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Home GREEN

Uphill battle for landlords to meet government energy efficiency target

Property Industry Eyeby Property Industry Eye
June 20, 2025
Reading Time: 2 mins read
in GREEN, REAL ESTATE, UK&IRELAND
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With just three years to go before the 2028 compliance deadline, more than 1.8m privately rented homes in England still fall short of the Government’s proposed minimum energy efficiency standard of EPC rating C, new analysis by LandlordBuyer shows.

The company used the latest data from the MHCLG and EPC Register and found that as of Q2 2025, only 42.3% of privately rented homes in England currently meet EPC band C or above, while 1.82million rental properties remain rated D or below, many requiring significant retrofit works to comply.

The average cost of upgrading a D-rated property to C is estimated between £7,400 and £10,000, depending on property type and region.

LandlordBuyer’s research highlights stark regional variations in EPC readiness. In London, 56.1% of private rented homes are rated C or above, with 310,000 estimated to be below C. This is significantly higher than other areas of the UK, with the South West of England at 37% and 210,000 respectively.

In the north the figures are even worse, with 33.9% of North West properties rated C+, and 290,000 estimated to be below C. In Yorkshire and the Humber the figures are 32.8% and 265,000 respectively.

With the average private landlord owning 1.4 rental properties, the cumulative cost of meeting the EPC target could exceed £15bn nationally, prompting concern about affordability and potential knock-on effects for tenants.

Jason Harris-Cohen, managing director at LandlordBuyer, said: “This represents a significant retrofit challenge for landlords, many of whom face difficult decisions between absorbing costly upgrade expenses, raising rents, or exiting the market altogether.

“The regional disparities in compliance also highlight the need for targeted support and clear government enforcement timelines. Without urgent action and financial incentives, both landlords and tenants risk being caught in a difficult position – landlords struggling with affordability and tenants facing higher energy bills.”

 

Read the orginal article: https://propertyindustryeye.com/uphill-battle-for-landlords-to-meet-government-energy-efficiency-target/

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