A new report from Rightmove reveals the scale of the challenge in improving the energy efficiency of homes in Great Britain. According to their data, approximately 2.9 million homes need upgrades to achieve an EPC rating of C, at a total cost of £23.4 billion, equating to £8,074 per property for landlords. This move aligns with the government’s proposed minimum EPC requirements for rental properties by 2030, which had been previously shelved but is now under reconsideration.

The report indicates that landlords, especially those with lower-value properties, may struggle with the financial burden of making these upgrades. This could lead to a reduction in rental supply, as some landlords may opt to sell their properties rather than invest in improvements. Notably, 18% of properties for sale in August 2023 were previously rental properties, marking the highest percentage on record since 2010.

The data highlights disparities between different property values. Higher-value homes (over £1 million) are being upgraded at a faster pace, with 50% of these properties improving their EPC rating compared to 32% of homes valued under £400,000.

Additionally, 92% of renters and 87% of homeowners view energy efficiency as crucial due to rising energy costs. Rightmove’s Energy Bills Tracker shows significant savings between homes with better energy ratings. For example, the average energy bill for a three-bedroom house with an EPC rating of F is £4,312 per year, while for a home with a rating of C, the cost is £1,681 — a difference of £2,631 annually.

There is growing support for government intervention, including ideas like stamp duty rebates for green upgrades, green mortgages, and allowing landlords to offset improvement costs against income tax. Labour’s proposed £6.6 billion Warmer Homes plan, which focuses on insulation and low-carbon heating, reflects growing interest in supporting energy efficiency improvements across the housing market​(Nationwide House Price Index) .