Landlord Upgrades to Improve Rental Energy Efficiency Slow After Policy Change

A recent survey found that 3/4 of UK landlords welcomed the government’s decision last fall to scrap a requirement for rental homes to reach an Energy Performance Certificate (EPC) rating of C by 2028. As a result, slightly fewer landlords now plan proactive efficiency upgrades if not legally mandated.

The survey highlighted a shift in landlord attitudes following the policy U-turn. Over 60% with lower-rated rentals still intend to eventually upgrade to C. But the share planning action as soon as possible dropped from 34% to 20%. Additionally, 25% will now only upgrade if required by future legislation, versus 13% previously.

Landlords cite the expense and difficulty of retrofitting older properties as the primary barrier to achieving a C EPC rating. However, 25% disagree with removing the rental housing efficiency targets, arguing landlords have a social and environmental duty to improve ratings.

As Landbay’s Rob Stanton commented: “We applaud the aim of upgrading rentals but must be realistic – much UK housing stock is old and costly to retrofit.” He noted that easier grant accessibility could motivate more voluntary landlord upgrades.

For now, the lack of a firm 2028 regulatory deadline gives landlords breathing room. With over 50% of rentals currently EPC grade D or lower, a high need remains to eventually enhance rental energy performance, costs, and emissions. But in the short term, upgrade activity is slowing following the policy change.