Energy efficiency has become one of the biggest talking points in the UK property sector. For landlords, the changes to Energy Performance Certificate (EPC) regulations coming in 2025 represent both a challenge and an opportunity. The rules will tighten, with a stronger focus on making rental homes more energy efficient and environmentally friendly. If you own rental property in Leeds or West Yorkshire, understanding what these changes mean, how they will affect you, and how you can prepare is crucial. At KeyStep Properties, we specialise in guiding landlords through regulatory shifts like this, ensuring your property portfolio remains compliant, profitable and attractive to tenants.
What Are EPCs and Why Do They Matter?
An EPC is a document that rates the energy efficiency of a property on a scale from A (most efficient) to G (least efficient). It includes information about the property’s energy use, estimated costs and recommendations for improvements. Currently, landlords must ensure their properties reach at least an EPC rating of E before they can be rented out. However, the government is tightening these requirements to reduce carbon emissions from the UK housing stock. From 2025, all newly rented properties will need to achieve an EPC rating of C or above, and by 2028, this rule will extend to all existing tenancies.
For landlords in Leeds and across West Yorkshire, this is a significant change. Many of the rental properties in our region are older homes, often Victorian or Edwardian terraces, which are charming but not always energy efficient. Meeting these higher standards will take investment, but it can also add long-term value to your portfolio.
What Will Change in 2025?
From 2025, if you want to start a new tenancy agreement, your property will need an EPC rating of at least C. Properties rated D or below will no longer be legally lettable unless exemptions are granted. These exemptions may apply in certain circumstances, such as if the cost of improvements exceeds the government’s spending cap or if specific energy-saving upgrades are not technically possible.
The change is part of the government’s broader Net Zero targets. The Department for Business, Energy & Industrial Strategy has stated that improving housing stock energy efficiency is a central plank of reducing overall emissions. According to government data, around 60% of homes in England currently have an EPC rating of D or lower, meaning millions of properties will need work before the new rules take effect.
Why This Matters to Landlords in Leeds and West Yorkshire
The Leeds rental market is thriving, with strong demand from students, young professionals and families. However, competition is increasing. Tenants are becoming more selective, often prioritising energy efficiency and lower running costs when choosing where to live. A property with a higher EPC rating will be cheaper to heat, which is particularly attractive in the current climate of fluctuating energy prices.
For landlords, this shift means that improving your property’s EPC rating is not just about legal compliance but also about staying competitive in the marketplace. KeyStep Properties works closely with landlords to ensure properties are not only compliant but also attractive to the modern tenant.
What Upgrades Improve EPC Ratings?
Improving an EPC rating usually involves a combination of insulation, heating system upgrades and better use of renewable energy technologies. Some of the most common improvements include:
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Loft and cavity wall insulation
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Upgrading single glazing to double or triple glazing
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Replacing older boilers with modern condensing boilers or heat pumps
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Installing low-energy lighting
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Adding solar panels where possible
The cost of these improvements will vary depending on the property, but government studies show that upgrading from an EPC D to a C could save a household around £200 – £300 per year on energy bills. For landlords, this translates into a more marketable property with a lower risk of void periods.
Financial Considerations and Support
The government has set a spending cap of £10,000 for landlords required to make improvements, although this figure is under review. If the required upgrades exceed that cost, you may be able to apply for an exemption, although it is important to document all attempts to comply.
Some financial assistance may be available through local grants or green finance schemes. Leeds City Council, for example, has previously offered schemes to improve insulation and heating systems in rental homes. At KeyStep Properties, we keep landlords updated on such opportunities, helping to minimise costs while ensuring compliance.
Long-Term Benefits of Compliance
It is easy to focus on the costs of these upgrades, but landlords should also consider the long-term benefits:
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Higher property values as energy efficiency becomes a stronger selling point
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Increased rental yields as tenants are willing to pay more for energy-efficient homes
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Reduced void periods due to greater demand for efficient properties
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Future-proofing your portfolio against further regulation changes
Property experts have noted that homes with better EPC ratings can sell for up to 14% more than less efficient equivalents. In addition, mortgage lenders are starting to factor in EPC ratings when approving buy-to-let mortgages, with some offering preferential rates for properties rated C or above.
Common Challenges for Landlords
Of course, not all properties are straightforward to upgrade. Older properties, especially those built before 1920, often lack cavity walls or have limitations around installing insulation. In some conservation areas in Leeds, restrictions may also apply to external changes such as solar panels or window replacements.
This is where professional property management becomes invaluable. At KeyStep Properties, we help landlords navigate these challenges by arranging energy assessments, managing improvement works and liaising with tenants to ensure minimal disruption.
How KeyStep Properties Can Help
As a landlord, your time is valuable. Ensuring compliance with EPC regulations can be a complex and time-consuming process. KeyStep Properties offers a full property management service designed to take this stress away. From organising EPC assessments to overseeing upgrades and maintaining compliance records, we act as your partner every step of the way.
If you are considering expanding your portfolio, we also provide guidance on selecting properties that already meet EPC requirements or can be upgraded cost-effectively. Our Guaranteed Rent Scheme gives landlords the additional security of knowing that rental income is protected, even during periods when upgrades are being completed.
Practical Steps Landlords Should Take Now
With the 2025 deadline approaching, it is essential to act sooner rather than later. Here is a simple action plan:
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Check your current EPC ratings and expiry dates
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Identify properties rated D or lower and arrange updated assessments
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Speak to KeyStep Properties for advice on the most cost-effective improvements
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Explore financing options, including grants and green mortgages
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Schedule upgrade works well in advance to avoid last-minute issues
Keystep understand EPC changes
The EPC changes coming in 2025 are a clear signal that the UK rental market is moving towards higher energy efficiency standards. While the new rules may seem daunting, they also present an opportunity for landlords in Leeds and West Yorkshire to add long-term value to their properties, attract better tenants and secure more reliable income.
At KeyStep Properties, we understand the challenges and opportunities that these changes bring. Our team is here to help landlords prepare, upgrade and stay compliant, ensuring your portfolio remains competitive in a fast-evolving market.
If you are a landlord with properties in Leeds or the wider West Yorkshire area, now is the time to take action. Contact KeyStep Properties today to arrange an EPC review and discover how we can help you future-proof your investment.