More than 340,000 homes must be upgraded every year to hit 2030 EPC C targets.

However, Propertymark says at the current rate, it will take an extra 12 years to get all rented homes up to EPC C standards.

Ed Miliband has previously said that all landlords must meet 2030 EPC C targets.

Must not be a one-size-fits-all approach

Propertymark’s report, Lagging Behind: Energy Efficiency in Low-Viability Properties, reveals a stark disparity in upgrading properties to meet EPC targets.

In some northern and midlands local authority areas, improving home energy efficiency can cost up to 25% of the property’s value. However, in affluent areas of London and the Southeast, installing heat pumps costs less than 2% of the property’s value.

Propertymark argues that the government must understand that energy efficiency targets can’t be a one-size-fits-all approach.

The industry body said: “We continue to lobby decision-makers to move away from a one-size-fits-all policy and develop energy efficiency proposals that work with the different ages, conditions, and sizes of properties.

“Failure to factor in the huge regional variations in property prices when incentivising homeowners and landlords to retrofit their properties to meet national net zero targets risks damaging the quality and availability of housing stock.”

Encourages people rather than penalise them

In 2024, newly built homes with an EPC A rating typically yield 5.5%, while D-rated homes offer 7.6%. The least efficient EPC E homes provide the highest returns at 7.9%.

However, Reapit’s analysis of 52,000 rental properties across England, Scotland, and Wales indicates that up to 880,000 rental homes—17% of the market—could be lost if landlords choose to sell rather than upgrade properties with EPC ratings of E, F, or G.

Meanwhile, research from Hamptons shows that 55% of newly EPC-certified rental properties achieved a rating of C or better, compared to 48% of owner-occupied homes. However, it’s estimated that 3-4% of rented homes may never reach an EPC rating of A-C.

Propertymark said: “We want to see more energy-efficient homes, but, as we have long said, the rules and requirements must be realistic and achievable for the sector.

“Any future targets must be fully backed by legislation that incentivises and encourages people rather than penalising them.”

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