EPC rules for rental properties in 2026, and what landlords actually have to do

The legal minimum for letting out a home in England and Wales is still EPC band E, and the shift to band C which has been much discussed remains only a proposal with no new minimum having been established by law. These two points resolve most of the disputes that landlords are currently having regarding energy rules this year. This is included in the other compliance duties that are covered in our first-time landlord checklist.

Begin by checking what you actually own. The service available on gov.uk for finding an energy certificate will show your property's present rating and expiry date, and also allows you to download the certificate free of charge, so there is no reason for discovering that the EPC has expired during the tenancy.

The standard in force is band E

After 1 April 2020 it has been impossible for you to let, or to continue to let, a property which is the subject of the minimum energy efficiency standard regulations if the property's EPC rating is F or G, unless you have obtained a valid exemption. These rules cover houses in England and Wales that are let on assured, regulated or domestic agricultural tenancies and which are legally required to have an EPC.

An EPC is valid for a period of 10 years and, in accordance with the general regulations concerning Energy Performance Certificates, a certificate must be obtained before a property is put on the market for rental purposes. Local authorities are responsible for ensuring that the minimum standard is met: the fine rises to £2,000 if a non-compliant property is let for a period of three months or less, increases to £4,000 if it is let for longer than that, and the total amount payable per property is capped at £5,000. Reletting a flat that has an F rating while using an expired certificate is an expensive way of cutting corners.

The £3,500 cost cap

You won't be required to spend more than £3,500 including VAT on energy improvements for each property, so any amounts you have spent on eligible improvements since 1 October 2017 should be counted towards the limit; therefore, retain the invoices.

Here's an example: if a terrace receives an EPC report which suggests roof insulation and improved heating controls at costs of £2,100 and £900 respectively, the total cost comes to £3,000 and the property is then placed in band E, the obligation being satisfied without having to spend up to the cap. However, if the single cheapest measure recommended cost more than £3,500, you are able to apply for a high cost exemption, this being supported by three quotations from installers.

Exemptions last five years, not forever

You should register an all-improvements-made exemption on the PRS Exemptions Register if all the relevant improvements are made and the property's rating is still below E. The other types of exemption include cases where third-party consent has been refused, situations in which written expert advice states that wall insulation would harm the building, and instances where a RICS valuer has confirmed that the works would reduce the property's value by more than 5%.

Most of the exemptions last for five years and the temporary exemption for a person who has recently become a landlord lasts for six months. They do not come into effect until you register them.

EPC C is a proposal, not the law

The government is currently consulting on raising privately rented properties in England and Wales to EPC band C or an equivalent rating, with 2030 being its stated aim. According to the official guidance for landlords, it is looking at different policy design options as a result of the consultation and will give more information at a later date. At this time, nothing regarding band C is enforceable and there is no compliance date legally established.

In practice, don't let anyone tell you that band C work is a legal requirement in 2026; instead, plan your actions at natural times, for example, between tenancies or when a boiler needs replacing anyway.

If you are buying or selling a rental this year

Consider the EPC to be included in the price. Since an F rating comes with either £3,500 worth of work or an exemption procedure, you should request the full EPC report and the recommendations it contains before you go ahead, not after the exchange has taken place. If you are working out the figures in relation to a possible future sale, our article on capital gains tax applicable to a rental property explains what tax you will have to pay. When a purchase or sale is being considered, it is possible to compare quotes from regulated firms for conveyancing in just a couple of minutes.