The EPC scale, which rates properties from A to G based on their potential heat or energy loss, pollution levels, and fuel costs, is used to assess a building’s efficiency.

The City of London now has 63% of its properties with an EPC rating of “C” or above. Following closely after are Peterborough with 53% of its homes in the band of “C” or higher and Salford with 58% of its houses reaching the necessary energy rating.

Birmingham was placed worst overall, with only 31% of dwellings achieving the desired energy rating. With 32% and 33% of their respective homes receiving an EPC rating of “C” or above, Stoke-on-Trent and Lancaster similarly performed worse than the national average.

In comparison to other regions of England, London has 45% of its homes in the “C” or higher EPC band. Only 35% of the properties in Yorkshire and The Humber satisfy the required EPC requirements of “C,” making it the region on the list with the lowest score.

What else does this entail for landlords in the UK? By December 2025, all rental homes will have to comply with a mandatory energy performance certificate grade of band “C” for new tenancies, according to a measure the government has proposed.

The government is persevering in its effort to achieve carbon neutrality by 2050. Raising the bar in terms of EPC criteria feels somewhat unfair because landlords are perceived as a soft target. Buy-to-let owners still have three years to make additional environmental upgrades to satisfy a new “C” objective after just finishing off making sure their homes match the present “E” EPC rating. Unfortunately, the costliest energy saving solutions are those that will soon be necessary. Simply switching to LED light bulbs won’t be sufficient; we’ll also need solar panels, cavity wall insulation, and air source heat pumps.

When it comes to profitability, margins, and funding energy efficiency projects, landlords will need to take a close look at their returns. Leeds, Birmingham, and Brighton, three of the UK’s largest cities, are among of those with the worst EPC ratings. When the numbers are added up, many landlords will discover that their green investments won’t be able to pay for themselves, especially if their neighbourhood won’t accept higher rates.

Another difficulty with the UK’s ageing housing sector is that pre-war and historical houses don’t meet EPC standards. Given that 97% of new houses produced in the second quarter of 2021 had an EPC rating of C or higher, according to government statistics, we predict a trend toward investing in new homes.