"Changes to Minimum Energy Efficiency Standards have been under discussion for some time, but our research shows limited landlord awareness with some looking to exit the market"
- Dan Clinton - The Mortgage Works
A widespread lack of awareness among landlords regarding energy efficiency standards could undermine the government’s drive to improve sustainability in the private rented sector, according to new research from The Mortgage Works.
A survey of 1,000 UK landlords found that 62% are unaware that an Energy Performance Certificate (EPC) is a legal requirement. Awareness of upcoming regulations is also limited, with only 33% correctly identifying that properties must reach a minimum EPC rating of C by 2030. Furthermore, 73% do not know when these regulations are due to come into effect, despite just five years remaining until the deadline for all rental properties in England and Wales.
Landlords are calling for greater clarity and support. The findings suggest many are unsure how to proceed and would welcome assistance in navigating the changes. “Having help to identify the most cost-effective improvements for their property would be valuable,” said over half of respondents (55%). “Help to understand the new energy efficiency requirements,” noted 53%, while 50% indicated they would benefit from information on available grants or financing options.
When asked about their plans, 45% of landlords with properties rated EPC-D or lower intend to make improvements to meet the new standards. However, 28% of all landlords say they plan to sell instead of upgrading their properties.
A delay in action appears common. Of those planning improvements, 54% are waiting until the government consultation ends or until legislation is passed before making any changes. This may create additional strain on the trades and materials supply chain if upgrades are rushed within a short timeframe.
Cost uncertainty is also a major factor. Around 63% of landlords are unsure how much they need to invest to achieve an EPC-C rating. Among those who have made estimates, 21% expect to spend up to £6,632 on average, depending on their property’s current energy rating and value.
These financial pressures are likely to affect tenants. According to 37% of landlords, rent increases will be necessary to cover upgrade costs, either before or during the renovation work. Still, 38% plan to fund improvements using current account or savings balances, while 17% are considering applying for a further advance.
Tenant disruption is another concern. Nearly 39% of landlords say they would offer a temporary rent reduction during works to compensate for the inconvenience. An equal proportion are aiming to phase works around tenancy changes, a strategy that depends on having sufficient lead time for implementation. Meanwhile, 17% say they will need to evict tenants in order to carry out the improvements, likely in cases where the work makes properties temporarily uninhabitable.
This raises questions about eviction rights post-Section 21 reform. There is concern that some landlords may not realise refurbishment remains a valid ground for eviction even once no-fault evictions are abolished.
The Mortgage Works has outlined three key priorities it believes are essential for the government’s energy efficiency goals to succeed:
A longer transition period between finalising EPC reform and enforcing new minimum standards, to allow landlords time to plan and act.
A phased rollout, starting with the least efficient properties, allows the retrofit sector to scale up. This could begin with EPC-E properties being brought to EPC-D by 2030, followed by further improvements to EPC-C by 2033 or later.
A review of the current national cost cap. The Mortgage Works opposes the proposed £15,000 cap and recommends a more flexible system that reflects the wide variation in UK housing stock and landlord circumstances.
“Changes to Minimum Energy Efficiency Standards have been under discussion for some time, but our research shows limited landlord awareness with some looking to exit the market,” explained Dan Clinton, head of buy-to-let at The Mortgage Works. “Policymakers should recognise the vital role landlords play in supporting economic growth through labour mobility and in providing homes to low-income households.
“Improving the energy efficiency of private rented homes is important, but the significant logistical and financial challenges of upgrading 2.5 million properties must be acknowledged. Striking the right balance between environmental progress and housing stability is crucial,” Clinton added. “To safeguard continued investment and protect tenants from higher rents or reduced supply, landlords need clear guidance, adequate support, and sufficient time to make their properties greener.”
