The government’s latest push to improve energy efficiency standards in the private rented sector is creating growing uncertainty for landlords across the UK. New research from Goodlord suggests that a significant number of property owners are now considering selling homes or reducing the size of their portfolios because of the proposed EPC C requirements.
The findings follow the recent King’s Speech, where the government confirmed plans for an Energy Independence Bill as part of its wider strategy to improve energy efficiency and support net zero targets. Alongside this announcement, ministers also confirmed that all privately rented properties will need to achieve a minimum EPC rating of C by 2030.
While many landlords agree with the long-term goal of improving housing standards and reducing energy costs for tenants, concerns are growing about the financial burden involved in meeting the new requirements. For landlords with older or less energy-efficient properties, the cost of improvements could be substantial.
Goodlord’s latest survey highlights just how concerned many landlords have become. According to the research, 23% of landlords said they plan to sell some or all of their rental properties because of the EPC changes. Meanwhile, a further 32% said they are still undecided about their future plans.
This means more than half of landlords are either considering leaving the market or remain uncertain about whether keeping their properties will still be financially worthwhile once the new rules come into force.
The issue is particularly important because a large proportion of rental homes currently fall below the proposed EPC C standard. Industry data suggests that more than half of all private rented properties would require improvements in order to comply with the government’s plans.
For some landlords, the work needed may be relatively simple, such as installing better insulation or upgrading heating systems. However, for older homes, flats, or period properties, achieving an EPC C rating could involve major renovation work and significant expense.
Landlords are already dealing with rising mortgage costs, higher taxes, increased maintenance expenses and stricter regulations, meaning many now feel additional EPC requirements may push their finances too far.
Emily Popple, Director of Landlord Experience at Goodlord, said the government has placed energy efficiency firmly back at the centre of discussions for landlords. She explained that although many landlords understand the direction the government wants to take, there are serious concerns about whether the costs of upgrading properties are manageable.
According to Popple, the survey shows that many landlords are carefully weighing up whether investing in improvements still makes financial sense. Some property owners have already decided that selling properties may be the easier option instead of taking on large refurbishment costs.
She also pointed out that the scale of work needed across the sector is enormous. With millions of rental properties still below EPC C, completing all necessary upgrades by 2030 could prove extremely challenging.
The practical side of the issue is also becoming a major concern. Demand for tradespeople, builders and energy efficiency specialists is likely to rise sharply as the deadline approaches. This could increase costs further and make it harder for landlords to secure work within the required timeframe.
Previous research by Goodlord has already shown concerns across the industry about tougher energy efficiency standards. Earlier polling found that 46% of landlords and 34% of letting agents believed raising the minimum EPC requirements would negatively affect the rental market.
Industry organisations have also warned that stricter rules could reduce the supply of rental properties if landlords continue choosing to sell homes instead of upgrading them.
Propertymark has been among the groups raising concerns about the government’s Warm Homes Plan and the impact it could have on landlords and letting agents.
Timothy Douglas, Head of Policy and Campaigns at Propertymark, said the organisation supports efforts to improve energy efficiency and reduce fuel poverty. However, he warned that many landlords are being expected to carry out costly improvements without enough financial support or realistic delivery timescales.
Douglas explained that landlords with older or harder-to-treat properties could face particularly difficult challenges. Some homes may require extensive structural work to improve their EPC ratings, making compliance both expensive and time-consuming.
He also stressed that a more gradual and flexible approach would allow landlords to better manage costs while still helping the government move towards its net zero ambitions.
Many landlords are concerned that without stronger support, the policy could unintentionally push more property owners out of the market altogether. This could further reduce the supply of rental housing at a time when tenant demand already remains high across much of the UK.
The rental sector has been under increasing pressure in recent years. Alongside rising costs, landlords are also dealing with the introduction of the Renters’ Rights Act, changes to taxation, tighter compliance rules and ongoing affordability issues within the wider housing market.
For smaller landlords in particular, the growing number of regulations is making it harder to justify remaining in the sector. Some property owners who once viewed buy-to-let as a long-term investment are now reconsidering whether it is still worthwhile.
At the same time, tenants continue to face rising rents and limited housing supply in many areas. If more landlords choose to sell properties instead of upgrading them, competition for rental homes could become even more intense.
Despite these concerns, supporters of the EPC reforms argue that improving energy efficiency will benefit tenants through lower energy bills and warmer homes. Better-quality housing could also help reduce fuel poverty and improve living standards over the long term.
The challenge for the government will be balancing these environmental goals with the realities faced by landlords who are expected to fund much of the work themselves.
Financial support schemes, grants or tax incentives may ultimately play a major role in determining whether landlords stay in the market or decide to leave. Without additional support, many property owners may continue viewing the EPC targets as financially unworkable.
The next few years are likely to be critical for the private rented sector. Landlords, tenants and industry professionals will all be watching closely to see whether the government adjusts its plans or introduces further guidance on how the targets will be achieved.
For now, the latest survey highlights growing uncertainty throughout the market. While the government remains committed to improving energy efficiency standards, many landlords are questioning whether they can realistically afford to meet the new EPC requirements without major financial strain.
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