EPC ratings face scepticism across the rental market

In LRG’s survey, 67% of tenants said they would rather keep rent low than pay more for an energy-efficient home.

Related topics:  Landlords,  EPC,  Tenants,  Energy Efficiency,  Rental Market
Property | Reporter
19th September 2025
Energy Efficiency 505
"EPCs in their current form don’t provide landlords with the confidence or clarity they need to act. The ratings often feel inconsistent, the advice is vague, and the cost of compliance remains unclear"
- Allison Thompson - LRG

New research from LRG highlights widespread doubts among both landlords and tenants about the Energy Performance Certificate (EPC) system, raising questions over its ability to support the government’s 2030 energy efficiency targets.

Landlords generally agree with the principle of improving energy performance, yet many lack faith in the system itself. Almost seven in ten landlords believe EPC requirements should reflect the level of control they hold over a property, such as in leasehold flats or converted buildings, rather than being applied uniformly. Despite this, only 16% say they are very confident in the ratings, with even fewer placing trust in the recommendations provided.

Concerns extend to understanding. More than one in five landlords admit they either do not grasp the advice or are unsure whether it is relevant. Among those whose properties fall short of compliance, over a quarter say they would consider selling rather than upgrading. The findings echo NRLA research indicating that 40% of landlords would leave the market if required upgrades reached £10,000 per property.

Although 42% of landlords responding to LRG say their properties already meet EPC C, a third indicate they would only carry out upgrades if financial assistance were available, or not at all. Support schemes such as the Great British Insulation Scheme, the Warm Homes Grant, and zero-rated VAT on energy-saving materials until 2027 are in place. However, these initiatives are often postcode- or eligibility-specific and remain undersubscribed, leaving many landlords feeling unsupported and cautious about the process.

Tenant engagement appears equally limited. In LRG’s survey, only one in four renters said the EPC influenced their decision to rent a property. A further third said they were aware of EPCs but paid no attention to them, while half admitted they did not understand them.

When asked about paying more for energy efficiency, 67% preferred to keep rent low, while just a third would accept a modest increase for a more efficient home. This contrasts with wider industry surveys showing that up to 80% of renters identify energy efficiency as a key factor when selecting a property, and 70% say it shapes their decision to renew a tenancy.

The government has restated its aim for all privately rented homes to reach EPC C by 2030, with new tenancies expected to comply from 2028. The consultation on minimum standards closed in May 2025. Although many anticipate a phased introduction, potentially extending to 2033 or 2035, the policy direction remains firm: energy efficiency is shifting from aspiration to requirement.

“All landlords aren’t resistant to energy improvements; many are already making them,” explained Allison Thompson, national lettings managing director at LRG. “However, EPCs in their current form don’t provide landlords with the confidence or clarity they need to act. The ratings often feel inconsistent, the advice is vague, and the cost of compliance remains unclear."

“We also need to bring tenants into the conversation. Currently, most renters are unfamiliar with EPCs or have never considered them. That tells us the current system isn’t just underperforming, it’s invisible to half the market.

“If EPCs are going to play a central role in decarbonising UK homes, we need practical reform, not just political. That means improving quality, incentivising investment, and rebuilding trust."

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