Government Energy Performance Certificate (EPC) proposals are now the leading reason landlords plan to sell, as energy efficiency pressures reshape the private rented sector (PRS), research from Pegasus Insight revealed.
According to Pegasus Insight’s Q2 2025 Landlord Trends report, 38% of landlords intended to sell at least one property in the next 12 months, with EPC requirements cited more frequently than any other factor.
This marks a shift from previous years, when tax and interest rates were landlords’ main concerns.
The data highlighted the scale of the issue: 56% of landlords owned at least one property rated ‘D’, and 20% had properties rated ‘E’, ‘F’ or ‘G’.
On average, 42% of rental stock across portfolios failed to reach EPC ‘C’.
Larger landlords were most affected, with 78% of those owning 11 or more properties holding an average of 9.2 homes rated below ‘C’.
Mark Long, founder and director at Pegasus Insight, said: “Energy efficiency rules are now a decisive factor in landlords’ business decisions. With around half of rental stock still below the target EPC threshold, the cost and complexity of upgrades are prompting many to rethink their portfolios.
“This is a pivotal moment for the sector: the ambition to improve energy standards is welcome, but without clearer guidance and practical support, there’s a real risk that good landlords will simply choose to exit the market rather than invest.”
