Landlord Energy Upgrades: What's Required, What's Funded, and Where to Start

If you're a landlord, energy efficiency isn't optional anymore. Minimum Energy Efficiency Standards (MEES) already require an E rating for rental properties, and the government has confirmed plans to raise this to C by 2028 for new tenancies. Here's what you need to know and do.

Current requirements

Since April 2020, you cannot let a property with an EPC rating below E (with limited exemptions). Fines for non-compliance are up to £5,000 per property. This applies to new tenancies and renewals - not just new lets.

What's coming

The proposed changes (expected to become law in 2027):

• 2028: All new tenancies must have EPC C or above
• 2030: All existing tenancies must have EPC C or above


• Spending cap: Expected to be £10,000 per property (landlord contribution)

If your properties are currently D or below, you need to act now. The closer to the deadline, the harder it'll be to find installers and the higher prices will be.

Most cost-effective upgrades for landlords

In order of cost-effectiveness:

1. Loft insulation top-up (£300-500, often 1-2 band improvement)
2. Cavity wall insulation (£500-1,500, 1-2 bands)


3. LED lighting throughout (£50-100, minor but helps)


4. Smart thermostat (£150-250, see our guide)


5. Double glazing (£3,000-7,000, 1 band)


6. Solar panels (£5,500-7,500, 1-2 bands, also generates rental income via SEG)


7. Heat pump (£2,500-7,500 after BUS grant, 1-3 bands)

For most D-rated properties, loft insulation + cavity walls + LED lighting is enough to reach C. That's typically under £2,000 total.

Available funding

Boiler Upgrade Scheme: Landlords can claim the £7,500 BUS grant for heat pumps. Tenant agreement is needed.

ECO4: If your tenants are on certain benefits, the Energy Company Obligation scheme can fund insulation and heating upgrades at no cost to you or the tenant.

Local authority grants: Many councils offer landlord-specific grants. Check your local authority website.

0% VAT on solar and insulation: The zero VAT rate applies to landlord properties too, saving 20% on these upgrades.

Portfolio management

If you manage multiple properties, our landlord portal helps you track EPC ratings across your portfolio, identify which properties need work, and request bulk quotes from installers. It's designed for exactly this situation.

The business case

Beyond compliance, energy-efficient properties:

• Command higher rents (£25-50/month premium for A-C rated homes)
• Attract better tenants who stay longer


• Have fewer maintenance issues (better insulated = less damp and mould)


• Are easier to mortgage (green mortgage rates are lower)

The investment pays back through higher yields even before you factor in avoiding fines. For a detailed EPC explainer, see our piece on why your EPC matters.