Agents urged to take the lead over tougher landlord EPC rules
4 months ago | 2 comments
Tenants prioritise EPC ratings when choosing a home
12:01 AM, 16th December 2025, 4 months ago
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As tenants increasingly seek more energy-efficient homes, many landlords are choosing to sell properties with lower EPC ratings, according to a new report.
A report by Hillarys reveals a stark postcode divide and EPC upgrade challenge for landlords, with some property types costing nearly £1,400 more than others per year to heat.
As previously reported on Property118, almost two in five landlords (38%) intend to sell their property in the next year, (38%), with energy efficiency requirements cited more often than any other factor influencing their decision to sell.
Larger and detached properties may require greater retrofit investment
Hillarys warn lower EPC-rated properties may become more difficult to let, as 86% of renters are now prioritising energy efficiency when choosing a home, and more than half (52%) are willing to pay a 10% premium for a higher-rated property.
The retail company say lower-rated EPC properties expose tenants to higher energy costs, with an E-rated property (£1,942) costing 313% more per year to heat on average than an A-rated property (£470).
The findings reveal landlords will have to spend thousands of pounds on EPC improvements, as detached properties have the highest heating costs. In the UK, the majority of people live in houses (78%), which are the least energy-efficient and the most expensive property types to heat.
Detached properties are typically the most costly, with detached houses averaging £1,974 per year, more than triple the annual cost to heat an enclosed end-terrace flat (£574).
Hillarys warn larger and detached properties may require greater retrofit investment to remain competitive if tenants continue to choose homes based on running costs.
Small cost-effective measures can improve tenant appeal
Lisa Cooper, head of product at Hillarys, says landlords can take smaller, cost-effective measures that can improve tenant appeal while longer-term EPC work is underway.
She said: “Retaining heat by preventing air leakage at windows is key to ensuring bills stay low and properties warm. Small, cost-effective changes, such as sealing draughts, using thick curtains and ensuring windows are properly insulated, can all help.
“Another great solution to maintaining heat inside is installing thermal blinds, which have a unique honeycomb structure. This clever design traps air within its cells, providing an extra layer of insulation at your windows, reducing heat loss by up to 55%.”
In York, almost two-thirds of homes have an EPC rating of D or below
The study also reveals that more than half of the properties in the top 10 costliest areas to heat have an EPC rating of D or lower.
In York, almost two-thirds of homes have an EPC rating of D or below, and in Stoke-on-Trent, more than half (52.03%) fall into the same category.
Historic and coastal locations tend to have the highest energy costs, including York (£1,181), Dundee (£1,134) and Bath (£1,064), where older stone buildings and exposure to harsher weather conditions contribute to rising energy bills.
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Member Since December 2025 - Comments: 4
7:59 AM, 16th December 2025, About 4 months ago
This reflects a growing reality in the rental market. With energy costs still a major concern, it’s hardly surprising that tenants are paying more attention to EPC ratings, as they give a simple indication of likely running costs and comfort. For many renters, especially those on tighter budgets, energy efficiency is no longer a “nice to have” but a practical necessity.
That said, EPCs are only part of the picture. Awareness and understanding among tenants remains uneven, and the current EPC system does not always reflect real-world performance. If EPCs are to genuinely influence choice, they need to be clearer, more reliable, and backed by realistic support for landlords to improve their properties, rather than relying solely on market pressure.
Member Since June 2019 - Comments: 774
9:26 AM, 16th December 2025, About 4 months ago
Rubbish, nobody really cares about EPC if a property has a good EPC the rent is higher.
Location, transport, schools, floor area, garden and of course cost are all way more important. Who would rent an identical house for more money than the EPC could possibly save?
The government believes that there are only savings for tenants totally ignoring the actual impact on rents.
Member Since September 2018 - Comments: 3511 - Articles: 5
9:44 AM, 16th December 2025, About 4 months ago
hahahah – NO tenant has even looked at the EPC I provide!
Member Since September 2018 - Comments: 3511 - Articles: 5
9:49 AM, 16th December 2025, About 4 months ago
Reply to the comment left by Paul Essex at 16/12/2025 – 09:26
EPC shows average energy use and average saving, based on that average use.
I take meter reads at LL checks and can confirm 99% of my tenants don’t even achieve the average use figure – ergo they all save more than the EPC states.
(NB info also useful in the event of a claim made about damp and condensation and it being all the LL’s fault….)
Member Since May 2015 - Comments: 2193 - Articles: 2
9:56 AM, 16th December 2025, About 4 months ago
Reply to the comment left by Reluctant Landlord at 16/12/2025 – 09:44
My tenants cannot find their EPC, EICR or tenancy agreement. They come to me for a copy when an authority demands to see their tenancy agreement.
Member Since October 2013 - Comments: 1633 - Articles: 3
10:14 AM, 16th December 2025, About 4 months ago
EPCs are tied to our exorbitant and artificially high energy prices, which are caused by our ridiculous drive towards the impossibility which is net zero. Scrap net zero and we will see our energy prices drop significantly.
That said, as others have pointed out, EPCs are not property-specific, and when you’re one of 10 applicants for a rental, the EPC is bottom of the list of considerations.
It has always been… location, location, location… unless you’re selling curtains and blinds!
Member Since September 2018 - Comments: 3511 - Articles: 5
2:08 PM, 16th December 2025, About 4 months ago
Reply to the comment left by The_Maluka at 16/12/2025 – 09:56
of which you reply….it was all part of the stuff served to you at the start of the tenancy, which you signed for and is your responsibility to keep safe….
Member Since May 2015 - Comments: 2193 - Articles: 2
2:29 PM, 16th December 2025, About 4 months ago
Reply to the comment left by Reluctant Landlord at 16/12/2025 – 14:08
I take your point, but it is usually the DWP wanting proof of tenancy so that they can pay me the rent, so I oblige.
Member Since September 2018 - Comments: 3511 - Articles: 5
2:34 PM, 16th December 2025, About 4 months ago
Reply to the comment left by Dominic Bowkett at 16/12/2025 – 07:59
I don’t believe for one min that any tenant takes any notice of what the EPC states.
All they do if they are lucky enough to secure a tenancy is to switch to the lowest possible deal they can get and put the heating/water on, only as needed – keeping bills as low as they can.
I have tenants that have refused to put the electricity on to heat water in a tank that provides hot water to the sink/bathroom taps for years due to the cost. (property has no gas supply and separate electric shower giving instant hot water).
The ‘average’ consumption in an EPC rarely reflects actual consumption and the ‘average’ cost of energy (elec or gas) prediction is absolutely pointless.
The fact that a T can even secure a rental is far more important than what a pointless document states…..
Member Since March 2023 - Comments: 1506
4:51 PM, 16th December 2025, About 4 months ago
No they dont, who writes this rubbish