Landlords Face £15,000 EPC Upgrade Bill as Government Confirms 2030 Deadline

Millions of rental homes must meet stricter energy efficiency rules – and tenants could feel the impact.

Landlords are being warned of hefty costs after the government confirmed that all rental properties must achieve an Energy Performance Certificate (EPC) rating of C by 2030.¹

The policy, which aims to improve living standards and cut energy bills, will see millions of landlords forced to upgrade their properties – or face financial penalties. However, with an estimated 2.9 million rental homes still below the required standard, concerns are growing over who will foot the bill.²

£15,000 Price Tag for Landlords

To comply with the new regulations, landlords will need to install better insulation, double glazing, and energy-efficient heating systems. The government has now raised the cost cap from £10,000 to £15,000 per home, meaning rental property owners will have to spend significantly more than originally expected.²

Although grants such as the Boiler Upgrade Scheme offer some assistance, these cover only a fraction of the total investment required. According to Rightmove, the cost of bringing all rental properties up to standard is estimated at £23.4 billion, while the government has pledged just £6.6 billion in funding.²

Rents Could Rise as Landlords Weigh Their Options

With half of landlords expressing concerns over possible fines for non-compliance, many may sell off properties rather than pay for costly upgrades². Others could pass the costs onto tenants by raising rents, further adding to the pressure on an already stretched rental market.

Calls for Greater Support

Experts have warned that without further financial incentives, landlords and tenants alike will struggle to meet the new requirements. Rightmove’s Green Homes Report has suggested several possible solutions, including:

Stamp duty rebates for buyers committing to energy-efficient improvements
Allowing landlords to offset EPC upgrade costs against income tax instead of capital gains tax
Increased grants and low-interest loans to help cover the cost of improvements
Encouraging lenders to offer better ‘green mortgage’ products

With just five years until the deadline, landlords must start planning now to avoid fines or forced sales. However, unless the government steps up its support, millions of tenants could end up paying the price through higher rents and reduced availability of rental properties.

Sources

Gov.uk (2025) Warm homes and cheaper bills as government accelerates Plan for Change. Available at: https://www.gov.uk/government/news/warm-homes-and-cheaper-bills-as-government-accelerates-plan-for-change [Accessed 20^th Feb 2025].

Rightmove (2025) Government confirms EPC rating C required for rental homes by 2030. Available at: https://www.rightmove.co.uk/news/articles/property-news/epc-targets-for-rental-homes-cost-greener-homes-report/ [Accessed 20^th Feb 2025].

All the information in this article is correct as of the publish date 27^th February 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.