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Is Your Property About to Become Illegal? Major EPC Update Incoming

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A significant update to Energy Performance Certificate (EPC) regulations is set to take effect from 15 June 2025, marking one of the most substantial changes to energy efficiency standards in recent years. The overhaul aims to improve the energy performance of residential and commercial buildings across England and Wales, as part of the government’s broader commitment to net zero by 2050.

Starting from 15 June 2025, new EPC assessments will require a more detailed evaluation of a property’s fabric, heating systems, insulation, and renewable energy capabilities. The revised methodology will focus more heavily on actual energy usage and carbon emissions rather than theoretical performance, giving prospective buyers and tenants a clearer picture of a property’s energy efficiency in practice.

Some of the most notable changes include a new rating scale, with the traditional A-G rating system remaining in place but thresholds for each band shifting to reflect more stringent assessment criteria. There will be greater emphasis on carbon emissions, with assessments now placing more weight on the carbon output of heating systems, and fossil fuel-based systems are expected to receive lower ratings. All EPC reports will now include a legally required section outlining cost-effective ways to improve the property’s rating.

Landlords will face stricter compliance rules, as all newly let properties must achieve a minimum EPC rating of C, up from the previous requirement of E, by the implementation date. Property owners, particularly landlords, are urged to take action now to avoid penalties and disruption. Those with properties currently rated D or below are being encouraged to invest in energy upgrades such as insulation, efficient glazing, and low-carbon heating systems.

Lettings agents and estate agencies are also adjusting their practices, with many offering EPC improvement consultations as part of their services. Failure to meet the new requirements could result in fines of up to £30,000, along with potential restrictions on marketing or letting affected properties.

The property industry has met the changes with a mix of support and concern. Environmental groups have welcomed the move, saying it provides a necessary push toward decarbonising the UK’s housing stock. However, some industry bodies have warned about the financial pressure it may place on smaller landlords and older housing stock.

Commenting on the changes, a spokesperson for the Department for Energy Security and Net Zero said:
“This overhaul is about making our homes and buildings fit for the future. By improving the energy performance of the UK’s property market, we’re helping to cut emissions, reduce energy bills, and ensure a sustainable housing sector.”

As the deadline approaches, homeowners and landlords are encouraged to review their current EPC rating and report, seek professional advice on energy-saving improvements, and schedule upgrades ahead of the peak demand expected later this year. The updated EPC framework is part of a wider package of reforms designed to support the UK’s transition to a greener economy. With just days left until implementation, the pressure is on to act and prepare for a more energy-efficient future.