NRLA Welcomes Government’s EPC 'C' Deadline: What London Landlords Must Do Now
The UK government’s new mandate requiring all rented homes to have an Energy Performance Certificate (EPC) rating of at least 'C' by 2030 marks a significant change for landlords. This article explains the practical implications for London landlords, highlights risks, and outlines clear steps to ensure compliance and protect rental income.
Understanding the EPC 'C' Requirement
In a recent announcement supported by the National Residential Landlords Association (NRLA), the UK government confirmed that all rented homes must meet a minimum EPC rating of 'C' by 2030. This builds on earlier regulations—since 2018, no new tenancies have been granted to properties rated below EPC 'E'. The 2030 deadline raises compliance standards, impacting approximately 1.5 million privately rented homes nationwide, with a significant number in London.
Why This Matters for London Landlords
Energy efficiency is now a regulatory certainty rather than a long-term aspiration. For London landlords—whether managing a single flat, an HMO in Zone 2, or a multi-property portfolio—this affects:
- Financial planning: Upgrading properties can require substantial capital expenditure. Without early planning, landlords risk costly last-minute refurbishments.
- Compliance and legal risk: Failure to meet the EPC 'C' rating by 2030 will legally prohibit renting out affected properties, risking rental income and potential enforcement action.
- Tenant relations: Tenants increasingly value energy efficiency for comfort and reduced bills. Proactively communicating planned improvements can enhance tenant satisfaction and retention.
Key Practical Implications
Assess Current EPC Status Immediately
Start with a comprehensive audit of your portfolio’s EPC ratings. Single landlords should review existing EPC certificates or commission new assessments if needed. Portfolio landlords should consider engaging energy assessors for a systematic review.
Plan and Budget for Improvements
Typical upgrades to reach EPC 'C' include improved insulation (walls, lofts), efficient boilers or heating systems, double glazing, and possibly renewable energy installations like solar panels. Costs vary; retrofitting a Victorian terrace flat in London can be more complex and expensive than a newer build.
While no official average cost figures are published, sector surveys suggest a range of £5,000 to £15,000 per unit, depending on property age and type. Obtaining quotes from qualified contractors can help establish local benchmarks.
Engage Qualified Professionals Early
Landlords should engage certified energy assessors and reputable contractors early to identify cost-effective improvements, prevent surprises, and facilitate phased works to minimise tenant disruption.
Communicate Promptly With Tenants
Transparency about upcoming works helps manage expectations, avoid disputes, and positions landlords as responsible and proactive—valuable in London’s competitive rental market.
Monitor Further Government Guidance
The government may issue additional guidance on compliance monitoring, exemptions, or grants. Landlords should stay updated to benefit from funding or tailored advice.
Tailoring Approaches by Landlord Profile
- Single-unit landlords: Focus on early EPC assessment and budgeting; consider phased upgrades.
- HMO landlords: Coordinate upgrades carefully to minimise tenant disruption and comply with licensing.
- Portfolio landlords: Prioritise worst-performing properties, optimise procurement through bulk contracting, and integrate compliance into asset management.
- Accidental landlords: Often less prepared; seeking professional advice is essential to avoid unexpected costs or legal issues.
Next Steps for London Landlords
- Schedule EPC audits immediately to establish baselines.
- Create a compliance roadmap aligned with the 2030 deadline.
- Obtain multiple quotes from qualified contractors.
- Develop tenant communication plans covering expected works and benefits.
- Review and adjust rent and investment strategies considering upgrade costs and improved property desirability.
How Rentals & Sales Can Support You
Our specialist team offers tailored portfolio reviews assessing EPC compliance risks, comprehensive compliance audits, and bespoke pricing strategies reflecting your property’s energy efficiency upgrades. We prioritise investments to protect rental income and enhance asset value.
Compliance Disclaimer: This article summarises current government policy and NRLA guidance as of mid-2024. Landlords should consult official sources and qualified professionals to ensure full compliance with evolving regulations.