By using this website, you agree to our use of cookies to enhance your experience.
Graham Awards


Huge number of rented homes won’t make new EPC targets

Forty per cent of privately rented homes in England are unlikely to achieve the energy efficiency rating target set to become law in 2028.

Propertymark says its analysis of the latest English Housing Survey shows that 60 per cent of the rental sector will have achieved the minimum EPC C rating by that time - but four out of 10 will not. 

The Westminster government has yet to respond to a consultation it held in 2020 on how to boost rental sector energy efficiency, but a draft strategy includes a ‘preferred policy scenario’ for new tenancies to have an EPC rating of C or above by 2025, extending to all tenancies by 2028.


A Private Members’ Bill with the same requirements was introduced by Conservative MP Sir Roger Gale in the spring, but has not yet made progress. 

Propertymark wants the Westminster government to move away from a one-size-fits-all policy in favour of energy efficiency proposals that consider a property’s age, condition, and size rather than its tenure.

A new report from Propertymark highlights the variances in retrofitting costs based on individual characteristics and regional property values. It includes proposals for local councils to develop ‘one stop shops’ to engage with landlords to find suitable methods to facilitate retrofit at pace which has also been recommended by stakeholders such as the Local Government Association.

Timothy Douglas, head of policy and campaigns for Propertymark, comments: “We knew it would be a huge challenge for the PRS to achieve the proposed 2028 target because the owners of rental properties will not directly benefit from lower energy bills, so where is their incentive? The data in the English Housing Survey shows just how far there is to go.

“The new UK government should take heed of this projected shortfall if it is serious about net zero, and against the backdrop of the huge sums of money it has had to commit in the short-term to help householders with their rising bills amid the cost-of-living crisis.

“Our member agents are already seeing rental properties disappearing from the market for a variety of reasons and there is a real danger more could go with the EPC rating target hanging over them.

“Propertymark supports moves to improve the energy efficiency of property types and will continue to lobby for a national retrofit strategy with realistic, fair and achievable targets alongside dedicated, long-term grants that consider each property’s individual characteristics.”

According to the English Housing Survey, 68 per cent of housing association homes are currently rated at C or above, compared to 61 per cent of council homes and 42 per cent of those owner-occupied.

  • Matthew Payne

    There are about 2.8 million rented properties that are currently D or lower. When we are already a couple of million rented homes short of what we need, is the govenment really going to remove a further couple of million out of the market, and force LLs to sell up, becasue that is the reality if you deny them the chance to let.

    There are 100,000s of LLs who are not going to spend £20/30/40k retro fitting their Victorian rented properties, with virtually no return, simply to tick the eco box. If you think we have a housing crisis now, wait until 2028.


    Well said, Matthew. Perhaps they are hoping that John Lewis, Lloyds etc will come to their rescue.

    Barry X

    I agree with both Matthew & Fedup Landlord's reply...

    I've long wondered if this is part of an agenda to support the "build to let" and John Lewis etc "repurpose to let" stock at our expense since all of those properties naturally comply with all the current eco rules as they are new builds.

    For whatever reason; ignorance, negligence, perhaps self-interest and certainly pandering to lobby groups in the hope of looking "proactive" and maybe gaining votes one day as a result (just maybe), the government seem willing, if not actually keen, to drive traditional and "small" landlords out of business.

  • icon

    ............it is the government’s strategy to use the green nonsense to force poorer Landlords to sell up to the big corporates............. big business controls our government................

    Vilesh Rew

    "green nonsense"? Hmmmm

  • Barry X

    I'd already made my post above before moving on to read this... yes, I think there's some truth in this.

  • Noel Wood

    As a letting agent, and a private landlord, all I have seen this last two years is stock levels down and rents have shot up. Simply less available houses to rent creating a supply/demand imbalance.
    With more landlords leaving the sector, those that do remain can enjoy higher rentals. Tenants are now paying for the increased tax burden and increased legislative burden. The former I think was a big mistake by George O and a big driver for many landlords, the latter not as much as I agree with the new electric/EPC/smoke regulations but it will pressure more to sell.

    jeremy clarke


    I have seen exactly the same here on the south coast, lowest stock levels ever and highest rents ever with no sign of change.
    Without doubt all the changes we have seen have been the result of Government interference driven by their desire to keep organisations such as shelter and generation rent on their side, the more "Ideals" Government come up with the more landlords will leave. As a result I predict a "black market" of sub-standard landlords dealing with sub-standard tenants i.e. a group serving the needs of those who are not on the radar and cannot fit the mould of a tenant in the real world.


Please login to comment

MovePal MovePal MovePal
sign up