55% of homes are below EPC targets in England and Wales
3 weeks ago | 1 comments
EPC ratings drive rental values as industry body urges realistic targets
9:18 AM, 6th May 2026, 1 week ago
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Energy-efficient properties are attracting rental premiums, as an industry body warns that EPC targets need to remain realistic.
Data from the Mortgage Works reveals that an EPC rating is a core driver of a property value.
Propertymark warns EPC targets must be backed by proper funding as all private rented properties will need to meet EPC C targets by 2030.
More than half of PRS homes rated A-C
According to the data, more than half of private rented properties (51%) are rated A-C , up from 25% ten years ago.
The lender explains that part of the improvement is due to newly built properties, which tend to have a much higher energy efficiency rating (around 97% are rated C or above).
The data also reveals the North of England now sees the highest rental premium, with an A or B-rated property commanding a 13.3% higher monthly rent.
An A or B rated property currently attracts an 8.1% rental premium compared to a similar D rated property, up from 7% in 2024.
Targets must be realistic
Megan Eighteen, President of ARLA Propertymark (Association of Residential Letting Agents), says more support is needed to help landlords with the cost of EPC targets.
She said: “Nationwide Building Society’s latest report highlights both the progress made and the ongoing challenge of improving energy efficiency across the private rented sector.
“It’s encouraging that more than half of privately rented homes are now rated EPC A-C, which can help tenants benefit from warmer homes and lower energy bills. However, much of this progress has come from newer properties, with the biggest challenge now focused on older homes that are more complex and costly to upgrade.
“The stronger gains seen in the North reflect lower property values and more room for improvement, making it easier for some landlords to invest. But this varies across the country, and in many cases upfront costs remain a significant barrier.
“We support the ambition to raise standards, but targets must be realistic and backed by proper funding and clear guidance. Without this, there is a real risk that landlords will scale back investment or exit the market. Over time, that could reduce the number of homes available to rent, which may put further pressure on affordability for tenants.”
According to The Mortgage Works, the average costs to improve older properties, particularly those built before 1919, remain significantly higher, with the average cost to upgrade a pre-1919 property to band C around £10,700 (based on 2024 costs).
Properties built more recently tend to be more energy efficient, meaning fewer improvements are required to bring them up to C standard, with the average cost to upgrade a property constructed between 2003 and 2013, currently rated D–G, to C standard at around £2,500.
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What’s the true cost for landlords to get properties to EPC C by 2030?
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Member Since June 2019 - Comments: 803
10:39 AM, 6th May 2026, About 1 week ago
EPCs will indeed drive rents – higher and higher as the hurdles increase (hurdles which ONLY apply to the PRS of course).
Member Since April 2018 - Comments: 393
10:46 AM, 6th May 2026, About 1 week ago
In decades of renting never had a tenant ask what is the EPC. I think most of this is lies by the government and in their pocket media to push Net Zero. Aside from this if there becomes a severe shortage of properties, even below an EPC “C” landlords should have the upper hand, in a free market, to set rents at basically what they want and if tenants are not in the position to buy they will be forced to pay or be homeless. Then will the government do a U turn on minimum EPC values. But if we still have a Marxist government who knows.
Member Since June 2014 - Comments: 1568
11:22 AM, 6th May 2026, About 1 week ago
Tenants couldn’t care less about EPC’s.
What is the real motivation behind this article?
Member Since June 2019 - Comments: 803
12:38 PM, 6th May 2026, About 1 week ago
Reply to the comment left by Monty Bodkin at 06/05/2026 – 11:22
Mortgage companies are now rated on the EPC of their loans so are looking for more C+ properties. There was a government consultation on this in 2021 so they are keen to push up the average in their portfolio.
Member Since June 2014 - Comments: 1568
2:09 PM, 6th May 2026, About 1 week ago
Reply to the comment left by Paul Essex at 12:38
Quite right Paul.Nothing to do with helping tenants, all about the far left elite green agenda that wasn’t voted for.
Member Since February 2016 - Comments: 978 - Articles: 1
2:11 PM, 6th May 2026, About 1 week ago
We are ready to install solars on our property (semi, currently C, but expires, very inconveniently, in 2030).
We spoke to our builder and he thinks the roof is bot strong enough to hold the installation. Making it stroneger will cost a fortune, before installing.
On the other hand I have read that without either solars or heat pump, grade C would be unachievable.
Any ideas what to do?
Many thanks in advance.
Member Since June 2014 - Comments: 1568
2:34 PM, 6th May 2026, About 1 week ago
Reply to the comment left by Whiteskifreak Surrey at 06/05/2026 – 14:11
“(semi, currently C, but expires, very inconveniently, in 2030).”
Why is it inconvenient? You can get one done tomorrow if you’re bothered about it.
“Any ideas what to do?”
Look at neighbouring properties on the EPC register for a C rating and use that assessor rather than a jobsworth.
Member Since April 2018 - Comments: 393
2:38 PM, 6th May 2026, About 1 week ago
Reply to the comment left by Whiteskifreak Surrey at 06/05/2026 – 14:11
Vote Reform and hope they will reverse Net Zero as they have indicated and EPC minimums or just sell. Otherwise I fear you will be digging a hole as this government piles on more pressure to meet their targets.
Member Since May 2018 - Comments: 2059
5:49 PM, 6th May 2026, About 1 week ago
So this article says:
“The data [reveal] the North of England now sees the highest rental premium, with an A or B-rated property commanding a 13.3% higher monthly rent….An A or B rated property currently attracts an 8.1% rental premium compared to a similar D rated property, up from 7% in 2024.”
I’m not really sure what the data do reveal, but think I’d be going for the 13.3% increase in PCM rent if I had to do it today, and if the premium has gone up one % point in the last two years that could easily be a 15-20% increase in rent by the time the EPC regulations require you to meet band C or above, if indeed that policy is ever implemented.
Which means, now that the Renters Rights Act is with us limiting rent increases to no more than once yearly and then no higher than market rent, “market rent” for an A or B property is significantly higher than for a D-rated property and according to the data, this is pushing up market rents.
My tenants aren’t asking me to increase my EPC rating and they have never asked me to do it. If I did do it, I would expect to increase the rent very significantly because I would need to raise extra finance and I’m unable to offset these finance costs against rents, being non-incorporated. I’m guessing that will put me in the area of a 20% increase in PCM after I’ve evicted the tenants to do the work and then re-let the property.
Member Since September 2018 - Comments: 3571 - Articles: 5
6:39 PM, 6th May 2026, About 1 week ago
Reply to the comment left by Whiteskifreak Surrey at 06/05/2026 – 14:11
do nothing. If you have a tenant in by the time any legislation passes there is an exemption route. All they have to do is say they don’t want the work doing and do not give access. There is your 5 year exemption. if they leave within the 5 years you are free to decide to make the decision to upgrade to whatever is needed, or not, or sell, or let via another route.
NB if you present to the tenant the potential upheaval and the fact that the work will mean the property is of higher standard and so command a higher rent….then they may just sign to say they refuse for the work to be carried out, just to avoid the rent increase.