EPC data reveals slow progress on UK home energy upgrades

The average Energy Performance Certificate rating for homes in England and Wales rose to band D68 in the first quarter of 2026, a single point higher than the same period last year. That is the headline from the latest statistical release by the Ministry of Housing, Communities and Local Government, as reported by GOV.UK. For a typical three-bed semi using 12,000 kWh of gas and 3,000 kWh of electricity per year, each EPC point translates to roughly £30–£40 off the annual bill. A single point is not nothing, but it is not nearly enough.

Who qualifies, and who doesn’t

The data shows 44% of all certificates issued in Q1 2026 were for homes rated C or above. That is up from 40% a year earlier, but it still leaves 56% of properties stuck at D or lower. The government’s own heat and buildings strategy assumes 80% of homes will need to reach band C by 2035. At current rates, that target will be missed by a decade or more. The regional splits are stark: London and the South East have the highest share of C-rated homes, while the North East and Wales lag. Households in poorly insulated Victorian terraces in Manchester or Leeds face bills hundreds of pounds higher than a new-build in Milton Keynes, through no fault of their own.

What it costs a typical 3-bed semi

For a homeowner looking to move from band D to C, the typical package of measures, loft insulation, cavity wall fill, double glazing, and a modern condensing boiler, costs between £5,000 and £15,000, depending on property type and local installer rates. The Energy Saving Trust estimates loft insulation alone saves around £180 a year. But the upfront cost deters many. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. Ofgem’s latest figures show fewer than 30,000 heat pump vouchers had been redeemed by end of 2025, against a target of 600,000 by 2028. The gap between policy ambition and household reality is widening.

The catch, and what happens next

But the EPC system itself is flawed. The current methodology, RdSAP, relies on assumed occupancy patterns and standardised fuel costs. It does not measure actual energy use, nor does it reward smart controls or solar battery storage adequately. A home with a heat pump and solar panels might still score a C if the fabric is poor. The government has promised a reformed EPC system by 2027, but the consultation has been delayed twice. For now, the headline number is the only one that matters for compliance with the Minimum Energy Efficiency Standards, which from 2028 will require all new tenancies to have at least a C rating. Landlords with E-rated properties face a sudden, expensive scramble.

What to do and by when

Homeowners should check their current EPC at gov.uk and identify the cheapest single measure that moves the needle. For most, that is top-up loft insulation to 270mm or replacing a G-rated gas boiler with an A-rated heat pump under the £7,500 grant. The Boiler Upgrade Scheme runs until March 2028, but funding is allocated quarterly and can run out. Landlords with properties below EPC C should commission a retrofit assessment now, waiting until 2027 will mean higher installer demand and longer lead times. The data is clear: progress is real but glacial. The only way to accelerate it is to act before the next regulatory deadline catches up.