Everything You Need to Know About the 2025 EPC Changes for London Landlords
As environmental issues and energy-efficient standards continue to develop, landlords in London need to be aware of new regulations and changes; take it seriously or be left behind in property ownership and claim to run rental properties that are ‘up-to-standard.’ One of the biggest changes is the 2025 Energy Performance Certificate (EPC) changes that are on the horizon. This guide will provide you with all the information you need about what is happening to EPCs and the impact this may have on your rents.
What Is an EPC Certificate ?
It is a document which assesses the energy of the properties from efficient to inefficient.
It also provides recommendations for improving the energy performance of that building. In the UK, EPCs are a legal requirement when renting or selling a property.
In London, landlords would benefit from a valid EPC which is not just a legal requirement to tick off, but it may be a proactive way of appealing to prospective tenants that are energy efficient, as it may attract a better quality tenant, perhaps improving the property value and reducing running costs.
What Changes to EPCs Have Been Introduced for 2025?
After 1 April 2025, all new property must have a minimum energy performance of EPC C, so even if you are considering a new tenancy before this date, the new EPC is a consideration. This requirement increases from “E” on its face value alone. It should be noted that as of 1 April 2028, this provision is applicable to all existing tenancies.
Why The Change?
The UK government has made these changes as a part of their Net Zero 2050 commitment; they have long sought to do this to achieve carbon reductions and enhanced energy efficiency as a matter of policy. Residential homes are a leading source of carbon emissions, and increasing EPC requirements is regarded as prudent and effective to drive waste appropriately.
Who will be affected?
The new regulations will affect mainly the private landlords–those letting residential properties. This covers:
- Buy-to-let landlords
- Portfolio landlords
- Accidental landlords
- Short-term or rental property owners taking part in Airbnb-style letting
All types of accommodation–self-contained flats, houses, HMOs, and converted flats, need to comply, although it is older and less energy-efficient properties that will probably be the most in need of work.
What Do The Changes Mean?
To comply with the new EPC C minimum requirement, landlords will have to upgrade their properties through:
- Installing improved insulation
- Upgrading the windows to double glazing
- Replacing inefficient heating systems
- Adding renewable energy features such as solar panels
EPCs should have an expiry date of 10 years and enforcing Local Authorities must ensure compliance, which could lead to a maximum penalty of £30,000 for a landlord in non-compliance.
What’s Next?
An understanding of the next steps and timings is important to stay ahead:
April 2025: It is compulsory for all latest properties having a minimum EPC rate of C .
April 2028: This will apply to all active properties.
Landlords should use the time wisely to plan and budget for, and implement required upgrades.
What Are the Benefits?
Meeting the new EPC standards will involve an upfront cost; however, compliant landlords will have long-term benefits:
- Reduced energy bills: More efficient properties are less expensive to heat and maintain.
- Increased property value: Properties that achieve a higher EPC rating often will sell or rent for a higher price.
- Increased demand from tenants: Tenants that care about the environment are starting to seek out energy-efficient homes.
- Future-proofing: It is essential to keep your property rentable as regulations evolve.
Landlords can also access government grants or funding schemes, including the Green Homes Grant (if it is extended) or energy-saving schemes established by local councils, to pay for some of the works.
How to Prepare?
If you are based in London, you will hopefully want to take full advantage of the time available before the 2025 deadline.
- Check your current EPC rating—this could help you determine the extent of work you need to do in order to improve your property.
- Book a new EPC assessment—this is particularly important if your certificate is nearing expiry or doesn’t reflect recent improvements made. You will need to search for accredited providers of EPC certificates in London.
- Carry out energy audits—you should establish what improvements you can make to your property and identify the most economic improvements that will catch your property up to a C rating at the lowest cost.
- Invest in improvements—every property is different, but make sure you are considering insulation as well as efficient heating and lighting.
- Seek advice—choose a reputable company that provides expert London EPC services and research if they can offer energy upgrade home improvements tailored to suit your property.
- Keep records—you must keep any upgrade and EPC certificates as proof of upgrades and may need to submit this to avoid monies owed if you breach the regulations.
If you are unsure where to start, there are many independent businesses that offer full-service packages that include everything from surveys to certification. A quick search for Energy Performance Certificate London will quickly show you a number of reliable companies.
Conclusion
The EPC regulations set to change in 2025 mark a significant change in the United Kingdom’s rental market, most significantly in environmentally conscious cities such as London.
Don’t wait until you are darting towards the deadline to have your EPC Certificate in London renewed, to have a discussion with London EPC services, or to take smart energy choices today.