1.3 million private renters in England live in homes with EPC ratings of D or below. That is roughly one in five rented properties. The i Paper reports that these households could each save £200 a year on energy bills if their homes were upgraded to a C rating – yet the vast majority never see that money.
As The i Paper reports, the problem is structural: tenants cannot install loft insulation, cavity wall fill or double glazing without landlord permission. And landlords have little incentive to spend thousands on improvements when the benefit goes to someone else’s bill.
The legal gap that leaves renters cold
Since 2020, private landlords in England and Wales must ensure their properties meet at least an EPC rating of E. Below that, the property is legally unlettable. But a D rating – which is still leaky, draughty and expensive to heat – is perfectly legal. The government has proposed raising the minimum to C by 2028, but that deadline keeps slipping. The current target is 2028 for new tenancies and 2030 for existing ones. Until then, a D-rated home is fine by law.
Ofgem’s data shows the average gas-heated home rated D uses about 14,000 kWh per year, compared to 10,500 kWh for a C-rated home. At the current price cap of £1,568 for a typical dual-fuel household, that extra 3,500 kWh costs roughly £200. That £200 is the gap between a tenant’s reality and what is technically possible.
Who pays – and who decides
The economics are lopsided. A landlord might spend £2,000 on loft and cavity wall insulation for a mid-terrace house. The tenant saves £200 a year. But the tenant moves after 18 months on average, so the landlord never recoups the investment through higher rent – and the next tenant gets the benefit. The Energy Saving Trust estimates that full fabric upgrades for a typical 3-bed semi cost between £1,500 and £3,500. For a landlord with multiple properties, that is real money with no guaranteed return.
Government schemes such as ECO4 can cover some of the cost, but they require the landlord’s consent. The i Paper spoke to tenants who requested insulation through ECO4 only to be refused by landlords who did not want the disruption. The scheme also has strict eligibility criteria: the tenant must be on certain benefits, and the property must have a low EPC rating. Many D-rated homes do not qualify because they are not bad enough.
What this misses – and what could change
The catch is that the government’s own advisory body, the Climate Change Committee, has said that raising the minimum EPC standard to C for all rented homes by 2028 would save tenants £200–£300 a year and cut national carbon emissions by 2.5 MtCO2. Yet the Treasury has resisted because of the cost to landlords – an estimated £5,000–£10,000 per property for the worst-performing homes.
The i Paper’s investigation highlights a deeper problem: tenants have no legal mechanism to force upgrades unless the property is below E. The Renters’ Rights Bill currently going through Parliament includes a requirement for landlords to keep properties in a ‘decent condition’, but it does not explicitly mandate energy efficiency improvements. The bill is expected to pass later this year, but the energy provisions are vague.
For now, the message to tenants is blunt: if you live in a D-rated home, you are paying £200 a year more than you need to. You can ask your landlord to apply for ECO4 funding, but you cannot make them. The only real use is the EPC certificate on the property listing – and that is a rating the tenant cannot change.
What renters can do next
Check your EPC rating on gov.uk. If it is E or below, you have a legal case to demand upgrades. If it is D, you are in the grey zone. Contact your landlord in writing and ask them to apply for ECO4 funding through the Energy Saving Trust. Also check if your local council runs a ‘landlord licensing’ scheme – some councils require minimum energy standards above the national level.
If you are looking to rent, ask for the EPC certificate before you sign. A C-rated home will save you roughly £200 a year compared to a D – that is £17 a month. Over a two-year tenancy, it is £400 in your pocket. The i Paper’s story shows in the UK rental market, the person who pays the bill is rarely the person who decides how the home is built.
Frequently Asked Questions
Only if the property is rated EPC F or G, which is illegal to let. For D-rated homes, tenants have no legal right to demand upgrades. The government has proposed raising the minimum to C by 2028, but this has not yet become law.
ECO4 is a government scheme that funds insulation, boiler upgrades and heat pumps for low-income households. Tenants on certain benefits can apply, but the landlord must give written permission for the work. The scheme is administered by energy suppliers and can be accessed through the Energy Saving Trust.
