4 weeks ago | 13 comments
Despite buyers prioritising EPC ratings, homeowners are struggling to afford EPC upgrades, according to new research.
Data from Together reveals that three in four (74%) buyers would be willing to pay more for a home with a better EPC rating, with buyers prepared to spend an average of £5,293 more for a property with improved energy efficiency.
However, despite growing demand for energy-efficient homes, the cost of EPC improvements remains a major barrier.
Half of homeowners (50%) say the cost of upgrades is the biggest obstacle to improving their home’s EPC rating, while 34% are actively considering EPC upgrades but simply cannot afford them.
According to the data, nearly three-quarters (73%) are concerned that homes with poor energy efficiency will become increasingly difficult to sell over the next five years.
Nearly two-thirds (63%) say they’d be more likely to make energy-efficiency improvements to their home if affordable finance were available.
Ryan Etchells, chief commercial officer at Together, said homeowners could benefit from financing options that help spread the cost of upgrades.
He said: “Rising energy bills have put pressure on all homeowners’ pockets over the past few years. Savvy buyers are now thinking beyond the purchase price of a property, ensuring they’re aware of what a home will cost to run every month.
“Energy efficiency is a key part of affordability, so homes with lower running costs are becoming more attractive. While owners of less efficient properties may need to invest more upfront to save money in the long run, the benefits of home improvements can counter the costs.
“As many homeowners recognise the benefits of improving energy efficiency, finding ways to spread costs through bridging or second charge loans can help homeowners make the improvements they need whilst also increasing their property’s value and appeal.”
The data also reveals the Isles of Scilly have the lowest proportion of energy-efficient homes, with just 12.42% of properties achieving a Band ‘C’ or above. This is followed by Gwynedd in Wales (27.79%), Ceredigion (31.51%), and Staffordshire Moorlands (31.66%).
London dominates the top spots, with Tower Hamlets having the highest proportion of energy-efficient homes, as 82.21% achieve an EPC Band ‘C’ or above. This is followed by Knowsley (74.40%) and Salford (71.18%).
The news comes as the government has proposed all PRS properties will need to meet EPC C targets by 2030.
6 comments on this article
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Member Since August 2024 - Comments: 42
7:30 AM, 23rd September 2026, About 3 weeks ago
The problem with current epc ratings system is they do NOT reflect the actual level across different house types.
I had three houses rated within 2 weeks with the same person/ company.
Two semi and one detached of different sizes and types, one a bungalow, one a two storey semi and a detached dormer house.
The bungalow got rated D, needs underfloor insulation, solar panels etc. The semi got a C, needs underfloor insulation, solar panels etc..The detached also got a C, and barely, it needs a windmill !
The detached has solar pv, solar thermal, underfloor heating, fully insulated, individual room heating controls, the lot basically.
The reason for this “discrepancy ” was the sizes of the houses..the detached was too big !!!
So they want everyone in rabbit hutches with small windows in order to get A ratings….oh, that’s what they build now isn’t it !!
Member Since September 2025 - Comments: 43
10:24 AM, 23rd September 2026, About 3 weeks ago
The epc on one of my properties was c 13 years ago …..same tenant so don’t need to update it ….. but I guess when the landlord database comes in I will have to update it ….. and I guess it’ll be downgraded. I make £9000 a year before tax from that property ….. so must I spend over a year’s income to upgrade it? It’s a nonsense. I shall sell
Member Since October 2013 - Comments: 1753 - Articles: 3
4:53 PM, 23rd September 2026, About 3 weeks ago
I have never yet had someone question the EPC on any residential home I’ve sold. Equally, I’ve never asked about houses I’ve wanted to buy. If it’s not for rental, and it’s clearly not got wind rattling through the windows, it really doesn’t matter if it’s the right house. If work’s needed; new windows, insulation, electrics, boiler… it gets factored into the price offered post-survey.
Member Since September 2026 - Comments: 5
10:37 PM, 26th September 2026, About 3 weeks ago
Reply to the comment left by Jan Hall at 23/09/2026 – 10:24
The fact that the EPC is 13 years old doesn’t necessarily mean the property would be downgraded when it is reassessed. There have certainly been changes to the methodology over that period, but those changes don’t automatically mean that an unchanged property receives a lower rating.
