Over a third of properties currently for sale carry an Energy Performance Certificate (EPC) rating lower than Band C, with this figure spiking to a staggering 46% in certain key urban areas, according to research carried out by epIMS.

The Government has set forth ambitious environmental mandates, mandating that by 2030, all privately rented properties must meet or exceed an EPC rating of C. For landlords whose properties fail to comply, the average cost to upgrade their properties is estimated to be around £8,000.

The extensive epIMS analysis examined over one million properties actively listed on the market, uncovering that a significant 33.8% of potential buy-to-let investments are unlikely to satisfy the anticipated EPC C benchmark. Breaking down the figures by region, Wales emerges as the least compliant, with a striking 50.1% of listings below Band C. Scotland follows closely behind with 45.7% of properties failing to meet the target.

In England, compliance fares slightly better, though the numbers reveal that 33.2% of homes still do not meet the proposed minimum, possessing ratings in Band D or even lower. Among major cities, Bradford ranks as the least energy-efficient, showing that 46.2% of available properties fall short of the Band C threshold. High rates of non-compliance are also present in Edinburgh (39.6%), Brighton (39.4%), Bristol (33.9%), and Nottingham (33.5%). Even in London, which boasts the most energy-efficient market among major cities, a substantial 23.5% of homes still receive an EPC rating of D or worse.

Craig Cooper, COO of epIMS, observed: “Landlords have had to contend with a raft of legislative changes in recent years, the vast majority of which have dented the financial returns they see from their investment portfolio.”

He continued, “The requirement to meet an EPC C rating will be the latest initiative that will require many landlords to make further investment, with the average cost of achieving such compliance coming in at around £8,000 per property.”

While Cooper acknowledges the positive intent behind fostering a greener rental sector, he points out that the Government’s “fabric first” strategy in promoting energy efficiency may not be the most economical for landlords.

“For example, small changes such as installing PV panels is far more affordable than internal or external wall installation, but could be just the strategy needed to achieve the C threshold," he explains. "This mitigates the need for landlords to spend more than they have to, which in turn reduces the chance that these costs will be passed onto tenants in the form of rental increases, leading to a far less disruptive landscape for renters themselves.”

The findings from epIMS highlight the challenges landlords face in adapting to new regulatory standards and suggest that practical, cost-effective solutions may be necessary to balance sustainability goals with financial feasibility.