Tenants prioritise EPC ratings when choosing a home
4 months ago | 11 comments
Government consultation exposes unintended consequences of EPC reforms
8:01 AM, 23rd January 2026, 3 months ago
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A government consultation document admits landlords may sell up or increase rents due to EPC rules.
The Improving the Energy Performance of Privately Rented Homes impact assessment document reveals the wider impact of the government’s rules to have all private rented sector (PRS) properties meet EPC C targets by 2030.
The government has also announced reforms to the way EPCs are calculated, with a new metric system set to be introduced.
Landlords may decide to exit the market
The government consultation says there are different outcomes for how landlords will react to the changes.
However, the document warns landlords could decide it will be more profitable to sell and gives the example of previous EPC regulation changes leading to falling property values.
The document says: “Landlords may decide to exit the market. The likelihood of this is dependent on the current profitability of their rental property, the level of costs they face, the price landlords would receive from the sale of their property and their wider financial circumstances.
“The prices of EPC F/G PRS properties affected by the current regulations (requiring PRS properties to be EPC E) decreased by about £5,000 to £9,000, relative to unaffected properties.
“If a similar situation were to arise in the context of higher Minimum Energy-Efficiency Standards (MEES), landlords may decide it is more profitable to improve properties and remain as landlords. However, landlords who face the highest costs may decide, on balance, it is still less costly to sell their property than comply with the higher energy performance standard.”
Pass costs onto tenants
The government adds some landlords may also decide instead to pass costs onto tenants through higher rents, but some tenants may decide to stay if higher rents are offset by lower energy bills.
The document says: “The degree to which landlords can pass costs through into rents is dependent on whether tenants are able and willing to pay higher rent levels. In 2023–24, just under a third of private renters (32%) reported finding it either fairly or very difficult to afford their rent.
“This, coupled with an expected slowdown in real wage growth and significant rises in rents in recent years, means there may be limited scope for tenants to pay higher rent levels and therefore for landlords to charge them.
“Under most options, tenants are expected to see a reduction in their energy bills due to higher energy performance standards.
“Tenants therefore, may be more willing to accept an increase in rents in exchange for lower energy bills. This is dependent on the level of costs passed through to rents as well as the tenant’s ability to accurately compare the trade-off between the rise in rents and expected energy savings.”
Changes to the way EPCs are measured
The government have also confirmed changes to the way EPCs are measured, replacing the existing single cost metric with four new headline metrics: energy cost, fabric performance, heating system and smart readiness.
The government claim this change will allow for a more comprehensive assessment of a building’s energy performance, however the government document admits there is uncertainty in how landlords will respond to the different metric options when presented to them.
The document says: “There is less uncertainty with the fabric-based elements of the scenarios, since these are likely to be closer to the final EPC metric than the smart or heat options. Because the smart and heat metrics are based around single measure installations (solar PV and heat pumps, respectively), the results are more polarised than if the metric had more compliance points.”
The document says: “Another uncertainty relates to the time between this analysis and the implementation of the regulations. Changes in the market’s appetite for certain measures could lead to greater numbers of installations under business as usual, which could reduce the marginal impact of these regulations.
“For instance, insulation is often installed alongside other measures when renovation works are being done; solar PV is being taken-up by households without the need for any government support at present; and heat pumps are likely to form the basis of much of the housing sector’s decarbonisation path, installation of which could gain momentum by the late 2020s.
The work required to increase energy performance standards may overlap with the work needed to meet the Decent Homes Standard. However, we still expect there to be significant demands for construction workers. This could push up wages, particularly for certain trade types, which in turn could increase the cost of MEES for landlords.”
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Member Since May 2024 - Comments: 204
4:27 PM, 23rd January 2026, About 3 months ago
I have to wonder how much of my tax money they have spent on this useless consultation.
Any landlord could have told them what would happen. If they had 2 brain cells they would have known this….
I’ve got all but 1 to a recent C, I have 1 house left that is a D, it will not economically make it to a C so I will have to sell it. It’s been offered to tenant to buy for the last few years but they can’t afford it and don’t want to move. I will let them know that it’s the government kicking them out and not me. I’m not spending 2-3 years income increasing it to a C and I’m sure they do not want to pay an extra 250 PCM to bring it to market rate so they can save a few pounds a month.
