EPC C Targets Could Put Renters at Risk Without Stronger Protections – ACORN

New minimum energy efficiency standards aiming for EPC C ratings in privately rented homes have been welcomed by tenant group ACORN. However, the group warns that without stronger tenant protections, renters may face eviction or rent increases when landlords undertake required retrofits, posing challenges for both tenants and landlords in the private rental sector.

Background on EPC C Targets and Tenant Concerns

The UK government has proposed that all private rented properties achieve an EPC C rating by 2030, with new tenancies required to meet this standard by 2028. These measures are part of wider efforts to improve energy efficiency, reduce carbon emissions, and lower energy bills for tenants. While many landlords have expressed concerns about the financial costs involved, tenant groups like ACORN have highlighted potential risks to renters if protections are not strengthened alongside these regulations.

ACORN conducted a survey of 252 renters, revealing that 70% fear eviction or rent hikes if they request or agree to energy efficiency retrofits. This concern is significant given that 90.1% of respondents reported issues such as poor insulation, draughty windows or doors, and outdated heating systems—factors that directly contribute to higher energy bills. On average, tenants reported spending £148 per month on energy, underscoring the importance of improving property efficiency.

Tenant Willingness to Accept Retrofits Amidst Eviction Fears

The survey found that over 90% of renters would welcome energy efficiency improvements if their tenancy was secure. However, the fear of eviction or rent increases remains a major barrier. ACORN emphasises that ending Section 21 “no fault” evictions alone is insufficient protection. Without explicit measures to prevent landlords from raising rents or refusing to renew short-term contracts after retrofits, tenants risk displacement and increased living costs.

ACORN has called on the government to introduce a rent freeze during energy efficiency works to prevent landlords from using retrofits as a reason to increase rents. The group suggests that in-tenancy rent controls or freezes on rents and property sales during and after retrofit works could help safeguard tenants while encouraging landlords to improve their properties.

Financial Implications for Landlords

While tenant concerns are clear, the survey does not address the financial burden on landlords. Industry bodies such as the National Residential Landlords Association (NRLA) estimate that landlords may need to invest between £6,100 and £6,800 per property to meet EPC C standards. Furthermore, Propertymark has warned that raising the exemption threshold to £15,000 could force some landlords out of the market, potentially reducing rental supply.

For landlords and letting agents, these costs highlight the importance of careful financial planning and tenant communication. Balancing the need to comply with EPC regulations while maintaining affordability and tenancy security will be a key challenge in the coming years.

Implications for UK Landlords and Agents

Landlords should be aware of the potential for increased tenant concerns and the risk of disputes arising from retrofit works. Clear communication about planned improvements, timelines, and any rent adjustments will be essential. Agents and property managers may also need to support landlords in navigating these changes and ensuring compliance with evolving regulations.

Moreover, landlords should consider the benefits of upgrading properties proactively, as improved energy efficiency can enhance tenant satisfaction, reduce void periods, and potentially increase property value. However, without adequate tenant protections, there is a risk that retrofit costs could be passed on in ways that destabilise tenancies.

Looking Ahead: Support and Resources for Landlords

To assist landlords and agents in managing these challenges, the Tenancy Lawyers Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers specialising in legal, trades, insurance, financial, mortgage, tenant screening, and other relevant sectors. Landlords and property managers will be able to access trusted support to help with compliance and property management.

Service providers interested in joining the Trusted Partners Hub can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/

In summary, while EPC C targets represent a positive step towards more energy-efficient rental homes, landlords and agents must be mindful of tenant concerns and the financial implications. Stronger tenant protections and collaborative approaches will be essential to ensure that energy efficiency improvements benefit both landlords and renters without unintended negative consequences.