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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Half of homes in England and Wales fail EPC C targets
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Member Since September 2018 - Comments: 3571 - Articles: 5
6:29 PM, 7th May 2026, About 6 days ago
Reply to the comment left by Billy Gunn at 06/05/2026 – 22:40
if this is the case I see many more landlords calling it a day and selling up….
Member Since February 2026 - Comments: 2
8:23 AM, 8th May 2026, About 6 days ago
Reply to the comment left by Whiteskifreak Surrey at 06/05/2026 – 14:11
No EPC assessor is the same. I agree look for an assessor in your area who has expected similar properties and appears to be making realistic assessments. You can do this by going on the government website to check for EPC‘s on your postcode and study them. You could always get an EPC done on your property next week. If you do, upgrade Loft insulation, to 400 mil ensure every lightbulb is low energy LED, ask tenants to install gas and electric smart metres, and check that you have no blown double units and all rubbers and seals are present and intact (provide him with the receipts for any double glaze units you have recently replaced as they would now be a higher standard) make sure all radiators have TRVs and that you have a room stat installed (minimum). Be available to the EPC assessor and evidence the above has recently been reviewed. If you don’t, he has no choice but to assume an average or poor grade on aspects of the property but appear ambiguous.
Member Since May 2018 - Comments: 2059
3:05 PM, 8th May 2026, About 5 days ago
Reply to the comment left by Billy Gunn at 07/05/2026 – 18:13
It’s not law yet so I suspect that if I wanted to get a BTL mortgage on a band D property this year a lender would still lend.
Ed Miliband has just been told that his net zero plans could risk families using more energy, not less:
https://www.telegraph.co.uk/money/net-zero/ed-miliband-net-zero-push-people-use-more-heating-not-less/?msockid=0b8a4155c7db6ba1058955b1c6196a07
Zero is right.
Member Since October 2024 - Comments: 10
8:29 PM, 8th May 2026, About 5 days ago
Reply to the comment left by Whiteskifreak Surrey at 06/05/2026 – 14:11
Renew your EPC early just before they change the way they measure EPC. You get 10 years from that date. Everything will have changed again in 10 years time.
Member Since January 2025 - Comments: 66
10:15 PM, 8th May 2026, About 5 days ago
Reply to the comment left by Reluctant Landlord at 07/05/2026 – 18:29
I’m hoping my current lender Santander (been with same lender since 2007) will allow me to go on a new deal
I was fixed rate 4.99% for 2 years in 2007 then when interest rates came crashing down I went to their SVR which was actually less, around 4.4% so kept it at the SVR until interest rates started rising again
When they started rising in 2022 I logged into my mortgage account and they offered me 5 years fixed at 3.6%, which runs out around October next year I think
I have seen a few mortgage brokers on Twitter over last year say that some BTL lenders pulling 5 year deals for EPC D or below as obviously a BTL lender will not lend on a property that is legally not allowed to be let
I’m a D64 and was told by an assessor last year that if I increase loft insulation to 400mm, put Tado smart thermostatic valves on all rads and a new UPCV front and back door then I will get C69, I got work quoted at roughly £3,000, but then the assessment method changed and haven’t sent assessor back yet
It’s a steel construction property with asbestos cement roof only worth around 150K. So solar panels aren’t an option because of the roof, only other things I can do apart from those earlier mentioned items is external wall insulation, but for 3 bed semi it’s not cheap
I guess I will find out next summer what happens when I start to look to remortgage or see if my current lender offers anything
Member Since October 2024 - Comments: 9
9:30 AM, 9th May 2026, About 5 days ago
Reply to the comment left by Whiteskifreak Surrey at 14:11
Why don’t you do a new EPC now to extend it’s life span. You could always contact the previous EPC guy who did the initial assessment and ask whether it would still get a C. And just have it ‘renewed’ . i e have another one done resetting the clock.
Member Since April 2018 - Comments: 393
10:18 AM, 9th May 2026, About 5 days ago
Reply to the comment left by Billy Gunn at 08/05/2026 – 22:15
My worry with all this upgrading is if I ever had to do it, how can I rely on a contractor achieving what they promise for the price. Will I be forever pumping money in with the hope it will achieve a better EPC. Also I couldn’t even find a contractor to put in loft insulation in my own house I had to DIY, so what are the chances of finding a contractor who has a clue about anything more complex like upgrading an EPC by insulating external walls. All my properties are currently C or above but I fear the way they intend to change assessments they could even drop to a D.Then when you upgrade they move the goalposts again.
The only glimmer of hope is that this government and others will realise they have to adopt Reform’s policies and shelve Net Zero, if they stand a chance of regaining support.