NRLA warns that landlords can’t afford EPC upgrades

The National Residential Landlords Association (NRLA) has raised concerns that many landlords will struggle to finance the government’s proposed Energy Performance Certificate (EPC) upgrades. With costs potentially reaching up to £15,000 per property, the NRLA warns that without adequate support, landlords may be unable to meet the new minimum EPC standards, putting the government’s energy efficiency targets at risk.

Government EPC upgrade requirements and landlord affordability

The UK government has set out plans requiring rental properties to achieve a minimum EPC rating of C by 2028 for new tenancies and by 2030 for all tenancies. This initiative aims to improve energy efficiency across the private rented sector (PRS), reducing carbon emissions and lowering energy bills for tenants. However, the NRLA highlights that the financial burden on landlords could be substantial, with upgrade costs reaching as much as £15,000 per property.

Research conducted by the NRLA indicates that once expenditure on energy improvements surpasses approximately £7,700, the average landlord’s ability to make a profit diminishes significantly. This suggests that many landlords, particularly those with lower rental incomes, may find it economically unviable to undertake the necessary upgrades without additional financial support.

Challenges in implementing EPC improvements

Ben Beadle, Chief Executive of the NRLA, emphasises the importance of improving energy efficiency in rental homes but stresses that this cannot be achieved without a clear and practical plan to support landlords. He states, “Relying on the misguided belief that every landlord has limitless reserves to fall back on is not only wrong but will not get tenants any closer to seeing their homes made energy efficient.”

Beadle calls for the government to engage with the rental sector to develop a bespoke support package that encourages responsible landlords to invest in energy efficiency. He also points out the need to reform the current tax system, which he describes as “broken” and not conducive to proactive property improvements.

Impact of funding cuts on energy efficiency initiatives

The NRLA’s warning follows the Autumn Budget announcement, which saw a 25% reduction in overall energy efficiency funding for this parliamentary term. This cut, highlighted by the environmental think tank E3G, raises concerns about the government’s commitment to supporting landlords in meeting EPC targets.

The NRLA also challenges the misconception that landlords are a uniformly wealthy group capable of absorbing significant upgrade costs. HM Revenue & Customs (HMRC) data reveals that unincorporated landlords report an average annual rental income of just £19,400, which is below the full-time minimum wage. This underscores the financial constraints many landlords face.

Calls for targeted support to help the private rented sector

The NRLA notes that the recent Budget did not include measures specifically designed to assist the PRS in achieving the government’s energy efficiency goals. This omission is despite recommendations from the Committee on Fuel Poverty, which urged ministers to introduce tax incentives to encourage investment in energy-saving improvements.

With landlords awaiting clarity on final EPC proposals, the NRLA advocates for all energy efficiency expenditure to be fully deductible against income tax. Additionally, it suggests that any investment cap should take into account regional property values, warning that a single national limit could disproportionately affect landlords in lower-value areas, exacerbating regional disparities between northern and southern England.

Implications for UK landlords and agents

For landlords and letting agents, these developments highlight the need to carefully consider the financial implications of upcoming EPC regulations. Understanding the potential costs and available support will be crucial in planning for compliance. Agents should also be prepared to advise landlords on the evolving regulatory landscape and the importance of engaging with government consultations and industry bodies.

Landlords may wish to review their portfolios to identify properties that require significant energy efficiency improvements and explore options for funding and tax relief. Staying informed about policy changes and participating in landlord associations can provide valuable guidance and advocacy during this period of transition.

Looking ahead: TLA’s Trusted Partners Hub

In response to the growing complexity of managing rental properties and meeting regulatory requirements, The Landlord Association (TLA) is launching a new Trusted Partners Hub in the first quarter of 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses.

Service providers in legal, trades, insurance, financial, mortgage, tenant screening, and other relevant sectors are invited to register their interest to become part of this initiative. This resource aims to help landlords access reliable services to navigate challenges such as EPC compliance and property management more effectively.

For more information or to register interest, providers can visit: landlordassociation.org.uk/become-a-tla-service-partner/.