics. These factors are strict, and it’s harder to achieve them. The new assessment will also cost more than the current EPC.
What are the exemptions to the EPC minimum standards?
It gives legal permission to landlords to let the property by ignoring the EPC rating standards. The government does not provide these, but the landlords make them. These legal policy exemptions include the
- If improvement of the EPC band costs more than £3,500 including VAT, then the landlord can register for the high-cost exemption.
- Every possible upgrade within the cost cap has been completed, but the property still falls short.
- In case the only possible upgrade is wall insulation for improving the EPC band in this situation, the landlord can ignore it because it can damage the structure of the building.
- The property devaluation is the exemption that a landlord can make when their property value reduces by 5% or more.
- Third-party consent exemption when the landlord, tenant, or freeholder refuses to make the improvements in the property.
- New landlord exemption that requires the 6-month grace period for inherited tenancies.
| Note: Any exemptions should be recorded on the PRS Exemptions Register. Supporting evidence such as contractor quotes or surveyor reports should be retained on file. |
What Should Landlords Do If Their Property Is F Or G?
Landlords cannot rent out the property because this rating is considered illegal for renting the property. They have to first improve the EPC band to E at least before renting out the property. The common upgrades that can be made for improving the EPC band from F to G are given below:
- Loft insulation.
- Cavity wall insulation.
- Double or triple glazing.
- Upgrading the heating system, including heat pumps.
- Switching to LED lighting.
If the landlord spends the £3,500 but the improvement in the energy band does not occur, then they can register a high cost exemption. Properties already being let with an F or G rating without a valid exemption are in breach of MEES immediately. In this situation, landlords should take action to keep themselves safe from breaches and enforcement action from the local authority.
Do EPC rules apply in Scotland?
Yes, but Scotland runs its own timeline, separate from England and Wales.
- Minimum EPC rating to let a property: Band E from 2024
- New tenancies: must reach Band C from 2025
- All tenancies must reach Band C by 2028
New homes built under a building warrant applied for on or after 1 April 2024 cannot use direct-emission heating systems.
Exemptions in Scotland
Properties exempt from EPC requirements include:
- Listed buildings.
- Residential buildings used less than 4 months a year.
- Buildings scheduled for demolition.
- Buildings intended for use for less than 2 years.
- Standalone buildings under 50 square metres.
Penalties in Scotland
Local authorities can issue penalty charge notices for non-compliance. Fines reach up to £5,000 for failing to provide a valid EPC when letting or selling a property. The exact amount depends on the building’s rateable value.
Conclusion
The minimum EPC rating to rent out a property is Band E, but Band C will become the legal requirement from 2030, so acting early is far smarter than waiting. Six MEES exemptions exist for properties where improvements are not viable, all requiring registration on the PRS Exemptions Register.
Scotland moves faster because Band C is already required for new tenancies from 2025. You should speak to a property management expert today to make sure your portfolio is ready.
