EPC Rules in 2025

What You Need to Know (and What You Don’t)

Energy efficiency regulations are evolving, and landlords in Newcastle, Gateshead, and Northumberland must stay informed to ensure compliance and maintain property value.

What’s Changing?

The UK government has proposed increasing the minimum EPC rating for rental properties from E to C. This change would apply to new tenancies from 2028 and all existing tenancies from 2030.

Additionally, a consultation on reforming the EPC system closed in February 2025, with plans to overhaul the EPC system in 2026. The new system would focus more on how properties retain heat rather than how much energy they use.

What Will It Cost?

Upgrading properties to meet the new standards could cost landlords between £6,100 and £8,000 per property. However, a spending cap of £15,000 is proposed to limit expenses.

A study found that 33% of landlords considered making their property more energy efficient their biggest challenge, with 11% anticipating energy efficiency improvements could cost them over £10,000.

Why It Matters

Improving your property’s EPC rating can lead to:

• Lower tenant energy bills: A tenant living in an average property with an EPC C rating would pay £499 less a year in utility bills compared to a tenant living in an average property with an EPC D rating.

• Increased tenant demand: Energy-efficient homes are more attractive to tenants, potentially reducing vacancy periods.

• Higher rental yields: Properties with higher EPC ratings may command higher rents.

️ What Should Landlords Do Now?

1. Assess Current EPC Ratings: Review your property’s current energy efficiency status to determine necessary improvements.

2. Plan Upgrades Strategically: Focus on cost-effective measures like insulation, double glazing, and energy-efficient heating systems.

3. Stay Informed: Keep abreast of legislative developments and available government support to make informed decisions.

4. Consider Exemptions: If meeting the new standards is not feasible, explore possible exemptions, especially for properties requiring third-party permissions.

Timeline at a Glance

• 2026: Expected overhaul of the EPC system.

• 2028: Proposed requirement for all new tenancies to have an EPC rating of C or above.

• 2030: Proposed requirement for all existing tenancies to have an EPC rating of C or above.

Staying proactive and informed will help landlords navigate these changes effectively, ensuring compliance and maintaining the value and appeal of their rental properties.