England and Wales landlords face £9.9bn energy efficiency costs

Private landlords in England and Wales are required to meet a higher minimum energy-efficiency standard of EPC C by 1 October 2030. Under current government policy, properties must achieve this rating or secure a valid exemption to remain compliant. While the current legal minimum is EPC E, the 2030 transition will place greater emphasis on building fabric, heating performance, and smart readiness.

Recent data indicates that 40.2% of homes assessed in England and Wales in the year to June 2026 were below the EPC C band. The government estimates the total cost for landlords to bring privately rented homes up to the required standard will be approximately £9.9 billion. The average expected cost per property is £5,387, with a planned cost cap of £10,000 per property, though an affordability adjustment may reduce this cap to 10% of the property’s value if that figure is lower.

Regional disparities are significant, with the East Midlands seeing 45.5% of assessed homes below band C, followed by the South West at 44.4%. Failure to comply with the new standards could result in penalties of up to £30,000 per property.