"What our analysis of EPC data really shows is the full scale of the challenge ahead for the home improvement and construction industries to support the government’s targets in meeting Net Zero by 2050"
- Beth Boulton - Eurocell
A new analysis of the energy efficiency performance of residential properties in England has found that if the UK government is to hit its Net Zero target, nearly one home needs energy performance-related upgrades every minute up to 2050.
To examine the scale of inefficient housing stock in England, home improvement specialists Eurocell analysed national Energy Performance Certificate data to understand the full extent of the task at hand in upgrading ageing housing to a minimum rating of C in line with government Net Zero targets.
According to the EPC data (data as of December 2024), there are currently estimated to be around 12,778,637 homes in England that have a rating of D or below that are likely to be eligible for upgrades that bring them in line with a C rating. It works out as almost one home every minute that requires energy performance-related upgrades, or 57 homes an hour.
Why an EPC rating of C?
The government has set a legally binding target to reduce the UK’s net emissions by 100% by 2050 compared with 1990 levels. This is known as the ‘net zero target’. As part of that target, the government is aiming for homes in England and Wales to have an EPC rating of no lower than C.
A property with an EPC rating of C will typically feature good insulation (loft, cavity walls, and floors), energy-efficient heating systems (modern gas boilers or heat pumps), and double or triple glazing to reduce heat loss. It might also include energy-efficient lighting, renewable energy systems, modern appliances and draught proofing.
“It’s no secret that England has an ageing housing stock across the entirety of the market, and it needs modernising to today’s energy efficiency standards," explained Beth Boulton, Marketing Director at Eurocell, "But what our analysis of EPC data really shows is the full scale of the challenge ahead for the home improvement and construction industries to support the government’s targets in meeting Net Zero by 2050.”
The private rental sector
The government has also set out specific targets for the private rental sector as part of its bid to reduce household energy costs. As of 2030, all private landlords will be required to meet a higher standard of EPC C or equivalent in their properties, up from the current level of EPC E. This includes social housing.
According to the latest data, there are 4.6M private renters in England and just over 4M in socially rented housing too. Birmingham, Leeds, and Cornwall have the most properties that need upgrading to a C EPC rating based on the data analysed.
Although there is a huge challenge ahead, there are many examples of local authorities across England that are aiming to drive up the performance of their housing stock, including;
West Midlands mayor Richard Parker has launched a £167m energy efficiency fund to upgrade up to 10,000 homes. The funding will be used to upgrade the “oldest and coldest” social and privately owned homes in the region, the West Midlands Combined Authority (WMCA) said.
Greater Manchester has developed a comprehensive energy plan across its 10 boroughs to achieve net zero by 2038, focusing on retrofitting existing homes to improve energy efficiency and reduce carbon emissions. Hammersmith & Fulham Council's Retrofit Program is aiming to retrofit its council homes to enhance energy efficiency.
However, these initiatives and the many other examples out there, combined, only scratch the surface.
Barriers to improvements remain, emphasising the importance of collaboration and innovative thinking
The latest data from the ONS on energy-related home improvements found that one in three adults still say cost is the reason why they don’t consider investing in efficiency upgrades. Beth believes the home improvement industry, government, local authorities, and market suppliers will need to come together to overcome the challenges ahead.
“As the data shows, we need a major collaborative effort to bring homes in England up to modern energy efficiency standards. Time will quickly tick away, and with it, the challenge will only get harder to bring UK housing stock in line with 2050 Net Zero targets.”
