"Without urgent action and financial incentives, both landlords and tenants risk being caught in a difficult position, with landlords struggling with affordability and tenants facing higher energy bills"
- Jason Harris-Cohen - LandlordBuyer
More than 1.8 million privately rented homes in England remain below the government's proposed minimum energy efficiency standard of EPC band C, according to new analysis by property acquisition firm LandlordBuyer. The data highlights the scale of the retrofit challenge facing landlords ahead of the anticipated 2028 compliance deadline.
Drawing on the latest figures from the Ministry of Housing, Communities and Local Government (MHCLG) and the EPC Register, LandlordBuyer reports that just 42.3% of privately rented homes in England currently achieve an EPC rating of C or above. As of Q2 2025, 1.82 million rental properties are still rated D or lower, with many requiring substantial improvements. Estimates suggest the average cost to upgrade a D-rated home to C is between £7,400 and £10,000, depending on region and property type.
The analysis also reveals marked regional disparities. In London, 56.1% of private rented homes meet the C threshold, but around 310,000 remain below standard. In contrast, the south west reports just 37% compliance, with 210,000 homes below band C. In the north of England, the situation is more acute.
In the North West, 33.9% of homes are C-rated or higher, leaving around 290,000 below target. In Yorkshire and the Humber, only 32.8% meet the standard, with 265,000 homes falling short.
Given that the average private landlord owns 1.4 properties, the cumulative cost of meeting the 2028 EPC requirement could exceed £15 billion across the sector. This has raised concerns about the financial burden on landlords and possible implications for tenants.
“With just three years to meet the government’s EPC band C target, over 1.8 million privately rented homes still fall short of the required energy efficiency standard,” said Jason Harris-Cohen, managing director at LandlordBuyer. “This represents a significant retrofit challenge for landlords, many of whom face difficult decisions between absorbing costly upgrade expenses, raising rents, or exiting the market altogether.”
Harris-Cohen continued: “The regional disparities in compliance also highlight the need for targeted support and clear government enforcement timelines. Without urgent action and financial incentives, both landlords and tenants risk being caught in a difficult position, with landlords struggling with affordability and tenants facing higher energy bills.
“LandlordBuyer is committed to helping landlords navigate this evolving landscape by offering fast, chain-free sales options, enabling smarter investment and exit strategies in a rapidly changing market.”
The impact of lower EPC ratings extends to tenants. Households in EPC D-rated homes can expect to pay an estimated £420 more per year in energy costs compared to those in EPC C-rated properties.
While the government has signalled its intention to enforce the new minimum standard, a firm legislative timetable has yet to be confirmed. In response, LandlordBuyer is calling for clearer guidance from the Department for Levelling Up, Housing and Communities (DLUHC), including financial incentives for retrofit works, timelines for enforcement, and collaboration with local authorities to identify vulnerable stock and assist landlords with compliance.
