EPC Reforms 2026: Government Update on Band C Deadline and New Exemptions

The government has issued updated guidance on the planned EPC Band C minimum standard for rental properties in England. While the 2030 target remains in place, the updated position introduces a revised cost cap, new categories of exemption, and a clearer pathway for landlords who cannot reasonably achieve Band C.

What Has Been Confirmed

The government has reaffirmed that all rental properties in England must achieve a minimum EPC rating of Band C:

- New tenancies: from April 2030

- All existing tenancies: from April 2031

These dates have not changed. What has changed is the detail around exemptions and the cost cap.

The Revised Cost Cap

The previous consultation proposed a £10,000 cost cap — meaning landlords would only be required to spend up to £10,000 before being able to register an exemption. The updated government position raises this to £15,000 per property.

This means:

- If you have spent £15,000 on qualifying improvements and still cannot reach Band C, you can register a cost cap exemption

- The exemption must be registered on the PRS Exemptions Register

- Evidence of costs and works must be retained

- The exemption lasts for 5 years, after which you must reassess

New and Clarified Exemptions

The updated guidance clarifies the following exemption categories:

1. Cost Cap Exemption

Where the cost of reaching Band C would exceed £15,000, landlords may register an exemption after spending up to that amount on qualifying improvements.

2. Wall Insulation Exemption

Where solid wall, cavity wall, or external wall insulation is not technically feasible or would damage the property's structure or character, an exemption may be registered. This is particularly relevant for:

- Listed buildings

- Properties in conservation areas

- Properties with non-standard construction (e.g. timber frame, solid stone)

3. Third-Party Consent Exemption

Where works require consent from a third party (freeholder, local authority, mortgage lender) and that consent has been refused or not granted within a reasonable period.

4. Devaluation Exemption

Where an independent RICS surveyor confirms that the required works would reduce the market value of the property by more than 5%.

5. New Landlord Exemption

A 6-month temporary exemption for landlords who have recently acquired a property that does not meet the standard, giving time to plan and carry out works.

What Counts as a Qualifying Improvement?

The government has published an updated list of qualifying energy efficiency improvements. These include:

- Loft, floor, and wall insulation

- Double or triple glazing

- Draught proofing

- Heating controls and thermostats

- Hot water cylinder insulation

- Solar panels (PV)

- Air source or ground source heat pumps

- Smart meters (where they contribute to the EPC score)

Works must be carried out by a qualified installer and evidenced with invoices and certificates.

What Landlords Should Do Now

The 2030 deadline may feel distant, but properties requiring significant works — particularly those currently at Band E or F — need to start planning now. Costs for contractors and materials are rising, and demand for energy efficiency works is expected to increase significantly as the deadline approaches.

Practical steps:

1. Get an up-to-date EPC — if your EPC is more than 2 years old, commission a new one. The assessor's recommendations will guide your improvement plan.

2. Obtain quotes now — get at least two quotes for the recommended works. Lock in prices where possible.

3. Check grant availability — the Boiler Upgrade Scheme and ECO4 scheme may fund some or all of the required works for eligible properties and tenants.

4. Register exemptions early — if you believe an exemption applies, gather evidence and register it on the PRS Exemptions Register before the deadline, not after.

5. Review your portfolio — if you have multiple properties, prioritise those furthest from Band C and those with the highest tenant energy costs.

Penalties for Non-Compliance

Local authorities will be responsible for enforcement. Penalties for letting a property that does not meet the minimum standard (without a valid exemption) are:

- Up to £30,000 per property

- Publication of the landlord's details on a public register

- Potential impact on ability to serve valid Section 8 notices

Key Takeaway

The Band C deadline is confirmed. The revised cost cap of £15,000 and the updated exemption framework give landlords more clarity on what is expected. Start planning now — do not wait until 2029.