EPC Requirements for Landlords in 2026: Minimum Ratings, Costs, and Exemptions
Energy Performance Certificates have been a legal requirement for rental properties since 2008, but enforcement has increased significantly in recent years. This guide covers the current rules, what they mean for your properties, and how to stay ahead of changes.
What is an EPC?
An Energy Performance Certificate rates a property’s energy efficiency on a scale from A (most efficient) to G (least efficient). It includes an estimated energy cost, a breakdown of the property’s energy features (insulation, heating, windows), and recommendations for improvements.
EPCs are produced by accredited Domestic Energy Assessors (DEAs) who visit the property and assess its energy characteristics. The certificate is then lodged on the national EPC Register and is valid for 10 years.
Current minimum EPC requirements
The Minimum Energy Efficiency Standards (MEES) regulations set the legal requirements for EPCs in private rented properties:
Minimum rating: E
Since 1 April 2020, all private rented properties in England and Wales must have an EPC rating of E or above. This applies to all tenancies, not just new ones.
Must have a valid EPC to let
You need a valid EPC before marketing a property to let. The certificate must be available to prospective tenants and included in property listings.
F and G ratings cannot be let
Properties rated F or G cannot legally be rented out unless the landlord has registered a valid exemption on the PRS Exemptions Register.
EPC ratings explained
| Rating | SAP score | Can you let? |
|---|---|---|
| A | 92-100 | Yes |
| B | 81-91 | Yes |
| C | 69-80 | Yes |
| D | 55-68 | Yes |
| E | 39-54 | Yes |
| F | 21-38 | No (unless exempt) |
| G | 1-20 | No (unless exempt) |
Track your EPC expiry dates
CompliLet tracks EPC expiry dates alongside gas safety, EICR, and all other certificates. Get reminders before deadlines and keep your portfolio compliant. Free for your first property.
EPC costs and improvements
EPC assessment cost
A standard EPC assessment costs between £60 and £120 depending on property size and location. Some assessors offer discounts for multiple properties.
Common improvements and typical costs
| Improvement | Typical cost | Impact |
|---|---|---|
| Loft insulation (270mm) | £300 - £600 | Up to +2 ratings |
| Cavity wall insulation | £500 - £1,500 | Up to +2 ratings |
| New condensing boiler | £2,000 - £4,000 | +1 to +2 ratings |
| Double glazing | £3,000 - £7,000 | +1 rating |
| LED lighting throughout | £100 - £300 | Marginal |
| Hot water cylinder insulation | £20 - £50 | Marginal |
| Draught proofing | £100 - £300 | Marginal to +1 |
| Smart heating controls | £200 - £400 | Up to +1 rating |
The most cost-effective improvements are typically loft insulation, cavity wall insulation, and draught proofing. These can often move a property from F to E (or E to D) at relatively low cost.
Available exemptions
If your property has an F or G rating, you may be eligible for an exemption. All exemptions must be registered on the PRS Exemptions Register and last for 5 years.
Cost cap exemption ("all improvements made")
If you have made all cost-effective improvements up to a spending cap of £3,500 (inc. VAT) and the property still doesn't reach an E rating, you can register an exemption. You must provide evidence of the improvements made and their costs.
Wall insulation exemption
If a relevant energy assessor determines that cavity, external, or internal wall insulation is not appropriate for the property (e.g. due to construction type or planning restrictions), this exemption may apply.
Consent exemption
If a third party whose consent is required (e.g. a freeholder, planning authority, or mortgage lender) refuses consent for the necessary improvements, you can register this exemption.
Devaluation exemption
If an independent surveyor determines that the required improvements would reduce the property's market value by more than 5%, this exemption may apply. This is relatively rare.
New landlord exemption
If you have recently become a landlord (e.g. inherited a tenanted property) and the property has an F or G rating, you have 6 months to either improve the property or register an exemption.
Penalties for non-compliance
| Offence | Penalty |
|---|---|
| Letting a property with an F or G rating (less than 3 months) | Up to £2,000 |
| Letting a property with an F or G rating (3+ months) | Up to £4,000 |
| Registering false information on the exemptions register | Up to £1,000 |
| Failure to comply with a compliance notice | Up to £2,000 |
| Maximum total penalty per property | £5,000 |
Penalties are enforced by Trading Standards (via local authority Weights and Measures departments). They also have the power to publish details of the penalty on the PRS Exemptions Register for 12 months.
Future changes to EPC requirements
The government previously proposed raising the minimum EPC rating for rental properties to C by 2025, with a £10,000 spending cap per property. This was scrapped by the then-Prime Minister in September 2023 as part of a wider Net Zero policy reset.
As of March 2026, no new timeline has been announced. However, industry consensus is that tighter EPC requirements will eventually return in some form. The Clean Heat Market Mechanism and the Future Homes Standard (for new builds) signal the direction of travel.
Landlords should consider making improvements proactively, especially when properties change tenants or when boilers need replacing. Investing in energy efficiency now avoids rushed, expensive upgrades when rules tighten.
Frequently asked questions
Do I need a new EPC for each new tenancy?
No. An EPC is valid for 10 years regardless of how many tenancies occur during that period. However, if you make significant energy improvements, it is worth getting a new EPC to reflect the improved rating.
Can I let a property without an EPC?
No. You must have a valid EPC before marketing a property to let. You can be fined up to £200 for failing to make an EPC available to a prospective tenant.
Does the EPC requirement apply to HMOs?
Yes. HMOs need an EPC for the whole building. Individual room EPCs are not required. The MEES minimum E rating applies to HMOs in the same way as standard rental properties.
My property is listed / in a conservation area. Do I still need an EPC?
Listed buildings are technically exempt from EPCs. However, if you choose to get one, the MEES minimum rating still applies. Properties in conservation areas are not exempt but may qualify for wall insulation exemptions if external insulation would require planning permission that is unlikely to be granted.
Track your EPC expiry dates
CompliLet tracks EPC expiry dates alongside gas safety, EICR, and all other certificates. Get reminders before deadlines and keep your portfolio compliant. Free for your first property.