There is a topic of conversation cropping up more and more frequently within the lettings industry and on landlord forums right now.
It is a topic which, in the next few years, is almost certainly going to affect thousands of landlords across the country, and not least here in North London.
That topic is EPCs.
More specifically, it is the proposed requirement for privately rented homes to achieve a minimum EPC rating of C by 2030.
For some landlords, this will not be a huge issue. But for many others – particularly those with older properties – Victorian, Edwardian, early 20th century semis, the type you will often find across Edgware and Mill Hill – it could mean expensive upgrades if left too late.
But that in itself is a key point.
Because where things sit currently, this is not something landlords should necessarily panic about. It is, however, something landlords might be wise to start planning for now.
Why EPC requirements matter
The current government’s intended direction of travel is clear. By October 2030, unless something changes, privately rented properties in England and Wales are expected to need a minimum EPC rating of C.
The problem is that not only a large number, but the majority of rental homes currently fall short.
Research conducted by the leading data and insight provider TwentyEA suggests that more than half of PRS properties across the UK currently fall below a C rating.
Older homes are particularly affected, with properties built before the year 2000 far more likely to sit in the D or E bracket.
That probably won’t surprise anyone locally.
Much of North London’s rental stock is made up of older 20th century semi detached homes and 1960s and 70s estates. They were not built with modern energy efficiency standards in mind.
Why waiting could be an expensive mistake
Many landlords seem to be taking a “wait and see” approach.
That is, in some ways, understandable. There is still uncertainty around the finer details, costs, and exemptions.
But leaving everything until 2028 or 2029 could land you with a much bigger headache.
Why?
Because if millions of landlords all suddenly need:
- EPC assessments
- insulation upgrades
- new boilers or heat pumps
- glazing improvements
- ventilation works
- trusted contractors
…there is going to be enormous pressure on labour, materials, and availability. Not to mention good old-fashioned opportunism.
We already saw what happened during the post-pandemic building boom. Prices shot up, tradespeople became impossible to book, and projects took months longer than expected.
Landlords who act early are likely to save money, avoid stress and have more flexibility over the improvements they choose to make.
And remember – tenants are paying attention to this too.
For landlords that care about attracting the best tenants, it is worth remembering that this issue is not just about compliance alone.
Modern tenants, particularly younger millennials and Gen Z – likely to be followed by the next cohort coming through, the so-called ‘Generation Alpha’ – are far more energy-conscious, environmentally aware and ecologically astute.
Plus, after another winter of brutal utility bills, those in rented accommodation are increasingly asking questions about:
- heating efficiency
- insulation
- running costs
- damp and condensation
- more efficient double or even triple glazing
And, not least of course, EPC ratings.
A warmer, more efficient property is not simply good for the environment. It is usually easier to let, more comfortable to live in and often attracts longer-term tenants.
That matters in a competitive rental market.
What landlords can do now
The good news is, most landlords do not need to rip everything apart tomorrow.
In many cases, sensible phased improvements can make a significant difference over time.
The first step is simply understanding where your property currently stands.
That means:
- checking your existing EPC
- understanding what improvements are being recommended
- identifying which upgrades are realistic and cost-effective
- prioritising work over the next few years rather than all at once
Sometimes, relatively straightforward improvements can move a property up a band. In other cases – especially with older buildings – the path is more complicated.
Every property is different. And nobody can say for certain that exemptions may not eventually apply. For example, there is likely to be a cost cap exemption for landlords who can demonstrate they have spent up to a required amount on energy efficiency improvements without reaching EPC C. The government’s latest response indicates that this cap is set at £10,000, with exemptions valid for 10 years.
But, one way or another, given that a new minimum requirement of C is likely to be brought in, doing nothing at all is likely to catch you out in the long term.
What we’re doing at Petermans
This is exactly where a good letting agent should step in and help.
At Petermans, we don’t think landlords should be left trying to decode legislation, chase contractors or second-guess what’s coming next.
Our job is to help clients stay ahead of changes before they become problems.
Over the coming months and years, we will be working with landlords to:
- review EPC ratings across portfolios
- identify properties most likely to need attention
- recommend sensible upgrade pathways
- connect landlords with dependable local contractors
- help plan works around tenancies or actively work with tenants in place
- minimise disruption for tenants (work patterns, holidays, etc.)
- keep landlords informed as legislation evolves
And just as importantly, we will help tenants through the process too.
Upgrades are important for the landlord as the property owner, but we never forget that these properties are people’s homes.
Communication matters, planning and execution matter, but ultimately, respect matters perhaps above all else.
The landlords who prepare early will be in the strongest position
The last few years have not exactly been easy for landlords.
Higher mortgage costs, tax changes, and evolving legislation have pushed many of you to reconsider staying in the sector altogether.
But the landlords who do best long term are the ones who adapt early rather than react when time is short.
Energy efficiency is going to become a bigger part of the rental market over the next decade one way or another. The landlords who apply common sense and pragmatism, and who prepare sensibly ahead of time, are likely to protect both their properties and their future rental income.
That is exactly where experienced local letting agents should be adding real value.