2 more coming up before 2030, both comfortable C’s but if they don’t make it, they will be sold.
Rest are good for 9 years. By then if I’m still alive, I’ll be nearly 70 so will start selling them off. There’s no point in paying both capital gains tax and inheritance tax.
Member Since February 2025 - Comments: 18
6:42 PM, 23rd January 2026, About 3 months ago
All very noble in principle, but where are the regulations govering tenant stupidity? have a large studio flat which I had fully insulated with 2 inch PIR backed plasterboard 5 years ago, and which has an EPC of C. My current tenant complained to me that the studio was costing him a fortune in electricity, so I went for a look. He had washing hung out everywhere to air dry, the windows tight shut, and the dehumidifier and bathroom extractor fan turned off. The room was so damp it was unbearable. I got him a hygrometer and I’m now paying for him to run the dehumidifier 16 hours a day. Any day it could’ve tipped over into a room full of black mold and I would’ve been held responsible. I’m selling up all my properties just as quick as I can. Thanks Labour, pity you dont know what you’re doing and don’t listen to advice from people who do.
Member Since December 2013 - Comments: 179
12:20 AM, 24th January 2026, About 3 months ago
Reply to the comment left by Martin at 23/01/2026 – 10:20
I am happy you managed to achieve the C by the skin of your teeth with a 69.
My concern now is:-
1) With changing assessment methodology coming up, would it achieve the C in the future?
2) Even if the methodology didn’t change, be prepared for the potential for points to slip by 1 or 2 next time. I have found this on 3 of mine last year, where nothing in the property had changed (including boiler) and it was the same quality assessor who did them previously.
He couldn’t explain why it had changed- the software wouldn’t tell him.
In two cases it dropped from a 74 to 71 so no issue. In one case it dropped from 70 to 68 and the registration body flatly refuses to manually alter it by 1 point (every other low cost measure is exhausted, next step solar- for 1 point!!)
Maybe those that are borderline need selling ?
Member Since June 2018 - Comments: 20
1:26 AM, 24th January 2026, About 3 months ago
Reply to the comment left by Saul Smart at 24/01/2026 – 00:20
Has Ed Milliband actually thought about what one point – the difference here between an EPC score of D and C – actually means in environmental performance terms? If this isn’t an obsessive madness, I don’t know what is.
Member Since January 2026 - Comments: 1
8:48 AM, 24th January 2026, About 3 months ago
I have 2 properties that are D, one is 4 points of a C. To achieve a C in this property will require external insulation at a cost of 10k to save £100 theoretically a year. It’s not a cold house and for the saving is it worth the risk of external insulation causing issues as has been in news recently.
The best method to achieve a C in both properties is with solar panels, but even then a new roof would be wise to do at same time. 10 yrs profits one property, 7 yrs in other!
Even Kier Starmers own property he rents out at present achieves D, his house is worth 2 million and would cost 15k to achieve a C, he hasn’t done that yet but I’m meant to do it on my 200k properties!
Even the tenants were open mouthed when I told them.
Member Since October 2023 - Comments: 36
11:03 AM, 24th January 2026, About 3 months ago
Reply to the comment left by Richard Dean at 24/01/2026 – 01:26
I’m sorry but there’s no hope with Ed Miliband in charge. This inept communist minister has no common sense. He’s out to destroy this country and it’s energy infrastructure. For me he’s public enemy number one and from a landlords position our only future hope is a change of government with common sense and business friendly views. So that rules out Liebour, Conservatives, Lib Dums and the Green party. Drill baby drill is my party of choice!
Member Since October 2024 - Comments: 6
10:18 AM, 26th January 2026, About 3 months ago
I’ve just sent a rent raise to a tenant. In it I have itemised all the compliance costs (licence, ombudsman, certificates, fire safety improvements etc and other factors , ULEZ etc etc and how this impacts on their rent. I will always do this in the future. If everyone did this the truth might come out as to why rents rise.
Member Since April 2018 - Comments: 374
10:26 AM, 26th January 2026, About 3 months ago
Reply to the comment left by susan sinclair at 26/01/2026 – 10:18
Do you think tenants care, they expect landlords to pay all those and more out of their massive profits!