If you let out a property in England or Wales, the energy efficiency rules are changing, and the work to meet them needs paying for. From 1 October 2030, privately rented homes will need to reach EPC band C. This guide covers what is coming and, more importantly, the three realistic ways to fund the work.
From 1 October 2030, rented homes in England and Wales must reach EPC band C or hold a valid exemption. If your property falls short, the three main ways to pay for the work are a further advance, a second charge loan, or a capital raising remortgage when you come off your fixed rate. The right choice usually comes down to whether you are tied into a fixed rate with early repayment charges.
Watch: how landlords can pay for EPC C upgrades
What is changing for landlords in 2030
Right now a rented property has to have an EPC rating of E or better. That standard is being raised. As part of the government's Warm Homes Plan, confirmed in January 2026, privately rented homes in England and Wales will need to reach EPC band C by 1 October 2030.
The headline points worth knowing:
- It is a single deadline of 1 October 2030 for both new and existing tenancies, not the staggered dates floated in earlier proposals.
- The maximum fine for a breach is rising to £30,000 per property, a serious jump from the old limit.
- There is a reward for moving early. A property that reaches EPC C before 1 October 2029 is treated as compliant until its certificate expires, which can buy you up to ten more years under the current system.
- The way EPCs are measured is being overhauled too, with the current rating replaced by a new Home Energy Model from 1 October 2029, so the detail will keep firming up over the next couple of years.
In plain terms, most landlords with a property rated D or worse will have work to do, and a real deadline to do it by. For the full rules and how EPC affects your mortgage, see our guide to the 2030 EPC requirement.
Why it pays to start planning now
2030 sounds a long way off. It is not, once you factor in how these things run. Getting an up to date EPC, getting quotes, booking tradespeople and lining up the money all take time, and the closer everyone gets to the deadline, the busier and pricier the trades will be.
There are two practical reasons to start now. First, money you spend on improvements from 1 October 2025 onwards already counts towards the cost cap, so getting on with it is not wasted. Second, and this is the big one, planning ahead lets you line the funding up to land exactly when you come off your current fixed rate, so you can raise the money without paying early repayment charges to do it.
The smart move is simple: get the work costed and ready now, then raise the funds at the right moment.
What the work costs, and the help available
Costs vary a lot by the age and type of property. The English Housing Survey puts the average cost of bringing a rented home up to band C at around £6,900, rising to roughly £10,800 for older homes built before 1919. So the first job is always to find out where your specific property actually stands.
The good news is the spending is capped. You will not be required to spend more than £10,000 per property, or 10% of the value if the property is worth under £100,000. If reaching band C would cost more than that, you may be able to register a cost cap exemption and keep letting the property for ten years.
There is help with the bill too. The government has pledged billions to the Boiler Upgrade Scheme, which landlords can use towards a heat pump, and local councils run Warm Homes grants, often aimed at tenants on benefits. It is worth checking what you qualify for before you spend.
It is also worth seeing this as an investment rather than just a bill. A more efficient property tends to be warmer, cheaper for tenants to run and easier to let, and it future-proofs the home against a standard that is only going one way.
Three ways to fund the work
Once you know the cost, the question is how to pay for it. For most landlords it comes down to three routes.
1. A further advance
Extra borrowing added to your existing mortgage, with the lender you are already with.
Good because: it is usually the cheapest money available, it is one lender and one monthly payment, and you can often arrange it directly. Some lenders now offer green further advances at a lower rate specifically for work that improves your EPC, so it is worth asking.
Watch out for: not every buy to let lender offers further advances, it still has to pass the rental stress test and loan to value limits, and the rate on the extra borrowing is often higher than your existing rate.
2. A second charge loan
A separate secured loan that sits behind your existing mortgage, from a different lender.
Good because: it leaves your existing rate completely untouched, which matters if you are partway through a cheap fix, it can sometimes raise money where your main lender will not, and the criteria can be more flexible.
Watch out for: the rate is normally higher than a first charge mortgage, it comes with its own fees and a second monthly payment, and your first lender's consent is usually needed.
3. A capital raising remortgage
Moving the whole mortgage to a new deal and releasing the extra funds as part of it.
Good because: it is often the best value when your current deal is ending anyway, you keep one mortgage and one payment, and you get to shop the whole market for the rate. See the difference between a product transfer and a remortgage, and our full remortgage guide.
Watch out for: it rarely makes sense midway through a fixed rate because of early repayment charges, and it means a full application and a fresh valuation.
The one thing that decides it
The best route nearly always comes down to your fixed rate. If you are tied into a fix with early repayment charges, a further advance or a second charge lets you raise the money while keeping your cheap rate intact. If you are free of charges, or your deal is coming to an end, a remortgage is usually the better value option. And if the cost of the work runs past the £10,000 cap, you may be able to register an exemption rather than spending beyond it.
What to do now
- Get an up to date EPC so you know exactly where your property stands.
- Get the improvement work quoted, so you are working off a real number rather than a guess.
- Check when your current fixed rate ends, because that often dictates the cheapest way to fund the work.
- Talk the funding options through with a broker, ideally timed around your deal ending so you are not paying to exit early.
Thinking about how to fund the work?
If you have a rental that needs bringing up to standard, Debbie at DS Financial can look at your situation and work out whether a further advance, a second charge or a remortgage makes the most sense, and help you time it so you are not paying early repayment charges. No pressure, just a straight answer.
Book a free chat with DS FinancialThis article is general information and not personal financial advice. Your circumstances should always be reviewed individually before you make any decisions. Your property may be repossessed if you do not keep up repayments on a mortgage or any other loan secured against it. Some buy to let mortgages are not regulated by the Financial Conduct Authority. DS Financial is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority, Firm Ref 835094.
Sources: gov.uk, government response on privately rented homes energy performance; gov.uk, Warm Homes Plan; English Housing Survey; The Mortgage Works, guide to the new EPC rules.