1.8 Million Rental Homes Still Below The Energy Rating 2028 Target, LandlordBuyer Finds
June 18, 2025
New analysis by property acquisition specialists LandlordBuyer reveals that over 1.8 million privately rented homes in England still fall short of the government’s proposed minimum energy efficiency standard of EPC rating C, with just three years to go before the 2028 compliance deadline.
Using the latest data from the MHCLG and EPC Register, LandlordBuyer found that as of Q2 2025, only 42.3% of privately rented homes in England currently meet EPC band C or above, while 1.82 million rental properties remain rated D or below, many requiring significant retrofit works to comply. The average cost of upgrading a D-rated property to C is estimated between £7,400 and £10,000, depending on property type and region.
LandlordBuyer’s research highlights stark regional variations in EPC readiness. In London, 56.1% of private rented homes are rated C or above, with 310,000 estimated to be below C. This is significantly higher than other areas of the UK, with the south west at 37% and 210,000 respectively. In the north the figures are even worse, with 33.9% of North West properties rated C+, and 290,000 estimated to be below C. In Yorkshire and the Humber the figures are 32.8% and 265,000 respectively.
With the average private landlord owning 1.4 rental properties, the cumulative cost of meeting the EPC target could exceed £15 billion nationally, prompting concern about affordability and potential knock-on effects for tenants.
Jason Harris-Cohen, Managing Director at LandlordBuyer said: “With just three years to meet the government’s EPC band C target, over 1.8 million privately rented homes still fall short of the required energy efficiency standard. This represents a significant retrofit challenge for landlords, many of whom face difficult decisions between absorbing costly upgrade expenses, raising rents, or exiting the market altogether.
“The regional disparities in compliance also highlight the need for targeted support and clear government enforcement timelines. Without urgent action and financial incentives, both landlords and tenants risk being caught in a difficult position – landlords struggling with affordability and tenants facing higher energy bills.
“LandlordBuyer are committed to helping landlords navigate this evolving landscape by offering fast, chain-free sales options, enabling smarter investment and exit strategies in a rapidly changing market.”
In parallel, tenants in lower-rated homes typically face higher energy bills, with recent estimates suggesting those in EPC D-rated homes could pay £420 more per year compared to EPC C-rated equivalents.
Despite strong policy signals, the government has yet to finalise the legislative timetable for enforcement. LandlordBuyer is calling for clearer timelines from DLUHC on EPC legislation enforcement, financial incentives or grants to support retrofit works and local authority partnerships to identify at-risk stock and guide landlords.
You May Also Enjoy
First-time buyer demand edges higher in Q4
The latest research by Yopa has revealed that first-time buyers are beginning to return to the market, encouraged by stabilising interest rates and the base rate cut seen in December, with demand edging higher during the final quarter of the year. Yopa analysed first-time buyer (FTB) demand based on the proportion of homes listed under…
Read More 
Rental price and average salary tracker – December 2025
Seasonal slowdown brings month-on-month rent falls, while affordability pressures remain entrenched Year-on-year trends continue to show only modest movement, with the income required to rent remaining broadly stable across most regions, reinforcing the long-term affordability challenge facing tenants. The most notable shifts in the market are now happening month-on-month, with several regions experiencing sharp short-term…
Read More 
Expectations are high for a booming mortgage market
Moneyfacts UK Mortgage Trends Treasury Report data reveals the falls in mortgage rates during 2025, along with product choice growth, sets a positive stage for the market in 2026. Product choice overall rose month-on-month, to 7,158 options, where year-on-year, there are now 650 more deals available to borrowers. The latest count is the highest since…
Read More 
Homebuyers benefit as 37% of homes see price cut
January sales bring bargain opportunities for homebuyers, but window is already narrowing as market strengthens The latest research by Benham and Reeves has shown that 37% of homes currently listed for sale across England have seen an asking price reduction, meaning homebuyers entering the market this January have a strong chance of securing a bargain.…
Read More 
Home sellers hit the ground running in 2026
The latest market analysis from GetAgent.co.uk shows that momentum is already starting to build in 2026, as sellers are returning to the market at mass, keen to make their move now that Autumn Budget uncertainty is behind us and buyer confidence has been buoyed by a December base rate reduction. GetAgent analysed current for-sale listings…
Read More 
Why 2026 is the Best Year to Invest in Dominican Republic Land
If you’re eyeing Caribbean real estate, 2026 offers an exceptional window to invest in Dominican Republic land. The country has emerged as the fastest-growing Caribbean economy, creating ideal conditions for land investors. Tax incentives, infrastructure projects, and rising international interest are converging at just the right moment. Whether you’re searching for beach land for sale…
Read More