Letting agents and mortgage brokers are being encouraged to take a proactive role in helping landlords meet upcoming, stricter Energy Performance Certificate (EPC) requirements. With over half of privately rented sector (PRS) properties currently below EPC band C, industry experts highlight the need for agents to guide landlords through retrofit planning and financing to comply with new regulations.

The evolving role of agents and brokers in EPC compliance

Dr Neil Cobbold, Commercial Director at Reapit, emphasised during Eco Approach’s recent webinar on green homes that agents and brokers are well positioned to support landlords in navigating the challenges posed by tighter EPC standards. He noted that agents have access to advanced EPC reporting tools, enabling them to identify properties requiring energy efficiency improvements within their portfolios. Furthermore, agents often maintain relationships with trusted contractors who can undertake retrofit work, making them key facilitators in the upgrade process.

Collaboration with specialist mortgage brokers is also becoming increasingly important. According to Dr Cobbold, such partnerships allow agents to offer landlords tailored advice on financial products designed to fund energy efficiency improvements. This combined expertise helps landlords progress towards meeting the higher EPC band C standard, which is expected to become mandatory for rental properties.

Opportunities for agents amid retrofit demand

Dr Cobbold highlighted that agents who embrace this advisory and coordination role could unlock new revenue streams. With the PRS retrofit programme estimated to cost around £24 billion, agents combining technological tools with industry knowledge stand to earn substantial commissions. More importantly, this approach can strengthen long-term relationships with landlord clients by positioning agents as trusted partners in compliance and property value enhancement.

Current EPC performance and sector challenges

Reapit’s analysis of agency-managed PRS homes reveals that 51.5% of properties fall below EPC band C, with 17.4% rated in the lowest bands E, F, or G. This indicates a significant retrofit requirement across the sector. However, Dr Cobbold pointed out that policy uncertainty, rising costs, and limited retrofit capacity have created inertia among landlords and agents alike. Concerns over timelines and supply-demand imbalances add financial pressure, making it harder to initiate necessary energy efficiency improvements.

This inertia risks delaying progress on improving housing stock, which not only affects compliance but also impacts tenants by perpetuating fuel poverty and higher energy costs.

Strategic advice for landlords preparing for EPC reforms

Property118 offers practical guidance for landlords aiming to manage the transition effectively:

• Document and audit readiness: Landlords should map each property’s current EPC rating, estimate retrofit costs, and forecast rental resilience improvements. Creating a schedule with timelines, cost brackets, and contractor availability helps maintain control over retrofit sequencing.
• Smart refinancing: Reviewing existing debt is advisable, as energy efficiency improvements can enhance property valuations. This may open opportunities for lower-cost refinancing and release capital for further upgrades.
• Structural planning: Landlords should assess whether retrofit works should be commissioned through specific company structures to optimise tax treatment, manage liabilities, and improve borrowing flexibility.
• Capital redeployment: Investment should focus on assets offering the best efficiency-to-yield ratio. High-cost retrofits on underperforming properties can limit future options. Selective disposals may be a strategic way to rebalance portfolios and reinvest in stronger stock. Landlords considering sales should review Capital Gains Tax implications carefully.
• Securing contractor capacity: Early booking of surveys and quotes is essential due to tight retrofit supply chains. Disciplined scheduling can help avoid price increases and project delays.

Implications for UK landlords and agents

The forthcoming EPC reforms will reward landlords who plan ahead and penalise those who delay. Agents and brokers have a crucial role in guiding landlords through this complex landscape, helping to manage compliance risks and capitalise on opportunities to enhance property value and tenant satisfaction. By adopting a strategic, data-driven approach to retrofit planning and financing, landlords can better navigate regulatory changes and market pressures.

Upcoming TLA initiative

The Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/.