"With around half of rental stock still below the target EPC threshold, the cost and complexity of upgrades are prompting many to rethink their portfolios."
- Mark Long - Pegasus Insight
Research from mortgage market specialist Pegasus Insight shows that proposed Energy Performance Certificate (EPC) regulations are now the main reason landlords plan to sell properties, reflecting the growing influence of energy policy on the private rented sector.
The latest Landlord Trends report (Q2 2025) finds that 38% of landlords intend to sell at least one property in the next 12 months. Energy efficiency requirements were cited more frequently than any other factor influencing sales decisions, a shift from previous studies where tax and interest rates were the main concerns.
The research also highlights the scale of the compliance challenge. Some 56% of landlords’ properties are rated ‘D’, while 20% fall into ‘E’, ‘F’, or ‘G’ categories. On average, 42% of a landlord’s portfolio does not currently meet the EPC ‘C’ standard. Larger landlords are particularly affected, with 78% of those owning 11 or more properties having, on average, 9.2 properties rated ‘D’ or below.
“Energy efficiency rules are now a decisive factor in landlords’ business decisions,” said Mark Long, founder and director at Pegasus Insight. “With around half of rental stock still below the target EPC threshold, the cost and complexity of upgrades are prompting many to rethink their portfolios."
“This is a pivotal moment for the sector: the ambition to improve energy standards is welcome, but without clearer guidance and practical support, there’s a real risk that good landlords will simply choose to exit the market rather than invest.”
The report also indicates that landlords’ confidence in future regulation remains low. Many highlighted uncertainty over the timing, scope, and cost implications of EPC and Minimum Energy Efficiency Standard (MEES) reforms.
