No acceleration in rental EPC improvements despite policy push

New report suggests that rental stock has not improved its energy performance at a faster rate than the resale market, despite sustained policy pressure.

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Rightmove’s 2025 Greener Homes Report indicates that the overall energy efficiency of UK homes is still improving, but at a sluggish pace.

Although the rental sector continues to outperform the resale market on average efficiency, recent legislative ambitions have not produced a meaningful acceleration in upgrades.

The report shows that both sales and lettings markets have recorded a 3% annual rise in the proportion of homes rated EPC C or above. Rental stock now stands at 58% in this category, compared with 46% for homes for sale.

However, the five-year trend reveals that progress has slowed markedly in both sectors.

SLOWING MOMENTUM

The period from 2015 to 2020 saw sharper gains, with rental properties climbing from 41% to 52% at EPC C or above. Between 2020 and 2025, that figure only rose from 52% to 58%.

A similar pattern appears in the resale market, where improvements from 29% to 40% in the first period were followed by a more modest rise from 40% to 46% in the subsequent five years.

This slowdown has occurred despite the government’s minimum EPC E requirement for landlords, introduced in 2020, and the long-trailed proposal for a future EPC C mandate.

Rightmove suggests these initiatives have not been sufficient to overcome the financial and practical barriers to retrofit, and that policy ambition alone has not translated into action.

Regional disparities persist. London leads the rental market, with 66% of homes at EPC C or higher, while Wales lags at 48%. Over a decade, the North West has recorded the strongest improvement, up 23%, whereas the South West has seen the slowest uplift at 11%.

THE FINANCIAL CASE FOR UPGRADES

The report also highlights the widening cost gap between the most and least efficient homes. Properties for sale with an EPC A rating have average annual energy bills of £571, compared with £6,368 for those rated EPC G.

As energy costs remain a concern for many households, this financial disparity continues to sharpen the commercial rationale for investment in efficiency measures.

Green features are becoming more prominent in marketing. Mentions of heat pumps on Rightmove listings have risen 46% year on year, while references to solar panels are up 37%. Many homeowners cite lifestyle improvements as well as bill savings.

Rightmove found that 58% of people making green changes do so for a better quality of life, while 30% believe upgrades add value to their property.

THE KNOWLEDGE GAP

Despite strong public interest, understanding of EPC ratings remains limited. While 84% of people say ratings matter, 63% of renters and 50% of homeowners do not know their property’s current rating.

The report suggests this lack of awareness is a constraint on progress, given that informed decisions depend on knowing baseline performance.

At the same time, only 11% of respondents plan to take action to access available grants in the next year, and nearly two thirds have no intention of undertaking green upgrades in that period. Rightmove concludes that financial incentives alone are failing to drive widespread adoption.

Colleen Babcock, property spokesperson at Rightmove, said: “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, the challenge is balancing compliance with cost and potential value appreciation, and for renters, it’s about finding homes that deliver real savings.

“Energy efficiency isn’t just good for the planet, it’s good for the pocket too, and making it easier to achieve will be key to unlocking faster change.”

Now in its fourth year, the Greener Homes Report draws on analysis of more than 17 million EPC certificates, almost 30 million property listings and survey responses from over 1,200 consumers.

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