EPC 2030 update – What property owners and investors need to know

We recently held a session on the evolving Energy Performance Certificate (EPC) landscape and the implications of the UK’s Minimum Energy Efficiency Standards (MEES) for residential and commercial property owners. 

With regulatory requirements tightening and greater emphasis being placed on energy efficiency, it is now really important for landlords and investors to review the performance of their assets and develop a strategy for future compliance. 

Key points 

Residential Property – EPC C by 2030 
The Government has confirmed that from October 2030, privately rented residential properties in England and Wales will generally require a minimum EPC rating of C in order to continue to be let. 

This represents a significant shift from the current minimum standard of E, and is expected to impact a large proportion of the private rented sector. Current estimates suggest that approximately 61% of PRS properties are below EPC C and may require improvement works before the deadline. 

Typical measures to improve EPC ratings include: 

• Enhanced insulation 

• Replacement glazing 

• LED lighting upgrades 

• Low-carbon heating and hot water systems 

• Renewable energy technologies. 

While exemptions remain available in certain circumstances, they must be carefully evidenced and are time-limited to five years. 

Commercial Property – Future Direction Emerging 
Commercial properties currently require a minimum EPC rating of E to be let. 

The Government’s latest position has removed the previously proposed interim requirement for EPC C that was due to come into effect in 2027 (then pushed back to 2028). The interim response to consultation will require commercial properties larger than 1,000 sq m to achieve a minimum EPC B rating from 2031, where this is deemed cost-effective. 

For owners and landlords of smaller buildings the pressure is largely off, with the minimum E rating being retained, there is now no intention to make these reach a B rating.  

For landlords of larger buildings, the direction of travel is clear – energy performance will become an increasingly important consideration in asset management, leasing strategy and capital expenditure planning. 

Achieving an EPC B can be considerably more challenging than reaching a C and often requires more substantial investment, such as: 

• Replacement of fossil fuel-based plant 

• High-efficiency HVAC systems 

• Photovoltaic (PV) installations 

• Comprehensive building services upgrades. 

Compliance and risk 
Failure to comply with MEES regulations can result in, significant financial penalties, public disclosure of non-compliance and reputational risk. Importantly, responsibility for compliance sits with the landlord, regardless of tenant awareness. 

Why clients should act now 
Early review and planning can help landlords and investors: 

• Avoid stranded assets and future letting restrictions 

• Align capital expenditure with upcoming regulatory requirements 

• Reduce energy consumption and operating costs 

• Improve occupier comfort and building performance 

• Protect asset value and marketability. 

 How Cluttons can help 

Our building consultancy team supports clients through: 

• EPC assessments and reviews 

• Portfolio-wide compliance audits 

• Advising on possible exemptions 

• Asset and energy performance improvement strategies  

• Retrofit and refurbishment planning 

• Procurement of improvement works 

• Energy optimisation through data collection, performance monitoring and data insights. 

Recent projects have demonstrated that targeted energy efficiency upgrades can deliver substantial EPC improvements while forming part of wider asset enhancement strategies. 

If you would like to discuss the implications for your property or portfolio, or to arrange an EPC review of your assets, please get in touch.  

This note is intended as a general overview of current and proposed EPC and MEES requirements as of July 2026. Specific advice should be sought in relation to individual properties and portfolios.