In recent years, few sectors have seen more political U-turns and shifting priorities than the private rental market – and the regulation of Energy Performance Certificates (EPCs) has been no exception.
Under the previous Conservative government, plans were in place for all rental properties to achieve an EPC rating of C or above by 2028. However, this target was scrapped in 2023 by Rishi Sunak’s administration. When Labour took office last year, they reintroduced the proposals, this time with a revised deadline of 2030.
Given the political back and forth, there is still some confusion around what the government’s latest policy position actually is, and what it will mean for brokers and borrowers.
In this blog, we’ll outline what we know so far about the changes that will be made, before exploring how the RAW Capital Partners offering can help landlords carry out renovations with greater confidence, and aid brokers in supporting their clients.
What’s changing and when?
Now, the first thing to note is that implementation will be staggered, which means that landlords won’t need to make changes overnight. Instead, they have a five year window to prepare.
Here’s how the changes will be rolled out:
- 2026: The government will confirm the updated EPC requirements and publish legislation to formally raise the Minimum Energy Efficiency Standards (MEES) for the private rental sector. Updated assessments and metrics will also be introduced.
- 2028: The new minimum rating of EPC ‘C’ will apply to all new tenancies, including renewals and extensions.
- 2030: From this point, all tenancies must comply with the new requirements, regardless of whether a property changes hands or not.
From first glance, this timeline sounds generous. However, it’s important to recognise that the scale of change that is needed throughout the Private Rented Sector is significant.
For instance, more than 60% of UK rental properties currently fall below the proposed EPC C threshold, which means that around 300,000 properties could need some form of energy efficiency upgrade.
These could include any of the following:
- Installing or upgrading insulation in a property's loft, cavity wall, or underfloor.
- Replacing single-glazed windows with double or triple glazed units.
- Fitting energy-efficient heating systems (such as a condensing boiler or heat pump)
- Adding solar panels or other renewable energy sources
All these changes are relatively significant, and will require careful, early planning to ensure that landlords are compliant in time for the respective implementation dates.
The financial challenge for landlords
Additionally, financing any necessary changes could pose a challenge to some landlords.
Estimates suggest that upgrading a property from an EPC rating of D to C could cost anywhere between £6,000 and £10,000, depending on the size, condition and construction of the property.
And that’s per unit – so landlords with larger portfolios may find themselves facing renovation costs running into the tens or even hundreds of thousands.
Now, a £15,000 per-property cost cap has been proposed, but it’s not yet clear whether this will be adopted or how it would be applied. And while schemes like the Warm Homes: Local Authority Delivery grant offer some welcome relief, not all landlords (or their tenants, for that matter) will qualify.
For brokers, it’s important to recognise that these changes are being proposed at a time when investors are already facing tighter margins, thanks to rising interest rates, evolving tax rules, and pressure on house prices.
As such, the question for many clients isn’t whether or when to upgrade, but how to fund those upgrades in a sustainable way.
How RAW Capital Partners can help
Fortunately, the RAW Capital Partners team is here to help brokers support borrowers. We know that in the build-up to the implementation dates and amid uncertain economic and market conditions, brokers will be seeking lenders who can provide flexibility, both in terms of how funding can be used and the leverage they can secure.
A new LTV limit
To support this, we’ve recently increased our maximum loan-to-value (LTV) limit from 55% to 70%. It means that brokers and their clients can increase their borrowing capacity to fund the improvements needed to meet the new EPC standards.
Whether a borrower needs to carry out renovations on a single property or across a larger portfolio, our loans provide the breathing space and confidence to act early. We also offer further advances to existing customers, often for relatively modest amounts.
This allows landlords to access additional capital quickly for targeted energy-efficiency improvements without the need for a full refinance.
Lower rates and streamlined pricing
We’ve also introduced a number of recent product improvements that make it even easier for brokers and borrowers to work with us. For example, we recently reduced rates on our higher LTV products — cutting interest by 0.25% on 65% LTV and by 0.50% on 70% LTV mortgages. For foreign nationals, rates now start from 6.24%.
We’ve also removed additional risk premiums for high-risk jurisdictions. Instead, jurisdictional risk is now fully reflected in our core product pricing, simplifying applications and improving transparency – particularly for international investors looking to plan ahead of the 2028 and 2030 deadlines.
With every case considered on a case by case basis, with decisions in principle provided within one business day, brokers and their clients have a simple and flexible solution for EPC-related renovations.
And we offer borrowers an easy out too. We charge a flat £950 repayment fee on tracker products so borrowers who borrow to fund energy-efficiency upgrades can repay whenever they are ready, without being tied into a long-term commitment.
Planning should start now
To briefly conclude, the road to the EPC implementation dates may seem like a long one, and there are still some key details that are yet to be announced. But the scale of change required means that early action will be crucial.
For brokers and their clients, now is the time to start planning – not just the changes that will need to be made, but how they will finance them.
Get in touch with our team to find out more about how we can help: https://rawcapitalpartners.com/mortgages-70