If the property were reassessed today, the current methodology would be applied to the property’s actual characteristics and the evidence available. If it produced a significantly different rating from the old EPC, I’d be interested in looking at the detailed assessment data to establish why, rather than simply assuming that the methodology change was responsible. It is also worth remembering that a difference between two EPCs isn’t necessarily caused by a change in methodology — the earlier EPC may not have been entirely accurate in the first place.
I’d also be very wary of assuming that you need to spend a year’s rental income on improvements until you’ve established what the property actually requires. A decent assessor should be able to model potential improvements and show what effect they are likely to have before you spend the money.
Also, if you’re referring to the proposed £10,000 MEES cost cap, it doesn’t mean that you have to spend £10,000, or even that you have to spend anything approaching that amount. If the required standard can be achieved for considerably less, then that’s all you would need to spend. It may therefore be worth finding out what the property actually needs before assuming you’re facing a £9,000 or £10,000 bill.
Assuming you’re in England or Wales, there’s also a potentially useful point to consider. If the property were reassessed and achieved an EER C under the current EPC system, an EPC lodged before 1 October 2029 is proposed to be recognised as compliant with the tighter PRS MEES standard until that EPC expires. As EPCs are currently valid for 10 years, an EPC obtained sufficiently close to that date could potentially give you several years of breathing space before the new requirements have to be met.
Member Since September 2026 - Comments: 5
10:38 PM, 26th September 2026, About 3 weeks ago
Reply to the comment left by Imout Ofhere at 23/09/2026 – 07:30
The point about the size of the detached house is interesting, but I don’t think it’s quite as simple as the larger property being “penalised” for being bigger.
The EPC methodology models the energy use of the dwelling in relation to its floor area, so the rating is effectively normalised for floor area. A larger house doesn’t automatically get a worse rating simply because it has more square metres. There are obviously other factors in the calculation, including the geometry of the dwelling, but floor area itself isn’t simply a penalty.
I’d actually be more interested in comparing the heating systems and the construction of the walls in the three properties. Those can have a significant effect on the calculated performance, and two properties that look broadly similar externally can produce quite different EPC ratings depending on the heating system and the way their construction is recorded.
The “windmill” recommendation is also interesting. If by windmill you mean a small wind turbine, that recommendation is associated with properties recorded as being in a rural terrain category. So its appearance on the EPC doesn’t necessarily mean the assessor thought the detached house needed a wind turbine because it was particularly energy inefficient.
I’d therefore be cautious about concluding from those three ratings that the methodology is trying to encourage people to live in “rabbit hutches”. There are some fairly specific reasons why the methodology can produce results which aren’t immediately intuitive from looking at the properties themselves.
Member Since November 2024 - Comments: 8
10:49 PM, 26th September 2026, About 3 weeks ago
Reply to the comment left by Imout Ofhere at 23/09/2026 – 07:30
The point about the size of the detached house is interesting, but I don’t think it’s quite as simple as the larger property being “penalised” for being bigger.
The EPC methodology models the energy use of the dwelling in relation to its floor area, so the rating is effectively normalised for floor area. A larger house doesn’t automatically get a worse rating simply because it has more square metres. There are obviously other factors in the calculation, including the geometry of the dwelling, but floor area itself isn’t simply a penalty.
I’d actually be more interested in comparing the heating systems and the construction of the walls in the three properties. Those can have a significant effect on the calculated performance, and two properties that look broadly similar externally can produce quite different EPC ratings depending on the heating system and the way their construction is recorded.
The “windmill” recommendation is also interesting. If by windmill you mean a small wind turbine, that recommendation is associated with properties recorded as being in a rural terrain category. So its appearance on the EPC doesn’t necessarily mean the assessor thought the detached house needed a wind turbine because it was particularly energy inefficient.
I’d therefore be cautious about concluding from those three ratings that the methodology is trying to encourage people to live in “rabbit hutches”. There are some fairly specific reasons why the methodology can produce results which aren’t immediately intuitive from looking at the properties themselves.