More than half (52%) of rental properties in England currently fall short of the EPC standard expected under the upcoming 2030 government regulations.
With the government preparing to overhaul how Energy Performance Certificates (EPCs) are calculated, an energy efficiency expert is urging landlords to reassess their heating systems, particularly older storage heaters.
With tougher requirements coming into force next year, how rental properties are assessed on their energy rating is set to change. From this point, EPCs will be calculated using the new Home Energy Model (HEM), which places greater emphasis on how efficiently a property is heated, rather than just its running costs.
As tougher minimum standards of EPC C are expected under the new methodology, Ben Rawson, energy efficiency expert at Electric Radiators Direct, says inefficient storage heaters are emerging as an overlooked risk across the private rental sector.
“Many landlords assume they’re EPC compliant because they’ve upgraded insulation or glazing; however, inefficient or poorly controlled heating systems can undo that work entirely,” Ben says. “As enforcement tightens under new government regulations, this oversight could quickly become a costly mistake.”
Here, Ben explains the key EPC changes and what landlords should be doing now to protect compliance.
What is EPC, and why does compliance matter for landlords?
In short, EPC ratings are an estimate of a property’s overall energy efficiency. Including factors such as insulation quality, lighting and windows, heating plays a major role in the outcome of an EPC rating.
Under current regulations, private rental properties in England must meet a minimum EPC rating of E to be legally let. Landlords who fail to comply can face penalties, including fines of up to £5,0001 and restrictions on letting their property.
Looking ahead, proposed changes by the government to EPC legislation mean landlords will face even greater responsibilities. From 2030, all privately rented homes in England are expected to have an EPC rating of C or above.
However, fewer than half (48%) of privately rented homes in England currently meet an EPC rating of C or above, highlighting the scale of work many landlords still need to undertake.
What is changing under the Home Energy Model?
The Home Energy Model will replace the existing SAP methodology used to generate EPCs for existing homes. It has been designed to more accurately reflect how homes use energy, with a greater emphasis on how efficiently a property is heated, how responsive the heating system is, and how effectively temperature can be controlled. This includes placing increased weight on the building fabric and heating system performance, as well as recognising the role of modern controls and smart technologies.
For landlords, this means properties that currently rely on outdated heating systems may see their EPC rating change if no physical alterations have been made.
Why are older storage heaters a growing compliance risk?
Many rental properties still rely on older night storage heaters, particularly in flats. While originally designed to make use of off-peak tariffs, these systems often struggle to align with modern-day living patterns.
Older storage heaters typically release heat when it is not needed, offer limited temperature control and require costly daytime “boost” functions. They also lack compatibility with smart controls, which are expected to be recognised under the new assessment model.
Under the Home Energy Model, systems that lack responsiveness or accurate temperature control may be harder to demonstrate as energy-efficient, even where other upgrades have been made. This positions storage heaters as a risk factor for future EPC compliance.
Why landlords should upgrade to modern HHR models
Upgrading to modern high heat retention (HHR) storage heaters is currently one of the easiest and most effective ways to improve heating performance. Unlike older models, HHR heaters are designed to store heat more effectively and release it in a controlled way throughout the day.
Perhaps most importantly, HHR systems offer improved temperature control and better responsiveness, helping to address some of the key limitations associated with traditional storage heaters.
Another option landlords could consider is upgrading to modern electric radiators, which provide heat on demand rather than storing energy in advance. Crucially, they offer a level of control that aligns more closely with how EPC assessments are expected to evolve.
Electric radiators typically feature thermostats, allowing tenants to schedule their heating room by room so that heat output more closely matches actual usage. They also integrate readily with smart controls, an area expected to gain further recognition under HEM.
Why landlords should act now
Although the EPC C requirement is not expected until October 2030, landlords should act sooner rather than later. Upgrades completed now can secure compliance for the lifespan of their current EPC, which is typically up to ten years.
With tighter enforcement expected and assessment methods evolving, waiting until the deadline could increase both cost and complexity. For landlords managing electrically heated properties, reviewing existing systems now may help avoid unexpected shortfalls when EPCs are next reassessed, and help stretch the cost of improvements over the next couple of years.
