The proportion of homes in England and Wales with an EPC rating of C or above has risen by just one percentage point in the past year, to 44%. That is the smallest annual increase since 2021, according to data from the Ministry of Housing, Communities and Local Government, as reported by GOV.UK. For the typical homeowner, this stagnation is not a statistic, it is a direct hit on the household budget.
What a stagnant EPC costs a 3-bed semi
Energy Saving Trust data shows that moving from an EPC D to a C on a typical 3-bed semi saves around £450 a year on gas and electricity. With the price cap rising again this October, Ofgem confirmed a 2.4% increase, adding roughly £63 to the average bill, every rating point matters. A home stuck at D is paying for heat that leaks through walls, lofts, and single-glazed windows. The government’s own figures show that 56% of homes in England and Wales are still rated D or below. That is 14.5 million properties.
Who qualifies, and who doesn’t
The Great British Insulation Scheme, launched in 2023, offers free or subsidised cavity wall and loft insulation. But eligibility depends partly on the property’s EPC rating. Homes already rated C or above often cannot access the scheme. Those rated E, F, or G are prioritised. The catch: many of the worst-performing homes are hard to treat, solid walls, no loft space, listed buildings, so the grants often go unclaimed. Meanwhile, the 44% of homes at D or E sit in a grey zone: too efficient for the deepest subsidies, too leaky for the cheapest bills.
What this misses, the real cost of inaction
The government’s 2035 target requires all homes to reach EPC C. At the current pace of improvement, roughly 1% a year, that target will be missed by 2048, according to projections by the UK Energy Research Centre. The risk includes a missed deadline. Estate agents report that homes rated D or below now take 12% longer to sell on average, according to data from Rightmove. Buyers are factoring in future upgrade costs. For homeowners planning to move in the next five years, an EPC stuck at D is a liability.
What to do, and by when
Start with the cheapest fix: loft insulation. The Energy Saving Trust says topping up from 100mm to 270mm costs around £300 and saves £35 a year. Cavity wall insulation runs £500–£1,000 and saves £200 a year. For solid walls, internal insulation costs more, typically £4,000–£8,000, but can lift a property from D to C in one go. The Great British Insulation Scheme is open until March 2026. Applications for the Boiler Upgrade Scheme, which covers heat pumps, close on 31 March 2027. Households on standard variable tariffs can check their EPC on gov.uk and apply for grants through the Simple Energy Advice service. The window is narrowing.
Frequently Asked Questions
Costs vary widely. Loft insulation and cavity wall fill typically cost £500–£1,500 combined and can lift a property one band. Solid wall insulation runs £4,000–£8,000. The Energy Saving Trust estimates an average £3,000–£5,000 for a full D-to-C package on a 3-bed semi, though grants can reduce this.
The government has proposed making EPC C a minimum for all rented homes by 2030 and for owner-occupied homes by 2035, but no legislation has passed yet. Market pressure from buyers already discounts D-rated homes, so improving now is less risky than waiting.
