Worked example
Sam lets a terraced house in England worth £180,000. Its EPC, issued in March 2022, rates it D with a score of 60. In January 2026 Sam spent £1,200 topping up the loft insulation, and has a £4,800 quote for cavity wall insulation and new heating controls.
| Item | Amount |
|---|---|
| Points needed: 69 (start of band C) − 60 | 9 points |
| Cost cap (house worth over £100,000) | £10,000 |
| Less spent since 1 October 2025 | −£1,200 |
| Left under the cap | £8,800 |
| Planned works | £4,800 |
The planned work fits within the £8,800 left, so a cost cap exemption would not apply: Sam needs to do the work and get a new EPC before 1 October 2030. If the same house were worth £80,000, the cap would be £8,000 (10% of the value), leaving £6,800.
How it works, in plain English
The new standard
Today a rented home needs at least an E. On 21 January 2026 the government confirmed that every private tenancy in England and Wales must meet the higher standard — equivalent to EPC C — by 1 October 2030. There is no earlier date for new tenancies. It still needs regulations, expected in 2027, so check GOV.UK for changes.
Two new measures, not just a letter
New-style EPCs will judge homes on fabric performance first (insulation, windows, draughts), then either the heating system or smart readiness — the landlord chooses which. That is why insulation usually comes first.
Already rated C?
An Energy Efficiency Rating of C or above on an EPC lodged before 1 October 2029 counts as compliant until that EPC expires or is replaced. EPCs last 10 years, so the issue date matters.
The cost cap
You are expected to spend up to £10,000 per property over 10 years — or 10% of the value if the home is worth under £100,000. Qualifying spending from 1 October 2025 counts, along with grants (not the Boiler Upgrade Scheme) and reasonable EPC fees. If you reach the cap without getting to C, you can register a cost cap exemption for 10 years.
Fines
Councils will be able to fine up to £30,000 per property per breach. Homes rated F or G already cannot be let without an exemption.
Frequently asked questions
When do rented homes need to reach EPC C?
By 1 October 2030 for every private tenancy in England and Wales — new and existing. The government confirmed there will be no earlier date for new tenancies. The regulations are expected in 2027, so details could still change.
How much will I have to spend?
Up to £10,000 per property over 10 years. If the home is worth less than £100,000, the cap is 10% of its value instead. Qualifying work since 1 October 2025 counts, as do grants (except the Boiler Upgrade Scheme) and reasonable EPC costs.
My property is already rated C. Do I need to do anything?
If your EPC shows an Energy Efficiency Rating of C or above and was lodged before 1 October 2029, it counts as compliant until that certificate expires or is replaced. After that, the new metrics apply.
What exemptions will there be?
High cost, all relevant improvements made, cost cap (10 years), property value adjustment (10 years), solid wall insulation, negative impacts (10 years), third-party consent, and a 6-month new landlord exemption. Most others last 5 years.
What are the penalties?
Under the new rules, councils will be able to fine up to £30,000 per property per breach. Giving false or misleading exemption information can also be fined.
Does it apply to holiday lets or homes in Scotland?
Not for now. Short-term and holiday lets are excluded (under review), and Scotland and Northern Ireland have their own rules. Social housing has a separate standard.
Estimates only, not tax advice or legal advice. This is a planning tool based on the government's published policy, which still needs regulations. Your own position can differ — check GOV.UK or an accredited energy assessor before you act.
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