Energy Performance Certificates (EPCs) are once again a major talking point in the UK property sector, and for landlords, they’re more relevant than ever. While the government’s previous plans to raise the minimum EPC rating to C by 2025 for new tenancies, and by 2028 for existing ones, were officially scrapped in late 2023, many landlords remain cautious. If anything, this uncertainty has prompted a more proactive mindset across the sector.
At Ashburnham Insurance, we know that landlords are always trying to stay one step ahead of regulation, risk, and market shifts. And when it comes to EPCs, now is a good time to understand why this issue hasn’t gone away, and why preparing early could save time, money, and stress.
The Growing Long-Term Pressure
Despite the government stepping back from a hard deadline, the underlying drivers behind the original proposals remain firmly in place. The UK is still legally committed to its net-zero emissions targets, and the housing sector continues to play a key role in reaching those goals. Even though there’s no immediate legal requirement to upgrade properties to an EPC rating of C or above, landlords are still facing growing pressure from lenders, tenants, and local authorities.
Lenders and Tenants Are Driving Change
One of the biggest influences in this conversation is the mortgage market. Increasingly, buy-to-let lenders are applying their own restrictions based on EPC ratings. Some are offering more favourable rates to landlords whose properties meet higher energy standards, while others are beginning to limit options for those with less efficient homes. For landlords considering remortgaging or expanding their portfolio, a poor EPC rating could narrow the field of available lenders or increase costs over time.
Tenants, too, are driving change. With energy bills still high, renters are becoming more discerning. Energy efficiency isn’t just nice to have; it can significantly affect monthly living costs. In today’s competitive rental market, properties with a higher EPC rating are often more attractive, and landlords with poorly rated homes are starting to feel the impact in the form of longer void periods or the need to lower rents.
Local Enforcement and Insurance Implications
Even local councils are taking more interest in energy efficiency. While national deadlines have been removed, some local authorities are ramping up enforcement around property standards. EPC ratings are increasingly being used as part of broader efforts to improve housing quality, and homes with lower ratings may be more likely to face inspection or scrutiny, particularly where other maintenance issues exist.
What’s more, energy efficiency is beginning to affect property values and insurability. Homes with poor energy performance are starting to lose appeal in the sales market, especially among investors. From an insurance perspective, certain features associated with lower EPC ratings, such as older heating systems or poor insulation, can increase risk and contribute to potential claims, especially during winter months. While EPC scores don’t currently affect insurance premiums directly, many of the factors behind them overlap with risk considerations.
What Landlords Are Doing in 2025
So, what are landlords doing in response to all this? Many are choosing to act now, even without a legal deadline looming. Some are commissioning fresh EPC assessments to understand their current position and identify affordable ways to improve. Others are making energy upgrades during tenant changeovers, when properties are easier to access. Where possible, landlords are also taking advantage of government incentives such as the Boiler Upgrade Scheme or the Energy Company Obligation (ECO4) programme, which can help offset the cost of improvements like insulation or more efficient heating.
Rather than waiting for the return of a formal mandate, which many believe is inevitable, landlords are treating energy upgrades as part of future-proofing their investments. The benefit isn’t only about compliance. Energy-efficient homes are easier to finance, more appealing to tenants, and potentially more valuable in the long term.
A Proactive Approach Protects Your Investment
Improving your EPC rating often starts with simple upgrades that boost energy efficiency. Adding or upgrading insulation, especially in the loft and walls, can make a significant difference. Replacing old boilers with modern, energy-efficient models, installing double glazing, and switching to low-energy lighting are also effective steps. For larger improvements, consider renewable energy options like solar panels. A fresh EPC assessment after making these changes will reflect the improvements and help increase the property’s appeal to tenants and lenders alike.
As energy efficiency becomes a bigger factor in the rental market, staying ahead of EPC requirements is a smart move for any property owner. Making improvements now not only helps protect your property’s value but also reduces future risks, the kind that can impact your bottom line. Having the right landlord insurance in place complements this proactive approach, giving you added protection as regulations and expectations continue to evolve.
Stay Ahead of the Curve
While there may not be a legal requirement to upgrade your EPC rating at this time, ignoring the issue entirely could be short-sighted. The property landscape is shifting, and energy performance is becoming a key part of how value, risk, and compliance are assessed.
From an insurance perspective, we advise landlords to consider the broader picture. Improving a property’s energy efficiency isn’t just about meeting a future requirement. It’s also about reducing exposure to maintenance issues, lowering long-term costs, and enhancing the overall quality of your investment.
At Ashburnham Insurance, we recommend that landlords take the opportunity in 2025 to review their property portfolio with energy performance in mind. A proactive approach now could help avoid rushed decisions, missed funding opportunities, or financial penalties further down the line.