EPC C by 2030: The New Roadmap
Following the government’s Warm Homes Plan announcement in January, landlords, lenders, and agents now have a clearer map towards the 2030 energy efficiency targets.
In our recent webinar, Luke Loveridge (EcoApproach), Matt McCullough (Aldermore), and Bobby Butler-Ellis (EcoApproach) sat down to discuss what’s confirmed and what’s changing.
1. The Headline: October 1st, 2030
The biggest update is the confirmation of a single, firm deadline. The interim 2028 target for new tenancies has been scrapped. Now, all private rental properties—both new and existing tenancies—must be compliant by October 1, 2030. Short-term lets and temporary accommodation are currently excluded from these specific requirements.
2. The “Dual Metric” Revolution
We’re moving away from a single EPC score toward a dual-metric standard. This is a “fabric-first” approach designed to ensure homes are actually warmer, not just cheaper to run on paper.
- Metric One (Fabric): You must first address insulation (lofts, cavity walls, windows).
- Metric Two (Heating/Smart Tech): Once the fabric is addressed, landlords can choose to upgrade the heating system (like heat pumps) OR opt for “Smart Readiness” (solar PV, battery storage, smart thermostats).
“There’s no more putting heat pumps in tents. We have to fix the windows, lofts, and walls first.” — Bobby Butler-Ellis
3. The £10,000 Spend Cap & Retroactive Credit
The financial parameters are now much clearer:
- The Cap: The maximum spend per property is £10,000. If you reach this limit and the property still isn’t a “C,” you can register an exemption.
- The 10% Rule: If a property is worth less than £100,000, the cap is limited to 10% of the property value (e.g., a £90k house has a £9k cap).
Any money spent on energy improvements from October 1, 2025, onwards will count toward your cap.
4. The “Grandfathering” Rule: A Strategic Loophole?
The panel highlighted a vital strategy for landlords with “high D” rated properties. If you can secure a Band C under the current system before October 1, 2029, that certificate will be deemed compliant for its full 10-year life.
With the new Home Energy Model (HEM) arriving in 2026—which is expected to be more granular and potentially stricter—securing a “C” now under the old rules could save you from more complex requirements later.
5. Why Acting Now Trumps Waiting
While 2030 feels far away, the panel identified four major risks to waiting:
- Supply Chain Bottlenecks: To hit the target, roughly 1,400 rental properties per day need to be upgraded between now and 2030. Waiting until 2029 will mean higher labor costs and zero contractor availability.
- The VAT Cliff: The 0% VAT on many energy-saving materials is set to expire in March 2027. Doing the work now is instantly 5%–20% cheaper.
- Lending Advantage: Lenders like Aldermore are already looking at “Better Processes for Better Property.” High-quality, compliant stock may soon benefit from better borrowing capacity and “fairer” products.
- The Penalty: Fines for non-compliance are expected to reach up to £30,000 per property.
In summary
The “finish line” is October 2030, but the race has already started. As Matt McCullough noted, this transition represents a £13.5 billion injection into the economy. Landlords who view this as a strategic property upgrade—rather than a regulatory burden—will be the ones who protect their yields and their portfolios in the long run.
You can watch the full webinar below. If you have any questions or would like to discuss your property portfolio with us, please get in touch.
