EPC Rating C Target Scrapped – Pros and Cons

EPC rating C scrapped by Mr Sunak

An unexpected u-turn on the governments Zero Carbon targets.

Rishi Sunak has announced that the proposed minimum energy efficiency rating of C by 2025 will now be scrapped.

In a surprising u-turn, during a press announcement regarding Zero carbon targets, the Prime Minister said “while we’ll continue to subsidise Energy Efficiency, we’ll never force any household to do it.”

This means that the Minimum Energy Efficiency Standard will remain at a rating of an E.

EPC Rating Improvement Scrapped: The Pros

Many landlords will see this as a great relief, especial those who own solid wall properties that are usually rated an E or D and would be looking at costs of on average £9,000 to achieve a C rating. With the high demand for rental properties in the UK, the private sector rental market plays an important part in the supply chain and it is critical that Landlords still see renting out their properties as a worthwhile investment. Tenants can also rest assured that their rents won’t be rising to cover the improvements made by the landlord, as ultimately these costs would have to be passed on, one way or another.

Minimum EPC rating C Scrapped – The Cons

The downside to not raising the minimum energy rating of a UK property still mean many tenants will be living in substandard homes that are costly to heat. The current rental EPC rating of an E is not a particular high standard as these types of properties are more prone to having mould and condensation problems. Homes that are EPC rated E instead of C would have to pay more than £1,000 per annum on energy bills, according to research by the Energy and Climate Intelligence Unit (ECIU). Ed Miliband, the shadow energy secretary, said the Prime Minister was “rattled, chaotic and out of his depth”. Although the opposite party attacked the Minister, they said they would not completely undo all the changes made. This leaves landlords in an uncertain position as to whether the changes to the cancelled C rated targets is but a temporary respite that may be restored if there was a change of Government.

Other Zero Carbon Targets That Have Been Relaxed

  • The transition to electric vehicles will be eased and not mandatory.
  • The phasing out of gas boilers will be delayed.

Electric Vehicles

You will still be able to buy non electric cars and vans until 2035 and even after that you will still be able to buy and sell them second hand.

According to Prime Minister Sunak, this will align the UKs approach in line with other European countries such as Germany, Spain, France, Italy and Sweden.

Heat Pumps Replacing Boilers Delayed

You will not be forced to rip out your existing boiler and change to a heat pump. Home owners will be incentivised to make these changes by receiving funding of £7,500 towards the cost of a heat through the Boiler Upgrade Scheme.

The Boiler Upgrade Scheme is not means tested and is available to everyone. The only criteria is that the property must have a valid EPC and there must be no recommendations on the EPC for cavity wall or loft insulation.

If there is a recommendation for loft or cavity wall insulation on the EPC, then the homeowner will have to get those improvements done or have a valid reason for an exemption.

With an average heat pump installation costing £11,000, this means that funding of around 68% of the cost will be available.

Are you a landlord, tell us what you think.


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Rickie Dickson
Written by Rickie Dickson

Rickie Dickson is an experienced and qualified domestic and non domestic energy assessor. He helps homeowners and businesses in all matters relating to energy efficiency, from meeting building regulations compliance to improving a property’s energy rating score.