A major new report warns that the majority of UK landlords remain unaware of critical energy efficiency laws set to reshape the private rental sector by 2030, leaving many at risk of non-compliance and sudden costs.
The Mortgage Works, a leading buy-to-let mortgage lender, revealed this week that 62% of landlords didn’t realise having an Energy Performance Certificate (EPC) is legally required, while only one in three knew that a minimum EPC rating of C is expected to be enforced in the coming years. With 73% unsure when those changes will apply, concerns are growing that widespread confusion could derail government efforts to decarbonise rental housing.
The lender’s research, based on a nationally representative poll of 1,000 landlords, suggests the government’s policy roll-out could falter without better education, financial support, and a more gradual implementation timeline.
Confused and underprepared
The survey highlights a widespread lack of clarity across the sector. Nearly two-thirds of landlords don’t know what it would cost to upgrade their properties to meet the proposed EPC standard. Of those who hazarded a guess, one in five said they’d likely need to spend around £6,632 per property.
Still, many are not sitting idle: “We found that 45% of landlords with properties rated D or below plan to upgrade their homes,” The Mortgage Works stated, “but a significant 28% are considering selling instead of improving.”
Worryingly, more than half (54%) of those planning upgrades said they were waiting for the government’s final decision before starting work. If landlords delay en masse, the sector could face bottlenecks for tradespeople and materials once any deadline is confirmed—potentially driving up costs even further.
“Grants, not guesswork”
While the government continues to consult on how best to implement minimum energy standards, landlords are asking for practical help, not just policy talk. Half of respondents said they would benefit from being directed to grants and financing options, while 55% wanted guidance on which improvements offer the best return for their money.
In addition, 38% of landlords plan to self-fund works using savings or current accounts, with 17% saying they’d consider applying for a further advance. However, over a third admitted they would need to raise rents to fund the necessary upgrades—either before the work begins or shortly after.
For many tenants, this could mean higher monthly costs just as household budgets are already under strain. But from a landlord’s perspective, the upgrades could be a long-term win. Better-rated properties attract more reliable tenants and may qualify for favourable mortgage rates.
A fairer approach
In its policy response, The Mortgage Works proposed a three-point plan to reduce the risk of sudden disruption:
- Longer lead-in times between when EPC reform is completed and when new laws come into force.
- Phased implementation, starting with the worst-performing homes (EPC E to D by 2030), then gradually moving all rentals to C by 2033 or later.
- A rethink of the proposed £15,000 cost cap for landlords, which the lender called “too high” and not reflective of the UK’s varied housing stock.
“There is no one-size-fits-all solution here,” the report argued. “The UK’s rental properties are extremely diverse, and regulation needs to take that into account.”
As landlords face an increasingly complex mix of environmental, financial, and legal pressures, clarity and realism are more essential than ever. The government’s well-meaning EPC targets risk becoming unworkable unless accompanied by clear timelines, tailored guidance, and meaningful financial incentives.
