The National Residential Landlords Association (NRLA) has raised concerns that landlords across the UK are unable to finance the proposed Energy Performance Certificate (EPC) upgrades required by new government regulations. With costs potentially reaching up to £15,000 per property, many landlords may find it unprofitable to invest in these improvements without additional support, risking delays in meeting the government’s energy efficiency targets.

Government EPC upgrade requirements and financial challenges

The UK government has set ambitious targets for rental properties to achieve a minimum EPC rating of C. By 2028, all new tenancies must meet this standard, with all existing tenancies required to comply by 2030. To reach these standards, landlords may need to invest significant sums—up to £15,000 per property—in energy efficiency improvements.

However, research conducted by the NRLA indicates that once expenditure on energy improvements exceeds £7,700, the average landlord is unlikely to make a profit from their rental income. This financial imbalance highlights the difficulty landlords face in meeting the EPC requirements without risking their investment returns.

NRLA’s call for government support and tax reform

Ben Beadle, Chief Executive of the NRLA, emphasised the importance of energy efficiency but stressed that achieving these goals requires a practical support plan. He stated, “We want all rental properties to be as energy efficient as possible. However, this isn’t going to happen without a serious plan to support the investments needed.”

Beadle criticised the assumption that landlords have unlimited financial reserves to fund upgrades, noting that this misconception will not lead to meaningful improvements for tenants. He urged the government to engage with the rental sector to develop a tailored support package, including reforms to the tax system that currently fail to incentivise proactive property improvements.

Impact of recent budget cuts on energy efficiency funding

The NRLA’s warnings come in the wake of the Autumn Budget, which saw a 25% reduction in overall energy efficiency funding for the current Parliament, a move highlighted by the environmental think tank E3G. This reduction further complicates the ability of landlords to access financial support for necessary upgrades.

Contrary to some perceptions, landlords are not a uniformly wealthy group. HM Revenue & Customs data show that unincorporated landlords report an average annual rental income of £19,400, which is below the full-time minimum wage. This income level underscores the financial constraints many landlords face when required to fund expensive property improvements.

Need for tailored measures to support the private rented sector

The NRLA has criticised the recent Budget for lacking measures specifically designed to help the private rented sector (PRS) meet energy efficiency goals. This is despite recommendations from the Committee on Fuel Poverty, which called on ministers to introduce tax incentives to encourage investment in energy-saving measures.

With landlords awaiting clarity on final government proposals, the NRLA is advocating for all energy efficiency expenditure to be fully deductible against income tax. Additionally, it recommends that any proposed investment cap should consider regional property values, warning that a single national limit could disproportionately affect landlords in lower-value areas, particularly in northern regions, thereby exacerbating regional disparities.

Implications for UK landlords and agents

For landlords and letting agents, these developments highlight the need to carefully assess the financial viability of EPC upgrades and to engage with industry bodies advocating for practical support. Understanding the potential costs and available tax reliefs will be crucial in planning property improvements to comply with EPC regulations.

Agents should also be prepared to advise landlords on the evolving regulatory landscape and the importance of energy efficiency compliance, ensuring that rental properties remain competitive and legally compliant.

Looking ahead: TLA Trusted Partners Hub

In related news, The Landlord Association (TLA) is launching a new Trusted Partners Hub in the first quarter of 2026. This initiative 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 here.