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The government's 2025 consultation on raising the Minimum Energy Efficiency Standard (MEES) to EPC band C by 2030 has drawn sharp criticism from the sector. In a commentary published today (24 May 2025) by Landlord Today, Paragon Bank's Louisa Sedgwick warns that the timeline and cost cap proposed by the Department for Energy Security and Net Zero (DESNZ) are "a tall order" for England's 2.8 million sub-C rental homes (Landlord Today).
DESNZ proposes phasing the new threshold from 2026 for new lets, extending to all existing tenancies by 2030, with a revised cost cap of £15,000 per property (consultation document). Landlords unable to meet the standard would need to register exemptions or face civil penalties of up to £30,000.
Sedgwick calculates that bringing three million homes up to EPC C by 2030 would require retrofitting nearly 3,000 properties every working day if phased, or double that if the earlier 2028 cut-off is reinstated. Skill shortages, supply chain pressures, and the concentration of hard-to-treat Victorian stock in northern regions compound the challenge.
The English Housing Survey confirms the scale: although the share of PRS dwellings already rated A-C has doubled to 48% since 2013, more than half the sector still lingers in D or worse (EHS 2022-23 energy report).
At the consultation's upper cost cap, headline spending could top £45 billion. Paragon notes that even the government's own average upgrade estimate—£6,100 to £6,800—dwarfs annual net rental yields outside London, risking forced sales of poorer-performing stock. For portfolio landlords holding 10 properties, a worst-case £150,000 bill could wipe out several years of profits and strain mortgage affordability if higher-rate borrowing persists.
"If we're serious about Net Zero, policy has to be matched by practicality," Sedgwick argues. "Without phased deadlines and meaningful grant support, large swathes of older PRS housing will simply exit the market."
Paragon joins UK Finance in calling for a staggered roll-out—2030 for new lets, 2033 for renewals, 2035 for all—plus a £10,000 cap and tax-deductible upgrade loans. Stakeholders also want a national skills programme to plug installer gaps and an expanded Warm Homes Grant to keep vulnerable tenants insulated from rent rises.
Landlords who act early can still find cost-effective wins. Cavity wall insulation and low-flow shower heads often lift EPCs at a fraction of boiler replacement costs, while smart heating controls satisfy upcoming Building Regulations Part L tweaks. But until Whitehall confirms final dates and funding, many investors may hit pause on acquisitions—or sell ageing terraces—exacerbating the supply crunch flagged in today's Knight Frank market snapshot.
With policy still in flux, informed preparation beats panic spending. The Guild will continue pressing officials for a measured timetable that keeps both tenants warm and landlords solvent.