The government has confirmed the biggest change to rental property energy standards in a decade. Every private rented home in England must meet EPC C or equivalent by 1 October 2030, assessed against a new dual-metric compliance model built on the Home Energy Model. A £10,000 cost cap per property replaces the previous £3,500 limit, heritage exemptions have been removed, and the way EPCs measure your property is about to change fundamentally. Here is what it all means.
Government Confirms EPC C for All Private Rented Homes by October 2030
· Source: GOV.UK
Published on 21 January 2026 as part of the £15 billion Warm Homes Plan, the government's response to its consultation on private rented sector energy standards sets a single compliance deadline of 1 October 2030 for all tenancies. The earlier phased approach — 2028 for new tenancies, 2030 for existing — has been dropped in favour of one date.
The headline standard is EPC C, but what “C” means is changing. Rather than the single Energy Efficiency Rating used today, compliance will be measured against two of the four new EPC metrics being introduced under HEM: a primary Fabric Performance rating plus a choice of either Heating System or Smart Readiness as a secondary metric. The cost cap has been set at £10,000 per property every 10 years — lower than the £15,000 originally proposed. Maximum enforcement penalties rise to £30,000 per property per breach.
The announcement also removes the blanket heritage exemption for listed buildings, bringing them into scope for the first time, and expands EPC requirements to whole HMOs and short-term rental properties. The government estimates around 2.5 million PRS properties currently fall below EPC C, with an average upgrade cost of approximately £5,400.
What this means: Every landlord in England needs to understand the new dual-metric system and plan improvements now. The October 2030 deadline sounds distant, but the switch to HEM-based EPCs from October 2026 means the way your property is rated changes well before you need to comply.
Dual-Metric Compliance: Fabric First, Then Choose Your Second Standard
· Source: GOV.UK
The new compliance model requires landlords to meet band C on Fabric Performance (measuring walls, roof, windows, floors, and airtightness) as the primary standard. They then choose one secondary metric: either Heating System (efficiency and carbon intensity) or Smart Readiness (capacity for smart technologies like solar PV, batteries, and smart meters).
The critical detail: no property relying on a primary fossil-fuel heating system can achieve band C on the Heating System metric. Gas boilers, even the most efficient condensing models, are capped at band D. This means landlords with gas heating must either upgrade to a heat pump or heat network (Heating System route) or install solar PV and smart technologies (Smart Readiness route).
What this means: The choice of secondary metric is a strategic decision. Properties with gas boilers cannot use the Heating System route — but the Smart Readiness route (solar PV + smart meter) may be cheaper than replacing the heating system entirely.
£10,000 Cost Cap: Lower Than Proposed, But Nearly Triple the Old Limit
The cost cap has been set at £10,000 per property every 10 years — reduced from the £15,000 proposed in consultation but nearly triple the current £3,500 limit. If a landlord spends up to the cap without reaching the standard, they can register an exemption. The EPC assessment itself and specialist retrofit advice both count toward the cap.
A “Property Value Adjustment” reduces the cap for properties valued under £100,000 to 10% of the property value. Qualifying expenditure has been backdated to 1 October 2025, so improvements already made count. The cap will be reviewed every five years from 2030 but does not automatically increase with inflation.
What this means: The £10,000 cap covers most typical upgrades (the government estimates average spend at £5,400) but may be insufficient for solid-wall properties or those needing heating system replacement plus fabric improvements. Keep receipts from October 2025 onwards.
Grandparenting: Why Acting Before October 2029 Could Save You a Decade
· Analysis: HEM Guide
One of the most strategically important details in the announcement is the grandparenting provision. Properties that achieve EPC C before 1 October 2029 — under either the current Energy Efficiency Rating or the new HEM-based metrics — are treated as compliant until their EPC expires. Since EPCs are valid for 10 years, a C rating obtained in 2027 under the current system would remain valid until 2037.
This creates a powerful incentive for early action. Landlords with properties close to the C/D boundary under the current rating system may find it easier and cheaper to secure a C rating now than to wait for the new HEM-based assessments, which could rate the same property differently.
What this means: If your property is borderline D/C, getting an EPC under the current system before October 2029 could lock in compliance for a decade. This is especially relevant given that HEM may rate some properties less favourably than RdSAP.
Industry Reaction: Relief on Timeline, Concern on Costs and Capacity
· Sources: NRLA / Propertymark / CLA
The NRLA acknowledged the government had “clearly listened” to its proposals but maintained concerns about a “chronic shortage of tradespeople” and the adequacy of financial support. Over 900 landlords attended an NRLA webinar, submitting more than 200 questions. Propertymark called the plans “deeply concerning”, warning that landlords may withdraw properties from the market, reducing supply and driving up rents. The CLA was more positive, welcoming the grandparenting provision and the cost cap.
What this means: Approximately 52% of PRS properties — around 2.5 million homes — currently sit below EPC C. The scale of the challenge is substantial, but the four-year window and cost cap provide a framework that was absent from earlier proposals.
How HEM Changes Your EPC Rating — Even Without Physical Changes
· Analysis: HEM Guide
The shift from RdSAP to HEM for existing dwelling EPCs means every property will be assessed using a fundamentally different methodology. HEM uses half-hourly dynamic simulation across 17,520 timesteps per year, replacing RdSAP's simplified monthly model. The government has targeted “close equivalence” at the C/D boundary between old and new metrics, but acknowledges that some properties will receive different ratings under HEM with no physical change.
The exact band boundaries for each new metric are still being decided — the HEM EPC consultation closes on 18 March 2026. New HEM-based EPCs will launch from October 2026, running alongside the current system until October 2029 when the legacy rating is discontinued. How HEM treats your property type — particularly solid-wall, pre-1919, and non-standard constructions — will only become clear once the band boundaries are finalised.
