Proposed EPC changes risk creating a perfect storm of rising costs, policy uncertainty and capacity bottlenecks in the private rented sector – but also present major opportunities for agents, brokers and lenders.
In our recent webinar Neil Cobbold discussed the impact of the changes to EPCs. You can watch his presentation below.
Key takeaways from Neil Cobbold’s session
Reapit’s analysis of 52,000 agency‑managed PRS properties found that 51.5% are still below EPC band C, with 17.4% sitting in E–G, highlighting the scale of the retrofit challenge.
Using government cost assumptions, that shortfall needs around £24bn of upgrade spend across the public rented sector (PRS) to hit the proposed minimum standard.
Policy consultations in England, Wales and Scotland are creating “inertia” as landlords are told to wait for clarity, shrinking the delivery window and pushing up prices as work bunches closer to deadlines.
Why this matters for landlords and finance
A growing share of stock could become uneconomic to upgrade without targeted finance or exemptions, especially at the lower‑yield end of the market.
If even a fraction of these landlords choose to sell rather than retrofit, that represents hundreds of thousands of PRS households leaving the sector, with clear implications for lender risk models and local housing supply.
Weak enforcement at current MEES levels raises questions: without robust monitoring and penalties, tightening to EPC C could simply increase the pool of non‑compliant properties rather than driving genuine improvement.
The opportunity for agents, brokers and lenders
Agents and brokers sitting on portfolio‑level EPC data are well placed to map risk, prioritise works and connect landlords with trusted retrofit partners and green finance products.
Lenders and insurers can differentiate by rewarding “good” landlords with better terms where there is a credible plan to reach EPC C and beyond, even if government enforcement lags behind.
Done well, this turns EPC regulation from a pure compliance headache into a chance to protect asset values, reduce arrears risk and support the wider net‑zero transition in a practical, commercially viable way.
Want a deeper dive into the numbers, supply‑chain constraints and finance angles? Watch the video below.
