Landlords face £30,000 fines under Labour on rental homes failing to meet targets

The legislation applies to breaches of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.

The Government confirmed in January that the minimum standard for privately rented homes would rise from E to C.

Councils would gain significantly expanded powers under the Bill, including the authority to request documentation, conduct property inspections, and impose financial penalties on non-compliant landlords.

Local authorities would also gain better access to compliance data, enabling them to pinpoint rental homes that fall short of the required energy-efficiency threshold, according to analysis by Propertymark.

The legislation goes further by prohibiting letting agents and property portals from marketing rental properties that do not meet the minimum standard.

The Bill also addresses a loophole affecting houses in multiple occupation.

Under the current framework, single-room lets in HMOs fall outside the scope of minimum energy efficiency rules, but the Bill would extend the regulations to cover these properties.

Rented homes must either achieve the required EPC C rating or have a valid exemption registered in order to be lawfully let from the October 2030 deadline.

The Bill would enshrine the Warm Homes Agency in statute, creating a dedicated body designed to streamline access to guidance and financial support for homeowners and landlords undertaking energy efficiency improvements.

Landlords are expected to spend up to £10,000 on upgrades before qualifying for an exemption from the minimum standard, a threshold confirmed in the Government’s January 2026 consultation response.

The proposed £30,000 penalty was deliberately set above this investment cap to ensure non-compliance carries a meaningful financial consequence.

The Government estimates that bringing a typical buy-to-let property up to EPC C will cost an average of £5,400.

The National Residential Landlord Association estimates that more than two million rental properties across England and Wales still require improvement, with the October 2030 deadline now less than four years away.

Chris Norris of the NRLA cautioned that the tougher regime overlooked the financial realities confronting buy-to-let investors.

He told the Telegraph: “Given current market conditions, meeting the EPC ‘C’ benchmark will prove to be a significant challenge for many landlords.

“The ‘big stick’ of fines will not change this dynamic unless policies are introduced which encourage, rather than deter, investment in rental properties.”

Timothy Douglas of Propertymark predicted that the new penalties would push “more landlords to sell their properties” before the 2030 cut-off arrives.

He said: “With landlords already facing rising mortgage costs, taxation, maintenance bills and increasing regulation, the prospect of fines of up to £30,000 adds further pressure.”

In a statement, a Department for Energy Security and Net Zero (DESNZ) spokesman told GB News: “Every renter has the right to a decent home – and these new standards will ensure warmer homes and lower bills for millions of renters.

“This is a reasonable ask of landlords and has been welcomed by both tenant and landlord groups, with almost half of privately rented homes already meeting similar standards.”