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Key Takeaways:
- EPC regulations in London require rental properties, including short-term rentals, to have an EPC rating of C by 1 October 2030.
- Qualified expenses toward energy-efficiency improvements from 1 October 2025 will be credited toward the £10,000 cap.
- Short-term rentals should meet EPC standards due to tighter regulations, rising operating costs, and evolving market expectations.
- An early start to EPC compliance will help shortlets with cost planning and improvement schedules without disrupting rental operations.
- Structured planning with a property management expert can help ensure smoother, cost-efficient compliance.
An Energy Performance Certificate (EPC) is a rating that assesses a property’s energy efficiency and environmental impact in the UK. It helps landlords and tenants understand how a high EPC can manage costs and maintain sustainability.
EPC Guide for Shortlets: Why Is It Important in London
Knowing the latest Energy Performance Certificate or EPC guide for shortlets should be part of your strategy this 2026. London landlords are facing significant changes to regulations in the private rented sector, including the looming EPC C rating compliance deadline on 1 October 2030.
While this deadline seems far off, many regulations under the Renters’ Rights Act will be implemented in the next few years. Last-minute compliance might cost you more or lead to mistakes that could compromise your property’s earning potential.
Early compliance matters, especially for London landlords, for three reasons.
- Tighter regulations. Whether you have short-term, mid-term, or long-term rentals, you need to comply with the EPC C rating. It has become a non-negotiable policy for housing. Failure to comply may affect your ability to rent the property and could result in costly fines.
- Rising operational costs. Shortlets have higher operating costs than longlets because the owner pays utility bills. With the rising energy costs, these bills can impact profitability. By being more energy-efficient, you can protect your profit to minimise operational costs.
- Evolving market expectations. Guests are more eco-conscious now, and they prefer sustainability and comfort. Improving your property’s EPC rating translates to better heating, insulation, and a higher-quality stay.
EPC compliance should not be treated as a legal requirement. It should be part of your strategy to improve the performance of your shortlet in London. By maintaining a high-performing rental property, you can stand out in London’s competitive shortlet market.
What is the Latest EPC Guide for Shortlets in London?
The latest EPC guide for shortlets includes practical updates to help property owners make improvements strategically. With energy-efficiency upgrades costing £7,633 to £12,000, you need to approach this with a plan to ensure full compliance without depleting your resources.
Did you know:
As of March 2026, 3.38 million properties fall short of the EPC target C-rating, with upgrade costs expected to exceed 50% of the total annual rental income. – Letting Agent Today
While making a property more energy-efficient is costly, non-compliance carries fines of up to £30,000. So if you have to spend, let it be on energy-efficient upgrades.
What do you need to know about the EPC regulations?
First, your shortlet should have an EPC rating of C by 1 October 2030. There is also a £10,000 cost cap for every property you own. Once you’ve reached that cap and you can provide evidence of the expense, your property is exempt for the next 10 years, or until your certificate is valid.
This will apply to all properties across England and Wales, not just London. Make sure you keep clear records of your expenses to show compliance.
Major Update: Early Spending Counts
One of the most important updates on the EPC regulation is the £10,000 cost cap. It states that all qualified improvements made on or after 1 October 2025 will be counted towards the cost.
Instead of waiting until the deadline, landlords can act now to avoid rising property upgrade costs. They can also choose to spread the overall cost over time. This will ease the financial burden on London landlords.
Grandparenting Rule
The “grandparenting rule” is also worth noting. According to the update, if your property is already EPC C before 1 October 2029, you don’t have to do anything to stay compliant. Your property will be safe until your certificate expires, which is a long time considering EPC’s are valid for 10 years.
This ensures you don’t have to repeat work or costs to ensure compliance.
What this means for London shortlets
While the minimum C rating and 1 October 2030 deadline still apply, the updates give London landlords a chance to be more strategic with their energy-efficient upgrades. They can schedule the expense to ease the financial cost of reaching a C-rating.
This allows them to avoid the rising cost of property upgrades or the stress of finding the right contractors to do the work. This also ensures the upgrades won’t disrupt rental operations, so the property will continue to earn.
