EPC Requirements in 2025: All New Rental Lets Must Meet Minimum EPC ‘D’ Rating

What’s Changing?

From 31 March 2025, new rules will come into force requiring all newly rented properties in England to have a minimum Energy Performance Certificate (EPC) rating of ‘D’ or above.

This is part of the UK government’s long-term plan to:

Improve energy efficiency in homes
Lower carbon emissions
Reduce fuel poverty
Protect tenants from unaffordable energy bills

Landlords who let properties rated E or below will no longer be able to issue new tenancies unless their property qualifies for an exemption.

What Is an EPC?

An Energy Performance Certificate (EPC) is a legal document that rates the energy efficiency of a building on a scale from A (most efficient) to G (least efficient). The certificate:

Is valid for 10 years
Includes recommendations for improvement
Must be available to tenants when a property is marketed or let

Under current law, properties must have a rating of E or higher, but that minimum is rising to D from March 2025.

What This Means for Landlords

If you’re a landlord with older or poorly insulated properties, this rule has direct and urgent implications:

You cannot let or renew a tenancy in a property with an EPC of E, F, or G
You must carry out necessary improvements to raise the EPC rating to D or better
You may apply for an exemption in certain cases, such as:

The cost of improvements exceeds the legal spending cap
The property is listed or structurally restricted from upgrades
All reasonable improvements have already been made

Exemptions must be registered on the official PRS Exemptions Register and renewed every five years.

Common EPC Improvements

To improve your EPC score, you might need to:

Install or upgrade loft and wall insulation
Replace old boilers with high-efficiency models
Install double-glazed windows
Add smart heating controls
Upgrade lighting to LED systems
Improve draft proofing and floor insulation

Some improvements are low-cost, while others—like full insulation or boiler replacement—can be more expensive. However, grants and loans may be available through schemes such as ECO4 or local council funding.

What This Means for Tenants

Tenants benefit directly from this reform:

Warmer homes with better insulation
Lower energy bills, especially during winter
Healthier living conditions, particularly for children, elderly tenants, and those with respiratory issues
Increased transparency—tenants will know the property meets minimum efficiency standards

If a property does not meet the minimum EPC ‘D’ requirement, tenants may refuse to sign a new agreement or report the property to local authorities.

Enforcement and Penalties

From March 2025, enforcement will be stepped up, particularly in areas with known issues around cold or substandard housing. Non-compliant landlords may face:

Fines of up to £5,000 per property
Inability to let or renew tenancies
Referral to housing enforcement teams or local authorities

Authorities will be able to check EPC ratings easily using the national EPC Register and may begin proactive enforcement using the upcoming Renters’ Database.

How to Prepare Now

Landlords should act before the deadline to avoid penalties and void periods. Recommended steps:

Check EPC ratings for every property you own (use epcregister.com)
Book an updated EPC assessment if your current certificate is over 8 years old
Plan and schedule necessary improvements—many tradespeople are already booking into 2025
Keep records of all work done to show compliance or apply for an exemption if needed
Speak to your letting agent or local authority about potential funding support

Final Thoughts

The EPC ‘D’ requirement is one of the earliest and most time-sensitive changes in the government’s rental reform strategy. It reflects growing pressure to address energy efficiency, climate targets, and tenant wellbeing in the housing sector.

For landlords, this is both a compliance challenge and a long-term investment opportunity. More efficient homes attract better tenants, reduce maintenance costs, and future-proof your property against further regulation.

Act now - March 2025 is closer than it seems.

About LuArl Nest Estate Agents

At LuAr Nest, we believe in clear, honest service for both tenants and landlords. Whether you’re looking to rent your next home or find the perfect tenant, our team is here to guide you every step of the way.