Government Announce New EPC Changes From 2030

Government Fast-Tracks Plan for Change: Warmer Homes & Lower Energy Bills

Published: 7 February 2025
From: Department for Energy Security and Net Zero, Ministry of Housing, Communities and Local Government, The Rt Hon Ed Miliband MP, and The Rt Hon Angela Rayner MP

Millions to Benefit from Energy Efficiency Improvements

Households across the UK are set to enjoy warmer homes and reduced energy bills as the government accelerates its Plan for Change, aiming to enhance living conditions in the private rental sector.

Key Highlights:

• Up to 500,000 households could be lifted out of fuel poverty by 2030.

• Tenants in energy-inefficient homes could save hundreds of pounds annually.

• Landlords required to upgrade properties to higher energy performance standards.

Due to an overreliance on international gas markets, families have faced soaring energy costs while many tenants continue to endure cold, inefficient homes, further driving up expenses. To address this, the government is implementing bold new measures to ensure private renters save an average of £240 per year on energy bills. By 2030, all private rental properties in England and Wales must meet a minimum Energy Performance Certificate (EPC) rating of C, an improvement from the current EPC E standard.

Currently, 48% of private rental homes in England already meet or exceed this standard. The new policy aims to expand this progress across the sector, ensuring all landlords meet higher energy efficiency requirements, preventing unfair competition, and protecting tenants.

Raising Housing Standards for a Better Future

By mandating upgrades such as loft insulation, cavity wall insulation, and double glazing, the Plan for Change will create more energy-efficient, comfortable, and affordable homes for renters.

Government Leadership

Deputy Prime Minister and Housing Secretary Angela Rayner stated:
“For too long, tenants have suffered from substandard housing conditions. Through our Plan for Change, we are taking decisive action to improve living standards, cut energy costs, and ensure all families can enjoy safe, warm homes.”

Energy Secretary Ed Miliband added:
“For years, tenants have been left behind as energy efficiency opportunities were overlooked. These new policies will not only lower energy bills by an estimated £240 annually but also compel landlords to invest in their properties, enhancing living conditions across the rental sector.”

Seeking Public Input

The government is now consulting with tenants and landlords on proposals to improve energy efficiency in rental homes, including:

• Providing landlords with flexibility on compliance, allowing investments in insulation, solar panels, and smart meters.

• Capping landlords’ upgrade costs at £15,000 per property, with financial assistance available through the Boiler Upgrade Scheme and Warm Homes: Local Grant.

• Introducing an affordability exemption for landlords with lower-rent properties, reducing the cost cap to £10,000.

• Ensuring compliance by 2030, extending the initial deadline by two years to ease transition.

Additionally, a revised fuel poverty strategy is being developed to enhance home energy efficiency, support low-income households, and provide protection against high energy prices.

Further Government Initiatives

The Plan for Change aligns with broader efforts to reduce living costs and promote energy efficiency, including:

• Strengthening Ofgem’s consumer protection role.

• Upgrading 300,000 homes through the Warm Homes Plan.

• Advancing clean energy through the Clean Power Action Plan.

Industry & Expert Reactions

Caroline Flint, Chair of the Committee on Fuel Poverty:
“The private rental sector has long been a weak point in tackling fuel poverty. These reforms are essential to improving living conditions and ensuring landlords fulfill their responsibilities.”

Adam Scorer, CEO of National Energy Action:
“Stronger energy efficiency standards for landlords are necessary to combat fuel poverty and protect vulnerable tenants from unmanageable energy costs.”

Charles Wood, Deputy Director at Energy UK:
“With some of the least energy-efficient housing in Europe, the UK must prioritize energy-saving measures to lower bills and create healthier homes.”

Ben Twomey, CEO of Generation Rent:
“One in four private renters lives in fuel poverty. This initiative is crucial to ensuring tenants can afford to heat their homes and avoid the health risks of cold, damp living conditions.”

Stew Horne, Head of Policy at Energy Saving Trust:
“Improving energy efficiency in private rental properties is key to ensuring a just transition to a low-carbon future while lowering costs for tenants.”

Next Steps

The government invites landlords and tenants to provide feedback on the proposals. The average cost for landlords to comply with these upgrades is estimated at £6,100–£6,800 per property by 2030, with financial support available to assist with necessary improvements.

Through these measures, the UK government is reinforcing its commitment to reducing fuel poverty, lowering energy bills, and creating a more sustainable housing market for all.

If you are unsure what your current EPC rating is or would like to speak to one of our team about the potential implications or for any general advice, please contact us via our website (www.ilesandjenkin.com) or by phone - 01934 512537