There is good reason why the Energy Performance Certificate (EPC) reform continues to emerge in conversations with landlords.
The original 2025/2028 plan may have stopped, but the February consultation brings a series of new dates. From April 1, 2028, landlords must receive an EPC rating for the new private lease and all leases from April 1, 2030.
The proposed spending cap is £15,000 per property, which is likely to be lower and lower, but the EPC regulations have now firmly restored the landlord’s agenda.
There is still a lack of certainty. Landlords can choose not to cash before EPC and MEE (minimum energy efficiency standards) consultation, but this leaves a narrow window between the 2026 confirmation and the 2028 deadline.
Demand for heat pumps and scaffolding panels may spike
The actual cost is also a problem. The £15,000 hat looks generous until you multiply it by 10 or 25 attributes. Many portfolio clients will need additional borrowing rather than savings to cover these works.
They do have a choice. Purchasing lenders such as mortgage engineering are already rewarding A-to-C stocks with higher LTV and lower interest rates. Green is making further progress and is introducing cash backs for remodeling and product transfer incentives, which we hope will increase once the regulations are confirmed.
Grants can further expand the budget, so consultants can remind customers to view these options when available. For example, ECO4 runs until March 2026 and can cover a large number of fabric insulation or heating upgrades for low-income tenants.
Consultants should refresh their understanding of available green products
Most importantly, in partnership with the Green Finance Institute, the government is looking at financings with property chains that will repay loans, not borrowers, but borrowers, potentially reducing the risk premium for lenders and the landlord’s interest costs. Please pay close attention to this inquiry!
Win quickly
A quick win is to make sure the landlords know their property. Too many landlords have old EPCs that may not reflect recent changes.
The consultant should encourage new assessments, as the client may be closer to C than they think. EPC will provide guidance on the types of jobs that can be considered, while free portals like ProPFLO can help further.
Help landlords consider grants and additional funding needs
Some landlords may think the improvement is not worth the hassle and will quit. However, some property owners are investing tired inventory in the market and reinvesting fresh properties with a C or higher rating.
Other professional landlords are buying and planning long-term investments and are happy to spend £15,000 today to earn long-term gains from improving rental income and capital appreciation. Advisors who can explain the transformation path and acquisition opportunities will add value to their clients.
Punishment
The UK housing survey shows that once higher standards come into effect, the proposed fine still belongs to more than 2.5 million private homes from EPC band D to G, with the proposed fine as high as £30,000.
Too many landlords have old EPCs that may not reflect recent changes
It has been suggested that only the cost of work done after the regulation is in effect can be included in the expenditure ceiling, so full certainty in the regulation sounds wise. But once the rules are locked, demand for installers, heat pumps and even scaffolding panels may soar. Start planning preparations, locking in prices may be cautious and may reduce the risk of landlords becoming mortgage prisoners when rolling in 2028.
In the next portfolio review, the consultants should ensure that they collect current EPC ratings and accounts at a conceptual amount of £10,000 per Sub-C property. Help landlords consider grants and additional funding needs. Link them to tools like PropFlo to draw the work.
Many portfolio clients will need additional borrowing instead of savings to cover the work
Consultants should also refresh their knowledge of available green products to provide cashback returns and bring discounts to the completion of the work. At the time of writing, experts and mainstream have about 17 purchases of nearly 350 products from lenders, offering some form of green incentives. Tools such as Twenty7tec can help identify these lenders.
Advisors can add value by helping clients with energy improvements as part of their standard real estate management rather than last minute compliance costs to attract better tenants, increase property value and enjoy keen mortgage pricing.
Liz Syms is CEO of Intermediary Connections
This article is in the June 2025 edition Mortgage Strategy.
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