As the UK edges closer to its 2028 and 2030 energy efficiency deadlines, landlords are once again in the spotlight — this time over claims they can “easily afford” costly EPC upgrades. Campaign group Generation Rent argues that because many landlords are mortgage-free, retrofitting properties to reach EPC C by the proposed dates shouldn’t be an issue. But landlords say this paints an unrealistic picture — one that ignores rising interest rates, uneven property stock, and the sheer expense of compliance.
Generation Rent’s comments follow the Government’s recommitment to raising minimum EPC standards in the private rented sector, tied to its £13.2 billion Warm Homes Plan. The tenant lobby supports the move and wants limits on rent rises to ensure savings aren’t wiped out. Landlords, meanwhile, are urging ministers to deliver practical support rather than political slogans.
Cost cap stirs exit fears
The draft regulations propose a £15,000 per-property spending cap, although the Government’s own estimate of the typical outlay is £6,100–£6,800. Energy-data specialists warn that a landlord with eight properties could face a £64,000 bill, prompting concern that mandatory EPC C requirements could push more landlords to exit the market, further straining rental supply.
Industry bodies echo that anxiety. Propertymark says the £15k ceiling would likely “push many landlords out of the market” and urges a lower figure alongside targeted grant funding. Head of policy Timothy Douglas commented: “Propertymark wants to see more energy-efficient homes, but the targets must be realistic and achievable.” Likewise, NRLA chief Ben Beadle has argued: “We all want to see rented homes as energy efficient as possible, but that will require a realistic plan… and a targeted financial package to support investments in the work required.”
Is the ‘mortgage-free majority’ a myth?
Official statistics challenge Generation Rent’s claims. The latest English Private Landlord Survey shows that only 41 per cent of landlords are mortgage-free—meaning most still carry debt on at least part of their portfolio. That distinction matters, particularly in a high-interest climate where refinancing costs have ballooned and landlords’ profit margins are under pressure.
Gloucestershire landlord Tom Evans, who rents out two pre-1919 stone cottages, explained: “I’m not against insulation, but I’ve just remortgaged at 6.2 per cent. If I have to find another ten grand per house on top, something has to give—either the rent goes up or the property goes on the market.” His view reflects a broader reality: many landlords, especially those with older properties, face steep upgrade bills with limited support and rising borrowing costs.
Landlords lobby for carrots, not sticks
Stakeholders across the sector are calling for incentives rather than punishments. Propertymark recommends a unified 2030 deadline for all tenancies and a 10-year exemption where upgrades still exceed the spending cap. The NRLA, meanwhile, is pressing the Treasury to introduce VAT relief on retrofit materials and a zero-interest “green loan” scheme to support landlords in delivering energy efficiency without financial strain.
Whether policymakers will accommodate these requests is unclear. The consultation on the EPC changes runs until 27 August 2025. For now, landlords must navigate uncertainty and weigh their options carefully—especially those in areas where rents don’t easily cover extensive upgrade costs.
Most landlords want to improve their properties, but unaffordable rules will only lead to fewer rental homes. As the government pushes ahead with its net zero ambitions, the question is no longer whether landlords can afford to comply—but whether the country can afford to lose them if they don’t.
