Buy-to-Let Watch Episode 13: Helping landlords prepare for EPC reform

Buy-to-Let Watch Episode 13: Helping landlords prepare for EPC reform

• June 24, 2025

EPC compliance remains a key priority for landlords as government proposals continue to evolve. While timelines have been subject to change, the February 2025 consultation renewed momentum, with recommendations indicating that rental properties may need to reach EPC Band C by April 2028 for new tenancies and April 2030 for all tenancies.

For many landlords, the practical challenge is not just the target band—it’s the scale and timing of upgrades, especially where properties are spread across a portfolio.

The £15,000 upgrade cap and why it matters

A proposed £15,000 cap per property has added another layer of complexity. For landlords with one or two homes, the figure may be easier to plan around. For portfolio landlords, however, cumulative costs can quickly become significant.

Even with uncertainty in the detail, the direction of travel is clear: energy-efficiency planning is becoming part of mainstream buy-to-let decision-making.

Financial pressures on portfolio landlords

When landlords are managing multiple units, EPC reform can create a “front-loaded” investment period. That often leads to a wider conversation about borrowing strategy—such as refinancing, consolidating debt, or exploring specialist options that may support energy-efficiency improvements.

Green EPC incentives (what to look for)

Across the market, some lenders and product providers may offer green buy-to-let incentives where properties meet certain energy-efficiency standards. These incentives can vary by lender and product, but may include features such as:

• higher loan-to-value options for more energy-efficient properties
• discounted fixed rates for qualifying cases
• cashback or other support linked to energy-efficiency renovations
• additional borrowing options to fund improvements
• enhanced product transfer options for existing customers

Important: the availability and exact terms of incentives depend on the lender, the property, and the product. EPC performance can therefore influence the funding options that may be available.

Grants and alternative funding options

While mortgage finance remains central for many landlords, it’s also worth considering whether non-mortgage support can reduce the overall upgrade burden.

ECO4 and eligible improvements

One example is ECO4, which supports insulation and heating improvements for homes with eligible low-income tenants. Where eligibility applies, grants can help reduce the amount that needs to be financed through borrowing.

Property-linked finance (under discussion)

There is also ongoing discussion around property-linked finance—a concept that would attach borrowing to the property rather than the individual borrower. If this develops further, it could change how landlords fund larger upgrades, particularly where affordability is tight or where portfolio structures are complex.

Encouraging accurate and up-to-date EPCs

A common planning issue is relying on an EPC that no longer reflects the property’s current condition. For example, improvements may have been made since the assessment, but the EPC may not have been updated.

Ordering a fresh EPC assessment can help landlords and advisers understand where the property stands today and what the most cost-effective upgrade pathway may be.

This matters because energy-efficiency planning is easier when it’s based on current data, not assumptions.

Integrating EPC planning into portfolio reviews

EPC reform is not a one-off task. It’s increasingly something that should be built into ongoing portfolio management.

A practical approach is to treat EPC planning as part of every portfolio review by:

• identifying properties below the target band
• assessing likely upgrade routes and sequencing
• budgeting for improvements across units
• reviewing whether incentives, further borrowing options, or product features could support the plan

For many landlords, the goal is to avoid last-minute decisions—because the later upgrades are delayed, the more likely it is that costs rise and options narrow.

The bigger market picture

The pressure to act is backed by wider housing data. In England, a substantial share of private rented homes sits below higher EPC bands, and proposed penalties for non-compliance have been discussed as a deterrent.

Market behaviour is already reflecting this:

• some landlords are exiting lower-rated stock
• others are buying or upgrading to protect long-term rental viability
• investors are increasingly prioritising energy-efficient assets

From a landlord perspective, energy efficiency is increasingly viewed as more than compliance—it can influence rental demand, property desirability and long-term financing prospects.

What this means for landlords

EPC reform is moving from “future risk” to “current planning”. While details may continue to develop, the most consistent message is that landlords who prepare early are better placed to:

• understand their current EPC position
• plan upgrades in a realistic sequence
• explore finance and support options that align with energy-efficiency improvements
• protect portfolio value and rental sustainability

Buy-to-let finance may respond to green incentives, and energy-efficiency upgrades are increasingly part of portfolio strategy. Episode 13 highlights why early preparation—paired with accurate EPC information and thoughtful funding planning—can make a meaningful difference.