Soaring energy costs and ageing rental stock are fuelling calls for urgent EPC reform, with Citizens Advice warning that millions of private renters are rationing heat while the Government delays tougher efficiency rules. For buy-to-let investors, the pressure to upgrade to EPC C by 2030 is mounting, along with the risk of higher compliance costs.
Energy rationing in poorly insulated homes
Citizens Advice reports that 4.5 million private renters in England and Wales – around 41% of the sector – cut back on gas and electricity last winter to cope with bills still 50% above pre-2021 levels. One in three tenants struggled to keep warm, with some heating only a single room or skipping hot meals. “Many of the renters we help day-to-day say their landlords are hesitant to fix the substandard conditions they live in,” said Emily Wise, an energy adviser at Citizens Advice North Lancashire.
The charity estimates tenants in properties with the minimum E rating paid an extra £317 on energy last winter compared with a C-rated home. It argues that every year of delay on the Government’s promised minimum EPC C standard leaves renters – and their landlords – exposed to volatile energy prices.
Tension between upgrade costs and rental yields
Landlord groups accept the need for energy efficiency but warn that sudden deadlines could squeeze small investors. Ben Beadle, NRLA chief executive, has said that while energy-efficiency improvements are vital, landlords need financial support and realistic timelines to meet EPC targets. Many landlords already face steep refinancing costs and are wary of expensive retrofits, particularly in older coastal properties prone to damp and salt damage.
Financial advisers note that grants and low-interest green loans remain patchy. “Without proper incentives, upgrades can wipe out annual rental profits for years,” explained mortgage broker Karen Lewis, who specialises in eco-refurbishment finance. That concern is prompting some investors to sell rather than retrofit.
Renters fear reprisals over repair requests
Citizens Advice also found that nearly a third of tenants avoid asking for improvements because they fear eviction or rent hikes. Of those who did seek upgrades, 13% faced higher rent demands and 7% were refused outright. The charity is calling for robust enforcement of the forthcoming Renters’ Rights Bill to give tenants protection when requesting energy-saving repairs.
Editor’s view
The EPC debate highlights a tightrope: improving the UK’s leaky housing stock without driving more landlords from the market. Upgrading to EPC C will almost certainly lift property values and reduce bills, yet the capital outlay is daunting, especially for older homes and smaller portfolios.
