Landlords with lower-rated rental stock are heading into a sharper affordability squeeze for tenants after Rightmove said the July energy price cap rise could add as much as £591 a year to bills for the least efficient homes.
The portal’s latest analysis links the 13 percent cap increase from 1 July to a much wider gap between efficient and inefficient properties. Rightmove said a home with an EPC A rating could see annual bills rise by around £65, while a G-rated home could face a £591 jump.
For landlords, that is more than a tenant-cost story. Higher running costs can weaken demand, increase void risk and make EPC performance more commercially important even before any future tightening of minimum standards.
Bill pressure is becoming an investment issue
Rightmove said the average monthly energy bill for a three-bed semi-detached house with an EPC D rating is now about £182, or £2,182 a year, based on its latest tracker. The broad message is simple: as the price cap rises, lower-rated homes become harder to let at the same rent without a stronger location or other compensating advantage.
That matters because inefficient stock is still common. Rightmove and recent market analysis both point to a large share of homes sitting at D or below, leaving many landlords exposed if tenants become more selective on running costs.
This follows Landlord Knowledge’s report showing 55 percent of homes in England and Wales still rate D or below on EPCs. The latest bill jump gives that headline a harder commercial edge, because poor ratings now translate more visibly into tenant affordability pressure.
Tenant demand may keep shifting toward efficient homes
Rightmove said it recorded a 35 percent increase in demand for the highest-rated homes at the start of a recent period of geopolitical uncertainty, suggesting cost shocks are pushing energy efficiency higher up renters’ priorities. That does not mean every low-rated property becomes unlettable, but it does mean landlords may need to work harder on pricing and upgrades.
Landlords weighing improvement works can also see how this fits with the wider funding picture. Recent lender moves such as further-advance options for landlords carrying out upgrades show that finance products are increasingly being positioned around retrofit and efficiency spending.
The key warning for investors is that EPC performance is no longer just a compliance file item. Rightmove’s updated figures, available here, suggest it is becoming a direct part of rentability and tenant retention.
What this means for landlords
- If your property is EPC E, F or G: expect tenants to question running costs more aggressively after the July cap rise.
- Watch for: longer voids or softer pricing on inefficient homes where local competition includes better-rated stock.
- If you are refinancing or remortgaging: check whether upgrade funding can be bundled into wider borrowing plans.
- Bottom line: poor EPC ratings now carry a clearer rental-income risk as well as a compliance risk.
Editor’s view
Energy efficiency stories often get filed under future regulation, but this one is about tenant behaviour right now. When bills jump this hard, landlords with weaker EPC stock stop competing only on rent and start competing on running costs too.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 2 July 2026
Sources: Rightmove
Related reading: EPC data shows 55% of homes in England and Wales still rate D or below
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