Upcoming energy efficiency standards are raising concerns across the UK property market, with experts warning of an “EPC time bomb” that could leave millions of rental homes non-compliant by 2030.
Currently, around 2.9 million privately rented properties in England are rated EPC D or below, meaning they would need upgrading to meet a proposed EPC C requirement. Government estimates place the average cost of these improvements at roughly £5,400, with a potential spending cap of up to £10,000 per property.
Many landlords operate on a small scale, often with only one or two properties, making them particularly vulnerable to rising compliance expenses. When combined with higher borrowing costs, licensing obligations and tightening regulations, the financial pressures on landlords continue to intensify.
Older properties, especially those dating back to the Victorian period or early 1900s, may require more extensive work to meet energy standards. This could include installing insulation, upgrading heating systems, improving glazing or incorporating renewable energy solutions.
Industry observers warn that these pressures could encourage some landlords to sell their properties, reducing the availability of rental housing.
Jason Harris-Cohen, Managing Director at LandlordBuyer, said: “We’re increasingly hearing from landlords who are concerned about how future EPC requirements will affect their properties. For many owners, particularly those with older homes, the cost of reaching an EPC C rating can be substantial and may simply not be financially viable.”
He added that for landlords who are considering exiting the rental market, or wanting to sell a house with tenants, it can be a practical solution that avoids unnecessary disruption for tenants.
“Many landlords assume that selling a rental property automatically means asking tenants to leave first, but that isn’t always the case. In reality, properties can be sold with tenants still living in them, which can help avoid evictions and maintain stability for renters.”
There is growing interest in services that purchase properties with tenants in place, offering a simpler route to sale without the delays or uncertainties of the traditional market.
Although energy efficiency reforms are designed to improve housing standards, the associated costs and scale of work required could lead some landlords to question whether remaining in the sector is financially sustainable.
