The energy price cap will rise by £63 on 1 July, the third increase this year. For the 11 million households in private rented accommodation, that means an average annual bill of £1,762, according to Ofgem’s latest figures. But for the 2.3 million landlords in England and Wales, the cap rise is only the headline. The real story is the looming 2028 deadline for minimum EPC standard C in all new tenancies, and the cost of getting there before the money runs out.
As Landlord Today reports, many buy-to-let investors are still not preparing. The gap between awareness and action is wide, and expensive.
Who pays for the cap rise, tenant or landlord?
Legally, the tenant pays the energy bill. But practically, the cap rise shifts the economics of renting. A property with a D or E EPC rating costs roughly £300–£400 more a year to heat than a C-rated equivalent, according to Energy Saving Trust estimates. That difference is now embedded in the baseline. Tenants in draughty homes pay more every month, and they are increasingly voting with their feet.
Rightmove data from early 2025 showed that listings for EPC C and above received 40% more enquiries than those rated D or E. Landlords who delay retrofitting risk longer void periods, lower rent, or both. The cap rise simply makes that gap more visible on a monthly statement.
What it costs a typical 3-bed semi to get to C
The typical 3-bed semi in the private rented sector is a 1930s or 1960s cavity-wall build. To move from EPC D to C, the work usually includes:
- Loft insulation top-up to 300mm, about £500–£700.
- Cavity-wall insulation where feasible, £700–£1,200.
- Double or triple glazing for single-glazed windows, £3,000–£6,000 for a standard house.
- A new gas boiler or heat pump, £2,000–£10,000 depending on system.
- Draught-proofing and smart controls, £200–£500.
Total: £5,000–£15,000 per property. That is not pocket change for a landlord with a portfolio of 10 units. But the alternative, forced sale or conversion to holiday let, is often more costly, especially with Capital Gains Tax at 24% for higher-rate sellers.
The grant gap: who pays?
The government’s Great British Insulation Scheme and the Boiler Upgrade Scheme are available to homeowners and landlords, but with conditions. Landlords can access the £7,500 heat pump grant only if they own the property and the tenant is not responsible for the heating system. The ECO4 scheme also covers some insulation measures for low-income tenants, but eligibility is tight.
Yet a recent survey by the National Residential Landlords Association found that only 12% of landlords had applied for any grant in the past two years. The catch is that many schemes require the landlord to contribute at least 30% of the cost. And with mortgage rates still above 4% for most buy-to-let products, cash flow is tight.
What to do and by when
Landlords with EPC D or below should book an updated assessment before September 2025. The 2028 deadline for new tenancies means any property let after 1 January 2028 must have a valid EPC C, or face fines of up to £30,000. Properties already tenanted under a rolling contract before that date are exempt until the tenancy ends, but that window is closing.
The cheapest first step is a free or low-cost energy audit from your local authority or a certified assessor. Many councils now offer retrofit coordination services under the Home Upgrade Grant phase 2. The second step is to prioritise insulation: it pays back fastest and improves EPC points most efficiently. Heat pumps can wait until the boiler fails.
For homeowners reading this as tenants: ask your landlord for the EPC certificate. If it is below C, you have use. The cap rise makes inefficient housing a monthly cost you cannot ignore, and the law is on your side.
Frequently Asked Questions
Landlords cannot raise rent purely because of the cap rise, but they may factor higher energy costs into a Section 13 notice. If your property has a low EPC rating, your landlord faces a bigger incentive to retrofit, or to sell. You can request the EPC certificate and ask about planned upgrades.
Yes, under the Boiler Upgrade Scheme, landlords can apply for a £7,500 grant toward an air-source heat pump, provided the property is not a new build and the tenant is not responsible for the heating system. You must also have a valid EPC with no outstanding recommendations for loft or cavity-wall insulation. Apply through Ofgem's portal.
