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
The most in-demand holiday home destinations
Alicante is the ideal place in the sun when it comes to Brit foreign property dreams Province on Spain’s Eastern coast is the most popular destination for Brits in TV foreign property series Almeria and the Costa Del Sol are in the top three based on analysis of 1,000 episodes of A Place In The…
Read More 
Two Weeks to Go for First Phase of Renters’ Rights Act
With just two weeks until the first phase of the Renters’ Rights Act comes into effect, letting agents across England are being urged to ensure they are fully prepared for the significant operational and compliance changes ahead. From 1 May 2026, the new legislation will introduce wide-ranging reforms to tenancy structures, possession processes and rent…
Read More 
Housing Insight Report: February 2026
The housing market shows steady activity, ongoing challenges with sales agreed rising slightly and stock levels stable, while affordability pressures and longer transaction times continue to strain buyers and sellers. Demand is strong in the rental sector, with significant competition among tenants despite only a modest increase in available properties. Rents have remained relatively stable…
Read More 
London boasts biggest property market gap
UK’s property price gaps exposed: London tops with £838k difference between top and bottom of the market The latest research from eXp UK has revealed the scale of the price divide between the most and least expensive property markets across each region of the UK, with three areas seeing average house price gaps of more…
Read More 
Questions raised over tenant-agent trust gap
New research from Propoly has found that while over half of tenants describe their letting agent as professional, quick to respond to queries, and efficient in handling maintenance issues, issues still exist, particularly a widespread suspicion that agents are not working in the tenants’ favour. Propoly commissioned a survey of 1,000 UK tenants* to understand…
Read More 
29 is the age house sharing becomes ‘embarrassing’
but 11% still do it, according to new Nationwide research That equates to 27 million admitting they have felt embarrassed about their living situation With 69% saying living alone is unaffordable, it’s no surprise the average age of those in house shares is 35 From moving home (12%) to living with an ex (10%), as…
Read More