Under proposed regulations, landlords may be required to make changes to their properties to improve their Energy Performance Certificate (EPC) ratings to C or above.

The anticipated deadline to comply with these regulations is 2025 for all new tenancies, and 2028 for all existing tenancies. But making the necessary energy-efficient improvements could be a costly exercise for many landlords, particularly those with older properties.

The landlords we surveyed estimated an average cost of £5,900 to achieve the required EPC rating however, this figure could be significantly underestimated.

Landlords who have already made the necessary improvements to their properties have spent £8,900 on average, but wider market forces such as labour costs and material shortages could push this up even further.

Pass on costs

Of the landlords we spoke to* over half said that they will pass at least some of these costs onto their tenants in a bid to recoup some of the money they will need to spend.

Tenants in London are most likely to see a rise in their rents as a result, with 68% of landlords in London saying they would share at least some of the costs with their tenants.

Whether landlords increase rents straight away or not, nearly a fifth (18%) of landlords expect them to rise as a natural consequence of the new regulations.

Finance options

While passing on some of the costs to tenants may be necessary, finding a cost-effective funding solution, such as bridging finance, might be worthwhile.

This funding could help landlords make the required changes ahead of the deadline, relieving some of the pressure, and could possibly offset the costs that tenants would otherwise see. 

For landlords unaware of the level of works required, what the associated costs will be, or what finance options are available to them, speaking to a professional mortgage broker or lender sooner rather than later could help paint a clearer picture.

Read Shawbrook’s Confronting the EPC Challenge report

*Research Methodology

Shawbrook Bank contracted Opinium to undertake research between 18th and 25th November 2021 to understand landlords’ awareness of the upcoming proposed changes to the Energy Performance Certification (EPC), which will require properties to be rated ‘C’ or above by 2025 in order to begin a new tenancy. A total 1,000 UK landlords were surveyed.

Author: Emma Cox, Managing Director of Real Estate, Shawbrook Bank.


  1. OK so it isn’t as blatant as some other articles published on here but it’s still just an Advertorial for a bank.

    I do wonder where they actually find landlords to undertake these surveys as I’ve never been approached – seriously I am curious to know.

    I find it incredibly alarming that ANY landlord would not seek to pass on these enforced expenses, what are they thinking !!

    If I had a £10,000 FORCED expense put on me by the Government (when it’s only forced upon Landlords) then I would be splitting that over 5 years, so an extra £2000 per year in rent, which is roughly an extra £40 per week.

    That extra £40 per week will be ON TOP OF annual price increases too.

    If the Government are insistent on crippling the PRS, landlords need to get as much out of it as possible while they can.

    Rent Controls will be next – and I’d rather have an enforced 80% of £1000 than 80% of £700


    • I’ve only ever once been invited to take part in a survey despite being a landlord for over 25 years. I’ll be passing the whole of the cost into tenants or selling up and investing elsewhere, depending on how much it’s going to cost me to upgrade each property. If I decide to sell a property I’ve no idea where my tenants can find alternative accommodation. My long term tenants have been great and it’s not their fault they’ll be fighting for a home in a diminishing market. The situation the gov is forcing on the PRS is scandalous.


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