The days of ignoring your EPC rating are over.
As of 2025, rental properties in England and Wales must meet an EPC rating of C or above to be legally let to new tenants. And by 2028, this applies to all existing tenancies. For landlords, this isn’t just a regulation; it’s a shift in how properties are valued and occupied.
Here’s what this means:
Upgrade Pressure:
Landlords must now invest in insulation, double glazing, energy-efficient boilers, or heat pumps. For older properties, this could mean £10,000+ in retrofit costs; a tough pill for those already stretched by mortgage hikes.
Market Segmentation:
Properties with D or E ratings are increasingly becoming less attractive to tenants and buyers. Conversely, energy-efficient homes are renting faster and commanding premium pricing; especially among younger, climate-conscious tenants.
Valuation Impact:
Surveyors are starting to factor EPC ratings into valuations, especially for buy-to-let investors. Poor energy ratings are now an asset risk, not just a legal issue.
Strategic Opportunity:
For forward-thinking landlords, upgrading now creates long-term gains: better tenants, fewer voids, and higher property value.
At DXXV, we help landlords audit, plan, and execute upgrades strategically; balancing regulation compliance with long-term ROI.