World Environment Day, marked each year on 5 June, is a useful reminder of the important role housing continues to play in the UK’s environmental progress.
Reducing emissions from homes is no longer a question of long-term ambition. It is one of the more immediate and practical opportunities available, particularly given the scale of the challenge. Residential buildings account for around 20% of the UK’s greenhouse gas emissions, which underlines how important this sector will be in achieving net zero.
Within that, the private rented sector has a particularly significant role to play. In practice, improving the energy efficiency of homes is where much of the meaningful progress will come from, bringing together environmental goals, lower household bills and the long-term condition of housing. It is an area where progress has clear, tangible outcomes for both tenants and landlords, provided the pathway forward remains realistic and well supported.
There are already indications that landlords understand both the direction of travel and the benefits involved. Our annual Landlord Leaders research shows that 70% had upgraded properties to EPC band C before the latest requirements were confirmed, despite 97% experiencing rising operating costs across the sector. That is a positive signal that demonstrates a willingness to invest, even in a challenging economic environment, but relying on that level of resilience alone is unlikely to be sustainable at scale without clearer, more supportive conditions in place.
The wider picture shows the extent of what still needs to be done. While progress has been made in recent years, more than half of UK homes are still below EPC band C, meaning millions of properties will need to be upgraded if future regulatory and climate targets are to be met. This places the focus firmly on the existing housing stock, where improving efficiency will depend on steady, long-term investment rather than short-term change.
Energy efficiency sits at the centre of this transition. Energy Performance Certificates remain the most consistent framework for assessing how a home performs, offering a practical way for landlords to understand both energy costs and environmental impact. They are not without limitations though, and there is ongoing discussion about how they might evolve, but they continue to provide a common reference point for decisions about investment and improvement.
The benefits of improving efficiency are not abstract – they are felt directly by tenants and landlords alike. Homes which are more efficient are generally cheaper to run, and upgrading a property can reduce annual energy bills by hundreds of pounds depending on its starting point, which is particularly relevant against the backdrop of continued cost pressures. This has a direct bearing on fuel poverty, where the condition of housing plays a central role.
Recent government figures show that around 9.4% of households in England are living in fuel poverty, often in homes that are less energy efficient and more expensive to heat. Improving the performance of these properties is one of the most effective ways to address that challenge. It lowers the amount of energy required to maintain a comfortable home and makes bills more manageable, while also contributing to emissions reductions.
There are also broader benefits that are sometimes less visible in policy discussions. Homes that are properly insulated and well maintained tend to be warmer and drier, which supports better health and overall wellbeing. This reduces the likelihood of issues associated with cold or damp living conditions and has a wider positive impact on public services, as well as on tenant experience. Improvements to energy efficiency therefore reach beyond environmental outcomes and into the overall quality of housing provision.
New build housing offers a clear illustration of what can be achieved when energy efficiency is embedded from the outset. Modern homes built to current standards are significantly more efficient than older properties and can reduce carbon emissions by up to 74%, while also offering lower running costs for occupants. These homes demonstrate what is possible when design, materials and technology are aligned with environmental objectives.
The challenge, however, lies predominantly with the existing housing stock. The UK has some of the oldest homes in Europe, and improving them requires a sustained focus on retrofit rather than new supply alone. This is where landlords become critical to the overall picture. They own and manage a large proportion of these homes and are therefore central to how quickly and effectively improvements can be delivered at scale.
The progress already made across the private rented sector shows that many landlords are prepared to act. However, goodwill alone will not be enough to deliver the level of change required. Scaling up improvements across millions of homes requires clarity, confidence and practical support.
Clarity is particularly important. Landlords need a clear and consistent understanding of the standards they are working towards, as well as realistic timeframes for achieving them. This allows investment decisions to be planned in a way that balances regulatory requirements with the financial realities of maintaining a portfolio. Confidence also plays a role, especially where significant upfront costs are involved and returns are realised over a longer period.
Alongside this, access to reliable information and appropriate financial support will remain key. Not all properties are the same, and the measures needed to improve them can vary widely. Providing landlords with clear guidance on what works, and where investment will have the greatest impact, will help ensure that progress is both effective and sustainable.
In this context, EPC C should not be viewed as a simple compliance threshold. It is better understood as a step towards a more efficient and resilient housing system. Homes that meet higher standards are typically more attractive to tenants, more cost effective to run and better positioned to meet future regulatory changes. That creates a stronger long-term outlook for both landlords and the sector as a whole.
The opportunity for housing to contribute to environmental progress is clear. Improvements to energy efficiency offer a practical route to reducing emissions, lowering household costs and improving living conditions. However, delivering that at scale will depend on continued collaboration between policymakers, lenders and landlords.
Housing decarbonisation cannot happen without landlords. Ensuring they have the clarity, confidence and support to continue investing will be essential, not only for the future of the private rented sector, but for the UK’s wider environmental ambitions.
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