Energy performance and green upgrade changes: What landlords need to know

Published 8 Jan 2026

Table of contents

• What is energy performance for a rental property?
• Who needs to comply with EPC and MEES rules?
• Current changes for landlords in the UK
• How to plan and fund green upgrades
• Which upgrades lift EPC ratings the fastest?
• Get set for green upgrades with Xero
• FAQs on energy performance for landlords

Key takeaways

• From 2030, private landlords will need to have an energy performance certificate (EPC) rating of C for rental properties. The current minimum EPC rating is E.
• Funding is available for private landlords making energy efficiency upgrades to meet the new EPC requirements. This includes the Warm Homes: Local Grant, ECO, and the Boiler Upgrade Scheme.
• Landlords should start making plans for upgrades now. You should start auditing properties for the most pressing issues, securing funding, setting a budget, and finding tradespeople to carry out the work.

What is energy performance for a rental property?

A building’s energy performance tells you how efficient it is – for example, how much it might cost to heat or cool and how well it retains its temperature. It’s an important factor for people deciding whether to buy or live in a house, and for companies that want to reduce business energy costs.

In the UK, you need an energy performance certificate (EPC) if you’re selling, building, or renting a property. The EPC contains information about the property’s energy use and costs, and recommendations for improvements that would boost energy efficiency and save money.

The government has announced that from 2030, all private landlords need to meet a minimum energy efficiency standard (MEES) EPC rating of C for their privately rented properties. This is up from the current minimum rating, E.

This shouldn’t make much difference to many landlords – 48% of private rented homes already meet the C rating requirement. But if you need to upgrade a property, it could mean big bills ahead of the deadline.

Who needs to comply with EPC and MEES rules?

If you rent out or sell premises, either domestic or non-domestic property rentals, you need an EPC for the property.

• If you’re renting a residential property to tenants, you’re likely subject to the domestic minimum energy efficiency standards (MEES).
• If a property you let is an assured, regulated, or domestic agricultural tenancy – and therefore legally required to have an EPC.

The UK government is also adding criteria to the EPC system, so what constitutes a certain grade will probably change in the coming years.

Current changes for landlords in the UK

Under the government’s Warm Homes plan, there are three key changes that will affect landlords in the UK.

• By 2030, private landlords will need to hold the EPC grade C for rental properties.

• The UK government is adding metrics to the EPC system, including energy cost and performance, fabric performance, carbon, and capacity to integrate smart technologies. Any changes to EPC metrics will likely be introduced later in 2026.

• The government proposes that private landlords who need to upgrade their properties to meet the new energy standards, need to spend only up to £15,000 per property on improvements. Following this, landlords can register for a 10-year exemption and continue letting the property, even if it doesn’t meet the required standards.

How to plan and fund green upgrades

Upgrades take time, so get started on your energy efficiency upgrades early. Here are the basic steps to take.

• Start by auditing the property for weaknesses and inefficiencies. You could hire someone who specialises in energy to help you.
• Perform a utility bill analysis and review expense reports to see where your biggest costs lie.
• Once you have a list of potential improvements, consider the updated EPC metrics – things like energy cost and performance, fabric performance, and carbon will all contribute to the rating.
• Prioritise improvements that address these weaknesses you found. Insulation, double-glazing, and renewable energy technologies like heat pumps will all improve your building’s energy efficiency.

Funding available for your upgrades

Green business grants for UK landlords and businesses might cover some of your upgrade costs. Here are some examples.

• The government’s Warm Homes: Local Grant is available to landlords with tenants on low incomes, receiving certain benefits, or based in certain postcodes. Provided your local council has funding available, they’ll arrange a home survey, identify improvements your building needs, and fund the work. You may need to pay part of the cost.

• The government’s Boiler Upgrade Scheme provides funding to upgrade a property’s boiler system if you meet certain criteria. To be eligible, you need to privately own the property and be replacing fossil fuel heating systems. You can find out more about the Boiler Upgrade Scheme on the Gov.uk website.

There is a cap of £15,000 per property. If you invest this much and your property still doesn’t reach the ‘C’EPC grade, you can apply for a 10-year exemption.

Which upgrades lift EPC ratings the fastest?

Your existing EPC rating should give you some idea of what energy-saving measures to take, and ways to raise your building’s energy efficiency. Upgrades that usually help your EPC ratings are:

• Window double-glazing and insulation
• Insulating walls and loft space
• Boiler upgrades
• LED bulbs
• Solar panels
• Heat pumps – but check whether a heat pump is suitable for your property first

If you’re looking for an energy efficiency upgrade that makes a big impact, insulate as much of the property as possible. This is often recommended, including by the energy saving trust.

Get set for green upgrades with Xero

Running an efficient property is much easier when you understand the numbers. Xero accounting software’s intelligent reporting features use live financial data to give you a clear picture of your property expenses. Use the data to apply for green grants and finance, so you and your building can get closer to sustainability targets.

You can also make accurate forecasts and projections to know when you can afford to make the next green investments.

Try Xero for free today to get started.

FAQs on energy performance for landlords

Here are common questions from landlords about their rental properties’ energy performance.

How long does an EPC last?

An EPC rating is valid for 10 years. Make sure you get one if it’s required for your property, or you could be fined.

Do listed buildings need an EPC?

Maybe. If the changes required for a listed building would unacceptably alter it – for instance, change its character or appearance significantly – then you don’t need an EPC. The UK government website offers specific guidance on EPCs for listed buildings.

Is an energy audit different from an EPC?

Yes. A commercial energy audit can help you identify which changes might be needed to improve the building’s efficiency. Only an accredited assessor can award a building an energy performance certificate (EPC) and give it a specific lettered ranking based on how it performs.

Which records do I need when applying for grants and finance?

It depends on what you’re applying for. Typically, you’ll need to provide some proof of property ownership and an existing EPC rating. For the Warm Homes: Local Grant, you need to sign a landlord declaration confirming a) how much financial assistance you’ve received previously; b) basic data for monitoring the impact of the scheme, and c) you agree that rents won’t be increased as a result of the improvements.

Can I increase rent after upgrades?

No, not if you’re using the Warm Homes: Local Grant. If you make your own improvements without funding, it’s up to you whether you increase rent.

What tax relief can I claim on upgrades?

You may be able to claim capital allowances for energy efficiency equipment and low- or no-carbon technologies you buy. Otherwise, general repair and maintenance costs, and some upgrades – like installing a more efficient boiler – count as allowable expenses and are already tax deductible.

How do I choose a trustworthy installer?

You find a good installer the same way you’ve found reliable contractors before. Get recommendations from your network, check out online reviews and ratings for tradespeople, and look for someone who specialises in the type of work you need. Certain technologies and installers can have certifications attached. For example, the MCS certification is a good mark of quality for installers of small-scale energy technologies.