Landlords Face 2030 Deadline for Energy Efficiency – But Is the EPC System Fit for Purpose?

Landlords are under increasing pressure to upgrade their rental properties after the Labour Party reaffirmed plans for all privately rented homes to meet a minimum EPC rating of ‘C’ by 2030. The policy, designed to improve energy efficiency and cut tenant bills, is being framed as a major step towards tackling fuel poverty and making homes more sustainable.

However, while the principle of improving energy efficiency is sound, many landlords are now facing high costs and unclear guidance on how best to meet the new rules. Government-backed funding schemes—such as the Boiler Upgrade Scheme—are promoting heat pumps as the preferred solution, despite the fact that they aren’t always practical for older rental homes.

So, where does that leave landlords? And is the EPC system itself fit for purpose, or does it risk penalising properties that invest in alternative energy-efficient solutions?

What’s Changing for Landlords?

Currently, landlords must ensure their rental properties have a minimum EPC rating of ‘E’—but that’s set to change. Under the proposed rules, by 2030, all privately rented homes must reach at least a ‘C’ rating.

• Around 48% of rental properties already meet this target, but many older homes will require significant investment to comply.

• Upgrades could cost landlords anywhere from £6,000 to £15,000 per property.

• Government grants and schemes focus on heat pumps and insulation, despite the fact that 5 million properties in the UK aren’t suited to these solutions.

Are Heat Pumps the Right Solution for Landlords?

One of the biggest talking points is the government’s push towards heat pumps as the preferred solution for landlords. Through the Boiler Upgrade Scheme, grants of up to £7,500 are available to help with the installation of heat pumps as a replacement for gas boilers.

However, while heat pumps are a highly efficient option in the right circumstances, they come with significant challenges:

• High upfront costs – Even with the grant, heat pumps cost between £7,000 and £14,000, meaning landlords may still need to cover a significant portion of the expense.

• Not suitable for all homes – Heat pumps work best in well-insulated properties with underfloor heating or large radiators. Many older rental properties lack the required insulation and may need additional costly upgrades to work effectively.

For landlords, this raises a major question: is it worth investing in a heat pump now, or will further EPC reforms allow for better alternative electric heating solutions in the coming years?

The EPC Checklist: A Flawed System?

As a company that provides highly efficient electric heating solutions, one of the biggest frustrations is how the EPC system undervalues modern electric heating systems.

Despite advances in modern, energy-efficient electric heating, EPC ratings are still outdated and still tend to rank some forms of electric heating lower than others —even if the electric system is more sustainable and better suited to the property.

This creates a misleading picture, where some landlords could be encouraged to invest in the upgrades which aren’t the most suitable for the propert—either spending more than necessary or making changes that don’t align with the UK’s long-term sustainability goals.

If the government truly wants to help landlords improve energy efficiency, EPC reforms must address these inconsistencies and recognise the full potential of modern electric heating solutions.

What Should Landlords Do Next?

If you are a landlord, now is the time to start planning your energy efficiency upgrades, but it is essential to choose solutions that work for your property.

• Check your current EPC rating and identify areas for improvement.

• Explore alternatives to heat pumps if your property is not suited to them.

• Get expert advice on heating solutions that balance efficiency with cost-effectiveness.

Need Heating Advice?

If you are a landlord looking for an efficient heating upgrade ahead of the 2030 deadline, we are here to help.

Call us on 0800 5999 109 or email [email protected] for expert guidance on the best heating options for your property.

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