The latest epIMS analysis highlights a significant knowledge gap among landlords regarding upcoming EPC requirements:

• 40% of landlords are unaware that an EPC rating of C will soon become the minimum legal standard for private rentals.
• 27% of landlords do not know the current EPC rating of their properties.

With the 2028 deadline for new tenancies and 2030 for all tenancies, this lack of awareness could lead to compliance issues, rushed upgrades, and financial strain for landlords.

The Scale of the Challenge

• 2.58 million private rental homes in England and Wales require upgrades to meet the EPC C requirement.
• Government consultation proposes new tenancies must meet C Rating by 2028, with all tenancies required to comply by 2030.
• Estimated upgrade cost: £8,000 per property, totalling £19.8 billion for landlords across England.
• London landlords face higher costs—£9,000 per property, with a total estimated bill of £4.7 billion.

Impact on Landlords

• The average landlord (with 8 properties) may need to invest £64,000 over the next five years.
• Concerns of landlords exiting the market, potentially worsening the rental crisis.
• Many landlords may not realise small improvements could be enough to reach an EPC C rating.

Landlord Awareness & Readiness

• 40% of landlords unaware of the government’s EPC consultation.
• 42% unaware of the upcoming EPC C standard requirement.
• 27% unsure of their properties’ current EPC rating.
• 32% do not understand how EPC ratings are calculated.
• 65% do not know how many points are needed to achieve a C rating.
• 75% plan to wait until 2030 before making upgrades, citing cost and lack of clarity as key challenges.

Potential Energy Bill Savings

Upgrading an EPC rating could significantly cut tenant energy bills:

• D to C: 29% reduction (£717/year).
• E to C: 48% reduction (£1,685/year).
• F to C: 61% reduction (£2,838/year).
• G to C: 70% reduction (£4,240/year).
• Total potential savings: £21,000 over five years for the most inefficient properties.

Key Takeaways

• The financial burden of upgrades is a major concern, potentially driving landlords out of the market.
• Lack of awareness and confusion over EPC calculations could delay action.
• Government incentives or clearer guidance could encourage earlier upgrades.
• The long-term savings for tenants highlight the benefits of energy efficiency.