The cost of EPCs and minimal returns?
by Ian Narbeth
I have just obtained an EPC C rating for a small (75 sqm) three-bedroom pre-war semi-detached house in a London borough.
It scraped a 70C score, and the certificate gives a potential score of 79, which is 2 points below a B rating.
The steps I could take “to save energy” are set out below, with the addition of my calculation of the percentage returns on my investment if I chose to make it.
Ignoring the solar panels, I could save £141 per year if I completed the suggested steps for improving this property’s energy rating.
£12,500 to £21,000 to save £141, a return of 0.671% to 1.128%.
These figures assume that the “typical insulation cost” is realistic. Internal insulation will make a modestly sized house even smaller.
Would Rayner, Pennycook or Miliband recommend that a landlord carry out any of these “improvements” to save a possible £7 a week?
| Item | Typical installation cost | Typical yearly saving | Maximum return | Minimum return |
| 1. Internal wall insulation | £7,500 – £11,000 | £97 | 1.293% | 0.882% |
| 2. Floor insulation (suspended floor) | £5,000 – £10,000 | £44 | 0.880% | 0.440% |
| 3. Solar photovoltaic panels | £8,000 – £10,000 | £214 | 2.675% | 2.140% |
| Total | £20,500 – £31,000 | £355 | 1.732% | 1.145% |
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
Member Since September 2018 - Comments: 3535 - Articles: 5
10:26 AM, 29th August 2025, About 8 months ago
Not about them – ask the tenant.
Explain that to apparently ‘save’ them £7 a week (ONLY if the house is run at at is ‘average’ energy consumption as per EPC) it will cost them X increase in the rent.
As the rent increase will cancel out any ‘savings’ – you got your 5 year exemption right there. They will happily sign a letter to say they refuse access for the work to take place.
Sorted.
Member Since June 2019 - Comments: 781
10:27 AM, 29th August 2025, About 8 months ago
Missing the obvious point that the landlord never saves money as these benefits go direct to the tenants. Big rent increases, far in excess of the savings are required for you to cover these costs.
Member Since August 2019 - Comments: 66
10:46 AM, 29th August 2025, About 8 months ago
To be fair if it’s achieved a C rating they wouldn’t expect you to take any action. Personally I’d like to see some fiscal encouragement from the government rather than the current disincentives – improvements treated as capital expenditure and the interest on borrowing not treated as a business expense.
Member Since January 2022 - Comments: 97
2:55 PM, 29th August 2025, About 8 months ago
They should pause any Private rental EPC changes and look to the social and council house improvements, get them ALL up to F and then we will talk. Anything else is a pathetic joke
Member Since April 2022 - Comments: 132
11:36 AM, 30th August 2025, About 8 months ago
Every epc I have ever had seems to give similarly pointless returns on investment. Many suggestions have also been based upon incorrect assumptions.
I despair at the stupidity of pretty much everything in the PRS these days.
Member Since January 2022 - Comments: 97
7:34 PM, 30th August 2025, About 8 months ago
3 of the flats I own are built to a higher standard than the regulations back when they were built, the EPC only uses base line. 2 of them are ground floor flats, yet solar panels get chucked on the suggestion to put on a roof I do not own lol
Member Since December 2023 - Comments: 1586
8:07 AM, 31st August 2025, About 8 months ago
It’s not about making tenants’ homes warmer.
It’s all about reducing energy use so that the national grid can cope with the millions of new houses needed to house a rapidly growing population.
Member Since October 2022 - Comments: 3
12:09 PM, 31st August 2025, About 8 months ago
Government has moved the goalposts. By lusting for Heat pumps, solar panels et al, they have distorted the criteria for a given certification. I have ‘C’ certification on 3 mid-terrace properties but can no longer achieve that on literally identical ones. It is worse, given the unchallengeable authority of the licence issuers, their supervisory Body explicitly relieving itself of any responsibility for whatever EPC is given and which is on a 10 year record unless you can get it overwritten. I can also evidence an assessor withdrawing interest when I showed him that his suggested likely EPC was plainly countermanded by my long-term record of energy costs for the property.
Member Since May 2025 - Comments: 75
3:15 PM, 5th September 2025, About 8 months ago
I wrote a blog about this back in Feb.
https://think-we-are-stupid.blogspot.com/2025/02/ofgem-vs-epcs-fight-is-on.html
Basically the government have a vested interest in increasing the energy price cap – they get more VAT and green levy tax. Similarly plugging heat pumps means they get 16% green levy tax from electric heating versus 6% for gas.
It makes zero sense for landlords to invest the money without any capital relief or allowances. Even then it’s a terrible business case so it’s highly questionable.
https://think-we-are-stupid.blogspot.com/2025/02/energy-performance-of-privately-rent.html
I fully agree that councils and social housing need to at least get to an E (without buying fake EPCs).
Member Since January 2022 - Comments: 97
6:20 PM, 6th September 2025, About 8 months ago
Reply to the comment left by Suspicious Steve at 05/09/2025 – 15:15
Sorry “without buying fake EPCs”???
Do you mean the clowcils and social housing ass would stoop so low… as if 😉