New data shows that more than half of homes in England and Wales (55%) currently hold an Energy Performance Certificate (EPC) rating of ‘D’ or lower, raising concerns ahead of upcoming changes to energy efficiency standards.

Under the EPC system, properties are rated on a scale from A to G based on their energy efficiency, with lower ratings indicating poorer performance and higher running costs. The current breakdown is as follows:

EPC rating breakdown

The findings highlight how widespread lower-rated housing remains across the housing stock, particularly in older properties that have not undergone recent energy upgrades.

The research, based on local authority data analysed by Emperor Paint, also identifies the areas with the highest concentration of homes rated ‘D’ or below.

Areas with the lowest energy efficiency ratings

1. Isles of Scilly – 84.97% of homes rated ‘D’ or below (1,102 out of 1,297 homes)
2. Gwynedd – 74.32% (42,721 out of 57,483 homes)
3. Pendle – 74.05% (35,686 out of 48,193 homes)
4. Ceredigion – 72.97% (28,100 out of 38,511 homes)
5. Castle Point – 72.59% (24,202 out of 33,342 homes)
6. Blackpool – 72.04% (67,072 out of 93,109 homes)
7. Barrow-In-Furness – 72.00% (20,459 out of 28,415 homes)
8. Hyndburn – 71.23% (29,432 out of 41,318 homes)
9. Eden – 70.89% (17,266 out of 24,357 homes)
10. Copeland – 70.24% (18,534 out of 26,387 homes)
11. Staffordshire Moorlands – 69.96% (28,204 out of 40,316 homes)
12. Richmondshire – 69.68% (14,906 out of 21,391 homes)
13. South Lakeland – 69.63% (31,819 out of 45,696 homes)
14. Burnley – 69.60% (36,704 out of 52,733 homes)
15. Denbighshire – 69.52% (34,013 out of 48,923 homes)
16. Isle of Anglesey – 68.81% (27,897 out of 40,544 homes)
17. Ryedale – 68.74% (16,957 out of 24,667 homes)
18. Southend-On-Sea – 68.62% (59,579 out of 86,819 homes)
19. Allerdale – 68.60% (27,681 out of 40,351 homes)
20. Carmarthenshire – 68.33% (60,062 out of 87,899 homes)
21. Conwy – 68.17% (42,399 out of 62,193 homes)
22. Powys – 68.11% (43,097 out of 63,280 homes)
23. Craven – 67.92% (15,468 out of 22,775 homes)
24. Bradford – 66.98% (187,403 out of 279,800 homes)
25. East Lindsey – 66.85% (54,065 out of 80,881 homes)
26. Scarborough – 66.82% (35,366 out of 52,926 homes)
27. Chiltern – 66.56% (17,311 out of 26,010 homes)
28. Calderdale – 66.45% (71,924 out of 108,237 homes)
29. Blaenau Gwent – 65.97% (19,902 out of 30,166 homes)
30. Pembrokeshire – 65.51% (39,206 out of 59,844 homes)

New EPC rules on the way

The EPC system is set for a major overhaul, with new measures expected to change how energy efficiency is assessed. Four new indicators will be introduced: fabric performance, heating systems, smart readiness, and energy cost.

These changes are expected to be introduced during the year, with full compliance becoming mandatory from October 2029.

In addition, rental properties in England and Wales will need to meet a higher minimum standard. The current requirement of EPC rating E is expected to rise to a rating of C by October 2030, meaning many landlords may need to upgrade properties significantly to remain compliant.

What this means for housing

With a large proportion of homes still rated below modern efficiency expectations, the scale of improvement needed across the housing stock is considerable. Older properties in particular are likely to require insulation upgrades, heating system improvements, and broader energy performance changes to meet future standards.

As regulations tighten, the gap between current performance and required standards suggests that energy efficiency upgrades will become an increasingly important focus for homeowners, landlords, and policymakers alike.

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