Navigating EPC changes: The risks, costs and compliance

Thu 09 Apr 2026

An Energy Performance Certificate (EPC) is a document that assesses the energy efficiency of a property. It also highlights areas for improvement, outlining potential upgrade costs and estimating how much could be saved on annual energy bills once those changes are made. The EPC system is expected to undergo its most significant changes in over a decade, with reforms currently proposed for implementation by 2030. However, there remains a degree of scepticism, as previous government deadlines relating to EPC regulations have been delayed.

To understand the proposed reforms, it is important to first consider how EPCs currently operate. At present, properties are given a single headline rating from A to G, with E being the minimum required rating for private rental properties in England and Wales. This rating is calculated using the Standard Assessment Procedure (SAP), which is largely based on the estimated cost of heating, lighting, and hot water within a property. Because this system prioritises cost efficiency rather than carbon reduction or overall environmental performance, it can produce counterintuitive outcomes. For example, installing a new gas boiler may improve a property’s EPC rating, despite not being the most environmentally friendly solution.

Under the proposed reforms, EPCs would move away from a single overall rating and instead present four key performance metrics:

·         Fabric performance – how effectively the building retains heat

·         Heating system performance – the efficiency and carbon impact of the heating system

·         Smart readiness – the property’s ability to support smart energy technologies

·         Energy cost – displayed as an estimated annual energy bill rather than a rating

 

The fabric performance standard is expected to be mandatory, with a strong focus on insulation and window efficiency. Once this standard is achieved, landlords may have flexibility in how they improve the remaining metrics, for example, by installing a heat pump to enhance heating performance or adding solar panels to improve smart readiness.

The overall aim of these changes is to shift the focus away from short term cost efficiency and towards long term energy performance and reduced carbon emissions, while encouraging the adoption of low carbon technologies. Despite these positive intentions, many within the private rented sector have raised concerns. Ongoing uncertainty around implementation timelines has led to hesitation, with landlords unsure when to begin upgrading their properties. A key risk is that improvements made now may not align with future requirements, meaning there is no guarantee that current investments will ensure compliance under the revised system.

 

The financial implications are also significant. Government estimates suggest that upgrading a typical private rented property to meet higher energy standards could cost several thousand pounds on average. As a result, some landlords, particularly those with smaller portfolios, may consider exiting the market if sufficient financial support is not made available.

Letting agents also have valid concerns. Stricter EPC requirements could reduce the supply of compliant rental properties, impacting business performance and increasing competition. In addition, there is a growing risk of misinformation and poor quality solutions being marketed as quick fixes, which may ultimately jeopardise compliance.

 

For these reasons, it is essential to recommend well researched, effective improvements that deliver genuine energy performance benefits. If you are concerned about your property’s EPC rating or require a renewal, please contact us on 020 8882 7888 or email [email protected].