In an effort to accelerate the UK’s transition to a more energy-efficient housing market, new regulations will require all rental properties to achieve a minimum Energy Performance Certificate (EPC) rating of C by 2030.
While these regulations are a step forward in making homes more sustainable, they also present significant challenges for landlords and homeowners, from the financial costs to questions about the accuracy of EPC assessments.
We take a look at these challenges and what homeowners and landlords need to be aware of.
The scale of the challenge
The challenge of reaching EPC C is vast. According to data from epIMS, an energy efficiency platform for landlords, over a third (33.8%) of all homes listed for sale in Britain fall below the required EPC C standard.
This figure is even higher in parts of the UK - around 50.1% of homes in Wales and 45.7% in Scotland are not up to scratch. England fares somewhat better, but still, 33.2% of homes would fail to meet the new EPC regulations.
In cities like Bradford, over 46% of properties fall below the required standard, with other cities such as Edinburgh (39.6%) and Brighton (39.4%) not far behind. Even London, where energy-efficient properties are more common, still sees almost a quarter (23.5%) of homes rated D or lower.
This stark reality highlights the huge scale of the task ahead, with millions of properties needing upgrades to meet the EPC C target.
The cost implications for landlords and homeowners
One of the biggest concerns with the new EPC requirements is the cost. Landlords, in particular, face substantial financial pressure to upgrade their properties.
Research suggests that the average cost of bringing a property up to EPC C standard is around £8,000. For many landlords, this represents a significant outlay, especially after facing multiple regulatory changes in recent years.
Craig Cooper, COO of epIMS, expressed his concerns: "Landlords have already faced numerous legislative changes that have affected their financial returns. The requirement to meet an EPC C rating is another significant hurdle.
"While a greener rental sector is a positive development, the government’s fabric-first approach may not always be the most cost-effective for landlords. Alternative solutions, such as installing solar PV panels, could be a more affordable way to achieve the necessary improvements without incurring excessive costs."
Karl Bantleman, Managing Director of building suppliers Direct365, highlighted practical changes that can be made at a lower cost: "Small upgrades like switching to LED lighting, improving insulation, and installing smart thermostats can make a noticeable difference in EPC ratings. Larger changes, such as replacing an old boiler, will require a bigger investment but can significantly increase both energy efficiency and property value in the long term."
Is the EPC system fit for purpose?
While EPCs are intended to provide a snapshot of a property’s energy efficiency, questions about their accuracy and fairness are raising concerns.
Consumer watchdog Which? has called for an overhaul of the EPC system, citing inconsistencies in assessments and outdated evaluation methods.
Research reveals that only 36% of UK homeowners are aware of their property’s EPC rating, and only 29% have reviewed the recommendations for improving it. Which? argues that EPCs should be updated to reflect real-world energy use and incorporate modern, low-carbon heating solutions, instead of relying on assessment methods that may not consider the full scope of energy-saving measures.
Tim Pullen, an energy expert at Homebuilding & Renovating, criticised the system’s outdated approach: "The software used to generate EPCs is outdated and fails to account for new technologies accurately. The system needs an overhaul to provide homeowners with a more reliable and realistic measure of their property’s energy efficiency."
Real-life examples of EPC ratings
A real-life case shared by Homebuilding & Renovating illustrates the challenges in accurately assessing a home’s energy performance.
A couple who had invested heavily in their eco-friendly home – installing high levels of insulation and an air source heat pump – saw their EPC rating drop from a C to a D. The downgrade occurred because the assessor was unable to account for the unseen energy-saving measures they had installed.
David Hilton, a heating expert, commented on this: "It’s absurd that a home’s energy efficiency rating depends on what an assessor can visually confirm, rather than taking into account documented energy-saving features. This undermines efforts to improve sustainability in the housing sector."
With more than 35 years of expertise, David is a seasoned renewables and ventilation installer, recognised for his longstanding contributions to Homebuilding and Renovating magazine. Holding membership in the Gas Safe Register and armed with a Masters degree in Sustainable Architecture, David stands as an authoritative figure in sustainable building and energy efficiency. His extensive knowledge spans building fabrics, heat recovery ventilation, renewables, and conventional heating systems. Additionally, he serves as a distinguished speaker at the Homebuilding & Renovating Show.
How homeowners and landlords can improve their EPC rating
To help homeowners and landlords meet the new EPC requirements, the government has introduced several support measures, including grants and incentives.
For example, the Boiler Upgrade Scheme offers up to £7,500 for the installation of heat pumps, and further financial assistance may be made available as the 2030 deadline approaches.
Nic Gillanders, CEO of SCIS, emphasised the need for collaboration: "Improving energy efficiency is critical for reducing national grid strain and fighting climate change. If implemented correctly, EPC regulations could be a game-changer for sustainability, but only if landlords receive the right support."
With the 2030 deadline looming, landlords should start planning upgrades now to avoid penalties. Suggestions for improving EPC ratings include improving insulation, upgrading heating systems, replacing old boilers, and considering the installation of renewable energy sources like solar panels.
Additionally, homeowners can benefit from energy audits, which can help pinpoint areas for improvement and ensure that the right measures are taken.
While these changes come with a cost, the long-term benefits of a greener property – including reduced energy bills and increased property value - are significant. Moreover, the move towards higher energy efficiency aligns with the UK’s broader goals of tackling climate change and reducing carbon emissions.
