More than half of properties in England fail to meet the minimum C rating on the Energy Performance Certificate (EPC), a standard landlords will be required to reach by 2030, according to recent findings.

An analysis by door and window supplier Eurocell reveals that just 74,770 homes across the UK achieved the top A rating—representing a mere 0.3% of the nation's housing stock.

The EPC scale ranges from A (most efficient) to G (least efficient), with D being the most common rating in England. Over 9.3 million homes fall into this category, indicating that many landlords may need to invest in upgrades to comply with future regulations.

Necessary improvements could include better insulation, window replacements, or the installation of more energy-efficient boilers.

Where Are Homes Least Energy Efficient?

Research shows that Eden in Cumbria has the least energy-efficient housing in England.

In Eden, 17% of the 24,361 homes received an F or G rating on the energy efficiency scale.

Experts at Eurocell attributed the low ratings to "outdated insulation in older properties," noting that many homes in the area are traditional stone cottages built before insulation standards were established.

In West Devon, around 15% of homes were rated F or G, which Eurocell linked to the prevalence of costly oil or solid-fuel heating systems.

Cornwall also struggled with energy efficiency, with over 14% of properties falling into the lowest EPC bands—an issue worsened by an ageing housing stock and a damp coastal climate.

Ryedale in North Yorkshire performed poorly as well, with more than 15% of homes ranking in the lowest EPC categories.

Conversely, Tower Hamlets in London had the highest energy efficiency ratings. The study found that over 34% of properties in the borough had "above average" EPC scores, thanks to modern construction and a surge in new housing developments in recent years.

Other areas with strong energy efficiency ratings included the Vale of White Horse in Oxfordshire and Greenwich in London.

Helen Godsiff on Energy Efficiency Challenges for Landlords

Speaking to This is Money, Helen Godsiff, brand manager at Eurocell, highlighted the growing pressure on landlords to enhance energy efficiency as the government's 2030 EPC target approaches.

"Many older properties will need major upgrades—such as new windows, doors, and insulation—to comply with the new standards," she explained.

As an initial step, she advised landlords to assess the current EPC ratings of their properties, focusing on their maximum potential rating after improvements.

"If a property is already close to a C rating, minor changes like better insulation or double glazing could be sufficient," she noted. "However, for homes with much lower ratings, the cost of compliance could be substantial."

She also raised the question of whether some landlords might opt to sell their properties instead of investing in upgrades. "Those making improvements should also consider future-proofing against further regulatory changes," she added.

What’s Changing for Landlords?

The EPC system, introduced in 2007, ranks properties from A (most efficient) to G (least efficient). Currently, rental properties in England and Wales must have a minimum EPC rating of E.

However, under new regulations introduced by the Labour Government, private landlords must achieve a C rating or higher by 2030. Labour claims this change could save tenants an average of £240 annually on energy bills while also improving rental property quality.

Landlords will be responsible for covering upgrade costs, which could include replacing boilers, improving insulation, or installing double-glazing. However, spending limits are being considered—potentially capping costs at £15,000 per property, or £10,000 for landlords charging below-average rent.

Government estimates suggest that upgrading a property to meet the new standard will cost between £6,100 and £6,800 on average. In September 2024, Labour announced that the rule would also extend to councils and housing associations in England.

Some financial support measures, including grants, may be available to help landlords manage upgrade costs.

How to Improve Your EPC Rating

EPC assessments cost between £60 and £120, and property owners can check their rating at gov.uk/find-energy-certificate for homes in England, Wales, or Northern Ireland.

Several improvements can boost a home's energy efficiency, including:

• Sealing draughty areas
• Installing double glazing
• Adding loft or cavity wall insulation
• Upgrading to a heat pump or biomass boiler
• Installing solar panels

Eurocell emphasized the importance of sealing draughts, stating: "Air leaks around windows and doors can significantly impact energy efficiency. If left unchecked, small draughts can lead to larger structural problems. Using a high-quality sealant can instantly make a home feel warmer."

Cost estimates for common energy efficiency improvements include:

• Loft insulation: £800–£900 (Ovo Energy)
• Cavity wall insulation: ~£2,700
• Ten solar panels: ~£6,300
• Air source heat pump: £5,000+ (with a government grant covering up to £7,500)