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

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.