Landlords lose confidence in the EPC system as many plan to sell

Landlords lose confidence in the EPC system as many plan to sell

Energy efficiency rating chart on a dice with the word "SELL," symbolizing landlord concerns over EPC rules.
12:01 AM, 23rd September 2025, 7 months ago 21
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The energy performance certificate (EPC) system needs “practical reform, not political” as landlords lack confidence in the system, according to a new report.

All private rented homes will need to meet EPC C targets by 2030 and 2028 for new tenancies.

However, a report by Leaders Romans Group (LRG) reveals landlords have concerns over whether the EPC system is fit for purpose and whether it can deliver before the government’s strict timelines for energy-efficiency targets.

Lack of confidence in the EPC system

According to the report, while landlords support the principle of improving energy efficiency, landlords lack confidence in the EPC system.

The LRG report reveals only 16% of landlords say they are very confident in the current EPC ratings, and even fewer trust the advice provided within them.

More than one in five landlords admit they either don’t understand the EPC advice or are unsure whether it’s relevant.

Almost seven in ten landlords believe the EPC rules should consider the level of control they have over a property, particularly in leasehold flats and converted buildings, rather than applying uniformly across all property types.

Landlords considering selling as tenants pay no attention to EPCs

More than a quarter of landlords are also considering selling their property rather than upgrading it due to high costs. According to the National Residential Landlords Association (NRLA), landlords would need to spend an average of £6,100 to £6,800 per property to meet EPC C targets.

Many of these costs will be passed onto tenants, with a government minister last year admitting landlords can raise rents to pay for EPC upgrades.

Despite a push from tenant groups for higher EPC ratings, the reality is different. The LRG report reveals just one in four tenants said the EPC influenced their decision to rent a home.

A further third said they were aware of EPCs but paid no attention to them, while half of all tenants didn’t understand EPCs.

When asked if they’d be willing to pay more for an energy-efficient property, 67% of tenants said they’d rather keep the rent low. Only a third said they would accept a modest increase for better energy performance.

Current system isn’t just underperforming, it’s invisible to half the market

Allison Thompson, National Lettings Managing Director at LRG, commented, “Landlords aren’t resistant to energy improvements; many are already making them. However, EPCs in their current form don’t provide landlords with the confidence or clarity they need to act. The ratings often feel inconsistent, the advice is vague, and the cost of compliance remains unclear.

“We also need to bring tenants into the conversation. Currently, most renters are unfamiliar with EPCs or have never considered them. That tells us the current system isn’t just underperforming, it’s invisible to half the market.

“If EPCs are going to play a central role in decarbonising UK homes, we need practical reform, not just political. That means improving quality, incentivising investment, and rebuilding trust.”

The report also reveals although 42% of landlords say their rental homes already meet EPC C, a further third say they would only upgrade with financial support or not at all.

Support schemes are in place, including the Great British Insulation Scheme and the Warm Homes Grant, as well as zero-rated VAT on energy-saving materials until 2027.

However, these are often postcode- or eligibility-restricted and frequently undersubscribed, leaving many landlords uncertain and under-supported.


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Comments

  • Member Since May 2024 - Comments: 204

    1:21 AM, 23rd September 2025, About 7 months ago

    While trying to get all of my properties to an EPC C over the last year or 2, anytime I’ve mentioned EPC to a tenant, they had no idea what I was talking about and didn’t care what EPC rating their house had, they were just happy to have a house with reasonably low rent. Most are a C but 1 is still a high D

    When the government bring this in they are going to make a lot of people homeless.

    They obviously dont care about PRS tenants,

    The 1 house that I have that is still a EPC D will be sold and the tenant already knows it.

    She will be paying an extra £300 a month in rent to find a similar house if there are any available.

    I think that like Mick Roberts says, I’m now only hanging on to the houses for the tenants.

    When they leave, I’m selling the houses. Ill eitherinvest the money overseas or spend it all before I die and leave as little as possible for the government to tax.

  • Member Since December 2023 - Comments: 1575

    9:28 AM, 23rd September 2025, About 7 months ago

    I know some properties are rated C but similar properties, with the same attributes (and in some cases, better attributes) are rated D or E. It seems it helps to have a friendly EPC assessor in your armoury or lodge.

    That aside, the tax system could be used to encourage warmer homes. Reduce the tax rate for landlords with properties that are rated A or B; increase it for properties rated D or E and increase it again for properties rated F and G.

    As a basic rate taxpayer, faced with a tax rate choice of 15%, 20%, 25% or 30%, I’d focus a bit more on increasing the rating. I won’t be so enthusiastic about spending £15k in order to save the tenant £250 per year.