What Should Shortlet Landlords Do Now to Comply?
With the updates on the EPC rules, London property owners should start planning and taking steps to lift their rating to C. Here are tips to get you started.
Assess your current EPC rating
Review your current EPC rating. The farther you are from a C rating, the more work needs to be done.
Once you’ve confirmed your rating, find out what improvements are needed to make it a C. List the improvements and research the cost estimate to get them done. This will give you a ballpark figure of the expense.
Plan cost-effective improvements
Use your list of improvements to find cost-effective options. Among the upgrades you might need and the cost estimate are as follows:
- Improved insulation
- Floor: £1,200 and £5,500
- Internal wall: £7,000 to £10,000
- External wall: £10,000 to £16,000
- Cavity wall: £1,600 to £3,500
- Loft: £600 to £1,000
- Energy-efficient heating systems or boilers:
- New or replacement gas boiler £1,200 to £5,000
- Heat pump: £7,000 to £14,000
- Double-glazed windows: £400 to £1,500 (per window)
- Smart heating controls: £79 to £300+
Choose the best option for your property without exceeding the £10,000 cost cap.
Phase improvements over time
Once you have the list of improvements and the cost implications, schedule the upgrades. Find out what improvement is most urgent so you can prioritise.
For instance, you can change the boiler or heating system first. You’ll benefit from the energy bill savings over the years. Or you can spend on the double-glazed windows first if your boiler does not consume too much energy.
By scheduling the improvement, you can save money and align installations with maintenance cycles.
Maintain compliance records
Every installation or improvement should be documented accordingly. File these together with your other compliance records.
Keep all receipts of qualified upgrades so you can file and track them as part of the cost cap. Take note of dates when installations and improvements are made. These will not just help you keep track, it will also tell you when the next maintenance schedule should be.
Consider professional compliance support
Managing a rental property while ensuring compliance requires attention to detail and time. To ensure day-to-day operations don’t make you forget compliance schedules, partner with a professional to handle bookings, maintenance, and guest communication.
A property management company can help you:
- Assess current EPC status
- Identify cost-effective ways to elevate your EPC rating
- Coordinate with trusted contractors
- Ensure compliance documents are filed accordingly
- Align upgrades with rental operations to avoid disruption
Property management companies like City Relay have the expertise to help you create a long-term EPC upgrade plan so it doesn’t feel like a financial burden.
EPC Compliance: Plan Early to Perform Better
Reading an EPC guide for shortlets is the first step to compliance. What you do after you have the information matters.
When it comes to compliance, planning for an early start is always the best approach. It allows you to consider your options, have enough time to save money, and schedule the implementation without compromising your short-term rental’s operations.
Although the 2030 deadline is still a couple of years away, you can position yourself to be compliant as early as now. If you want to understand how this will affect your rental income, contact City Relay. We can discuss your options and help you plan a schedule to meet current EPC requirements without delay.
FAQs
Do short-term rental properties in London require an EPC?
Yes, all rental properties in London should have a valid EPC before they can operate. This includes short-term, mid-term and long-term rentals. As long as it’s a residential accommodation, it should have an updated certificate that meets the minimum energy standards.
Regulations will tighten by 2030, when the minimum EPC rating rises to C. Make sure your property complies with the new requirements. If it does not have a C-rating, improve your property before the deadline to avoid penalties of up to £30,000.
What EPC rating will be required for rental properties by 2030?
The government confirmed that rental properties should have an EPC rating of C by 2030. The deadline is 1 October 2030.
This regulation applies to all properties in the private rented sector. It supports the government’s initiative to have more energy-efficient housing.
Should landlords start EPC improvements, or is it better to wait?
It’s always encouraged to comply with regulations as early as possible. As of 1 October 2025, all qualified expenses incurred for EPC improvements will be credited against the £10,000 cost cap. When you reach this cap, your property is exempt from penalties or fines, even if it does not reach a C-rating.
By working on EPC compliance now, you can spread the cost burden over time. You can afford to wait and save to pay for improvements. You can also avoid the higher cost of improvements, including labour and materials.
