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.
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