  • Member Since May 2014 - Comments: 88

    11:23 AM, 23rd September 2025, About 7 months ago

    I’ve got a pair of flats in Seaham, Co Durham – both one-bedders and rated D & E. They cost £51k for the pair a few year ago, both tenants have been there many years and are happy.

    To get them to a C will cost over £10k per flat (on top of the spend I’ve already incurred – eg new boilers). No way is that a justifiable capital investment, I’d be losing a lot of money. So I’ll have to sell them and evict both the happy tenants – they’ll have to move to other flats, probably having to be housed by the Council.

    No landlord will buy the flats so they’ll be lost to the PRS. £10k improvements are fine in a London flat worth £500k (2%) – but on mine the investment would be 40%.

    So we have unhappy evicted tenants, problem shifted to the council, PRS properties lost. And an unhappy landlord (the least of these issues tbf).

    How does all this help anyone??

  • Member Since December 2024 - Comments: 62

    7:32 PM, 23rd September 2025, About 7 months ago

    Reply to the comment left by Neil P at 23/09/2025 – 11:23
    Trouble is, we all go to the election booth to elect the people who govern us. Blue or red, it makes no difference. They are all pygmies.

  • Member Since September 2025 - Comments: 2

    8:33 PM, 23rd September 2025, About 7 months ago

    From my research it may be possible to avoid having EPC C.
    If tenants draft a letter to the council stating they do not wish for the EPC upgrades because let’s say of the upheaval and inconvenience then it becomes unnecessary for 5 years. After this or with a new tenant this would have to be repeated.
    In my cases I ve included heating in the rental package and sometimes all bills so my tenants have nothing to loose or gain but their homes.

  • Member Since November 2017 - Comments: 261

    8:55 PM, 23rd September 2025, About 7 months ago

    At some point, the EPC process will have to start taking into consideration the whole ‘carbon neutral’ aspect. It seems daft to me that 2 identical flats, one with Gas and the other all Electric can give a higher EPC to the Gas flat, based I am told on the cost of the energy.

    Then there’s the little matter of same flat different assessors equals different EPC band.

    Not forgetting that if your given say 4 suggested actions to improve your EPC, you must do them in the order listed by the Assessor. This is regardless of their effectiveness or cost. Had a studio flat that was 2 points below band C, 5 years ago, 2 suggested actions, install floor insulation, (solid concreate floors) and install inline water heater and remove the emersion and tank. Either would have moved the EPC to the next band up. One was some £3000, the other £150, ( I can play plumber). But the order they were given meant the floor first.

    Come the 5 year re-assess, I switched assessor and without any work got Band C for the next 10 years.

  • Member Since October 2016 - Comments: 18

    10:07 PM, 23rd September 2025, About 7 months ago

    I think this property being a D says it all about how inaccurately varied EPCs are.

    https://www.rightmove.co.uk/properties/164469149#/?channel=RES_BUY

  • Member Since September 2025 - Comments: 1

    8:46 AM, 24th September 2025, About 7 months ago

    Anybody who needs a new EPC will be shocked at the new rules. I have cavity wall insulation approx twelve years ago but have no paperwork anymore and the EPC assessor could only find proof if he drilled into the walls. Even thought I had double glazing in every window and door in the house it was rated poor because it was old. This meant that my house was rated E the lowest on the street.
    Trump might not get many things correct but all these green dictates are the biggest waste of money ever .
    My tenant has been in my property for 15 years paying a reasonable rent very happily will now have to move.
    I am unable to print his reaction to the ridiculous EPC ratings.

  • Member Since May 2023 - Comments: 2

    4:17 PM, 24th September 2025, About 7 months ago

    I lined all the external walls with a plasterboard and jablite sandwich years ago, when it was empty. The mould due to condensation was horrendous, due to low ventilation by tenants.
    It has just been sold, 14 years later, and there has been no mould in all that time, but when i got an epc done, he said, he wasnt allowed to take it into consideration, and gave me a d. Other flats in the same block have all been given a c. Mine was lower because its on one end. And then he advised cavity insulation to get a c, but its not possible on flats. Its a bloody farce.

  • Member Since September 2025 - Comments: 2

    5:51 AM, 25th September 2025, About 7 months ago

    An absolute farce. The EPC system has just changed so decided to review ten properties. Every one of them dropped. One property was 1 point away from C now 9 points. Getting it up to C is £10k plus, on a rent of £650 per month. Served section 21 to the tenant of 9 years.

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