Recent research highlights a slowdown in energy efficiency improvements across the UK rental and resale property markets, despite government proposals aiming for higher EPC C ratings in rental properties. This trend is significant for landlords as it affects compliance, property value, and tenant demand for greener homes.

Slower Progress in Energy Efficiency Upgrades

The Rightmove Greener Homes report reveals that although the rental sector generally maintains a more energy-efficient property stock than the resale market, the pace of improvements has nearly halved over the past five years compared with the previous five-year period. This slowdown affects both landlords and agents managing rental properties, as well as homeowners selling properties.

Between 2015 and 2020, the proportion of rental homes with an EPC rating of C or above increased from 41% to 52%. However, from 2020 to 2025, this growth slowed considerably, rising only from 52% to 58%. In the resale market, the share of properties rated EPC C or higher increased from 29% to 40% between 2015 and 2020, then slowed to 46% by 2025. Notably, only 3% of the total progress in energy efficiency over the past five years occurred in the last year alone.

Policy Ambitions Not Yielding Expected Results

Colleen Babcock, a property expert at Rightmove, commented on the findings: “Policy ambition hasn’t translated into real-world acceleration. We might have expected green improvements to speed up in the rental sector following policy pushes, but the data shows progress over the past five years has been slower than the previous five.”

For landlords, this presents a challenge in balancing compliance with government regulations, the cost of upgrades, and potential increases in property value. For tenants, the availability of energy-efficient homes that offer genuine cost savings remains limited. Improving energy efficiency is not only beneficial for environmental reasons but also offers financial advantages, making it essential to find ways to facilitate faster improvements.

Landlords Feeling Pressure and Considering Market Exit

The report also indicates that many landlords feel under increasing pressure due to the government’s proposed EPC C targets. Around 27% of landlords identify EPC requirements as a growing challenge in managing their properties. Despite the availability of government grants intended to support green upgrades, 63% of landlords have no plans to make such improvements within the next twelve months, and only 11% are actively seeking to access these grants.

Furthermore, over one-third of landlords (33%) are considering exiting the rental market at some point in the future. This trend is reflected in the increase of former rental properties being listed for sale. In London, 26% of homes listed for sale in 2025 were previously rental properties, up from 18% in 2020 and 15% in 2015. Across Britain, ex-rental listings accounted for 16% in 2025, compared with 11% in 2020 and 12% in 2015.

Implications for UK Landlords and Agents

These findings suggest that while government policies aim to improve the energy efficiency of rental properties, practical challenges remain for landlords. The cost of upgrades, uncertainty about returns on investment, and administrative burdens may deter landlords from making timely improvements. Agents and property managers should be aware of these dynamics when advising landlords and tenants, particularly as energy efficiency increasingly influences tenant preferences and regulatory compliance.

Landlords should consider the potential benefits of upgrading properties to EPC C or above, including improved tenant satisfaction, reduced energy costs, and compliance with future regulations. Accessing available government grants and support schemes could help mitigate upfront costs and encourage more widespread adoption of energy-efficient measures.

Looking Ahead: Support for Landlords

To assist landlords in navigating these challenges, 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 to join the hub, which aims to streamline access to trusted services and facilitate compliance with evolving regulations.