The New Energy Efficiency Regulations And The Potential Cost To Landlords

The new energy efficiency regulations are being introduced in two phases. The first phase was introduced on 1st April 2016 and the second will be introduced on 1st April 2018.

The regulations introduce energy efficiency standards for landlords, but what are those minimum energy efficiency standards?

From 1 April 2018, private landlords will not be able to enter into new tenancies for either domestic or non-domestic properties that have not achieved at least an ‘E’ EPC rating. This requirement also applies to all tenancies that result from an extension or renewal of an existing tenancy.

It was previously understood that private landlords would be entitled to apply for loans from the government Green Deal scheme for gas and electric improvements, however this funding has now been withdrawn.

The new Department for Business, Energy and Industrial Strategy is proposing that landlords meet the cost of any energy efficiency improvements without grant funding. It is understood that they are suggesting landlords could simply ‘borrow more’ to cover the costs.

We advise that landlords start to review their property portfolio to identify properties that will require work to achieve an ‘E’ energy rating.

Landlords need to think about how they can achieve any necessary improvements where a tenancy is renewed.

Plan ahead and the cost of any works can be spread over a longer period of time so that all of your properties are EPC certified energy efficient homes ready for the introduction of the energy saving regulations in 2018.

On 28 October 2025 the long awaited Renters Rights Act 2025 (‘the Act’) received Royal Assent meaning it is now law. This includes very significant changes for landlords and tenants including changes to tenancy agreements, tenant rights, deposits, notices and eviction processes amongst others. For the current position on this see our blog here. This legislation includes numerous changes designed to alter the relationship between landlords and tenants, aimed at giving tenants greater security of tenure and rights. For now landlords can continue to use the existing processes and should serve notices and issue claims promptly wherever possible to take advantage of the time period before the Act is fully implemented. When the Act is fully implemented it will no longer be possible to pursue possession claims via the accelerated possession route as this will no longer exist. Section 21 notices are being abolished. Existing court forms will be changing. Landlords should ensure you remain up to date on the legislation to avoid later difficulties. Contact our team if you need assistance and we will be happy to help. AND The government has proposed plans, currently under consultation, to raise the minimum EPC rating to a Band C for all rented properties by 2030.