What this means: Do not assume your current EPC C will translate into a C under HEM. Landlords with borderline properties should understand the new metrics and consider whether early action under the current system is the safer strategy.
Background & Context
The current MEES rules, in force since April 2018, require private rented properties to meet a minimum of EPC E with a £3,500 cost cap. These rules have been widely criticised as too weak — the vast majority of properties already met the E threshold, and the low cost cap meant landlords with genuinely inefficient properties could claim an exemption after minimal spend. The move to EPC C with a £10,000 cap represents a step change in ambition.
This announcement sits within the broader EPC reform programme. The government is simultaneously replacing the assessment methodology (moving from RdSAP to HEM), redesigning what EPCs measure (from a single cost-based rating to four distinct metrics), and raising the bar for rental properties. These three changes interact in important ways — particularly the fact that a property's rating may shift when assessed under the new methodology.
For landlords who also own properties affected by the Future Homes Standard, the connection is less direct but still relevant. New-build rental properties completed under the FHS will comfortably exceed EPC C, as the FHS requires 75–80% lower carbon emissions than the 2013 baseline. The MEES challenge is concentrated in existing stock, particularly pre-1919 solid-wall properties, which make up a disproportionate share of the private rented sector.
Compliance Timeline
| Date | Milestone | What It Means |
|---|---|---|
| Oct 2025 | Qualifying expenditure begins | Improvement costs from this date count toward the £10,000 cap |
| Oct 2026 | New HEM-based EPCs launched | Four new metrics available alongside the current rating system |
| 2027 | MEES legislation enters force | Legal framework for the raised standard is in place |
| Oct 2029 | Legacy EPC rating discontinued | Grandparenting cut-off — last chance to secure a C under the current system |
| Oct 2030 | Compliance deadline | All PRS tenancies must meet the standard or hold a valid exemption |
For the full picture including FHS, HEM, and EPC reform milestones, see our Timeline & Status page.
What Landlords Should Do Now
The October 2030 deadline gives a four-year window, but several factors mean early action is advisable:
- Check your current EPC rating. If you are already at C or above, your existing EPC remains valid until it expires. No action is needed until renewal.
- If you are at D, consider acting before October 2029. The grandparenting provision means a C rating under the current system locks in compliance for up to 10 years. Targeted improvements (loft insulation, cavity wall insulation, LED lighting, heating controls) may be enough to push a borderline D to C under RdSAP.
- Understand the new metrics. Decide whether the Heating System or Smart Readiness route makes more sense for your property. Gas boilers cannot achieve band C on the Heating System metric — but solar PV plus a smart meter could achieve C on Smart Readiness without changing the boiler.
- Keep records of all improvement spending from October 2025 onwards. EPC assessments and specialist advice both count toward the £10,000 cap.
- Respond to the HEM EPC consultation before 18 March 2026. The band boundaries that will determine exactly what “C” means under the new system are still being decided. Landlord input matters.
For detailed guidance on how EPCs are changing and what the new metrics mean in practice, see our EPC Changes guide and How EPCs Change under HEM.
What to Watch Next
The HEM EPC consultation closes 18 March 2026. Once the government publishes its response, the exact band boundaries for each new metric will be confirmed — this is when landlords will be able to calculate precisely what improvements their properties need.
The MEES secondary legislation is targeted for 2027. When laid before Parliament, it will set the final legal requirements including the detailed exemption framework. Watch for:
- Band boundary confirmation — expected after the March consultation closes
- New-style EPCs going live from October 2026 — this is when landlords can first see how their properties rate under the new metrics
- Portfolio cost cap decision — whether larger landlords can pool the £10,000 cap across properties remains under exploration
- Installer workforce growth — the government targets growing retrofit capacity from 60,000 to 240,000 workers by 2030; early movers will have better access to tradespeople
Frequently Asked Questions
When must private rented homes meet EPC C?
All domestic PRS properties must meet EPC C or equivalent by 1 October 2030. This is a single deadline for both new and existing tenancies — the earlier phased approach (2028 for new, 2030 for existing) was dropped in favour of one date.
What is dual-metric compliance?
Instead of a single EPC band, landlords must meet two standards: the primary Fabric Performance metric (building envelope quality) plus a choice of either Heating System or Smart Readiness as the secondary metric. This gives landlords flexibility — choose whichever secondary metric is more achievable for your property. See our guide to the new EPC metrics for full details.
How much will landlords have to spend on energy efficiency improvements?
The cost cap is £10,000 per property every 10 years. If you spend up to this amount without reaching the standard, you can register an exemption. Properties valued under £100,000 have a reduced cap of 10% of the property value. The average actual spend is estimated at around £5,400 per property. Qualifying spend has been backdated to October 2025, so improvements already made count.
Will my current EPC C rating still count?
Yes, if obtained before 1 October 2029. Properties with a valid EPC C under either the current or new methodology are treated as compliant until that EPC expires (up to 10 years). A C rating obtained in 2027 could remain valid until 2037. However, be aware that HEM may rate your property differently to SAP/RdSAP — some properties currently at C may not retain that rating when reassessed.
Related Pages
How EPCs Change Under HEM
The four new metrics, what they measure, and how the new EPC design affects homeowners and landlords.
New EPC Metrics Explained
Fabric Performance, Heating System, Smart Readiness, and Energy Cost — what each metric measures and how banding works.
EPC Changes for Homeowners
What the new EPC system means for property values, selling, renting, and improvement recommendations.
Timeline & Status
Live tracker of HEM, FHS, EPC reform, and MEES milestones.