Writing in the BuyAssociation, Eleanor Harvey states ‘The quality of properties on offer in the UK rental market is on the rise as landlords seek to get ahead of the market, with upcoming energy efficiency reforms set to have more of an impact‘ – a shift fuelled by landlord investment, changing preferences, and looming energy efficiency reforms.

A new report by Paragon, which draws on government housing data and interviews with landlords, reveals a notable transformation. Despite the UK’s reputation for having an older rental housing stock, landlords are increasingly bringing newer, higher-quality homes to market — and preparing existing ones for a greener future.

A Shift Towards Modernity

While many UK rental homes remain decades old, a steady stream of modern properties is entering the sector. Over the past ten years, the number of privately rented homes built after 1990 has surged by 42%, compared to a modest 3% rise among properties dating from 1919 to 1944.

This trend, the report suggests, is driven both by changing landlord behaviour and government policy. With tougher energy standards set to take effect by 2030, many landlords are proactively opting for homes that already meet higher environmental benchmarks — or can be easily upgraded.

Improving Standards Across the Sector

Despite headlines highlighting subpar housing, the overall quality of rental accommodation has improved significantly over the past two decades. According to the English Housing Condition Survey, 41% of privately rented homes were classed as “non-decent” in 2005. That figure has now almost halved to 21%.

Landlords have played a critical role in this change. The report credits both the acquisition of newer properties and targeted investment in older stock as key factors in this improvement.

Interestingly, landlords are split in their approach:

• 25% prefer buying move-in ready homes, often newer builds that are energy-efficient and require little to no renovation.

• 44% actively seek out properties in need of improvement, seeing an opportunity for value growth.

• 31% expressed no clear preference, choosing properties based on opportunity rather than condition.

Across all portfolios, landlords spend an average of £8,500 per year on property improvements — rising to £11,800 annually for landlords with 11 or more properties.

Greener Rentals, Gradually

Perhaps the clearest sign of progress is in energy performance. In 2013, just 21.7% of privately rented homes had an EPC rating of C. That number now stands at 45.1% — overtaking the once-dominant D-rated properties, which have dropped to 41.5%.

Top-rated A and B homes, many of them new builds, have risen from 1.3% to 3.3%, while the lowest E, F and G-rated homes have continued to decline, thanks in part to regulations that make these homes illegal to rent without exemption.

Looking ahead, landlords are bracing for further reform. From 2030, rental homes may need to meet a minimum EPC rating of C — a requirement that 83% of landlords already meet with at least one property. However, 73% still own at least one property that falls below the threshold, underscoring the work still to be done.

“Raising standards in the private rented sector isn’t just about new builds – it’s also about upgrading what’s already there. Landlords are responding to market pressure, regulation, and rising tenant expectations.”
— Paragon Report

As affordability, sustainability, and regulation reshape the rental landscape, one thing is clear: the bar is being raised — and landlords are adapting.