State of the PRS update: Focus on energy efficiency

As autumn approaches we are preparing for a seismic shift in the way we run our businesses, with the Renters’ Rights Bill set to gain Royal Assent, and rumours swirling on potential tax changes. So how are landlords feeling as we approach this time of change?

Our regular State of the PRS update collates key data points to track developments in the rental market and give you an up-to-date snapshot of the sector. It’s also a great tool for those of you supporting our campaigns work by lobbying local authorities and MPs, with our handy downloadable infographic bringing together all the relevant figures in one place.

Key findings

While Renters’ Rights may be dominating the headlines, it is energy efficiency proposals put forward in the second quarter of 2025 that are having a major impact on landlord sentiment, with many raising concerns about the potential cost of improvements and – as a ressult – their future in the sector.

Standards improving

Drawing on the latest NRLA research and data from the English Housing Survey, we can see improvements are already being made when it comes to energy efficiency in the PRS, with 49% of homes in England and 38% in Wales now EPC C or above, up from 19% and 22% just over a decade ago.

Cost complications

Financing potential improvements is causing huge headaches, with 42% of landlords saying cost barriers are ‘very’ or ‘extremely’ significant, and 22% saying categorically that they will be unable to carry out work without access to grant funding. The bad news is that, even where funding is available, landlords have had issues, with 70% of landlords using them saying they had bad experiences with grant schemes.

Older homes

Another issue posing a major challenge is UKs aging housing stock. A quarter of all PRS properties were built before the end of the Second World War and, as a result, are much more difficult to bring up to the proposed new standards – presenting complex challenges for landlords who need to balance investment with affordability for tenants.

You can find out more on all these points by downloading out infographic using the button below.

What’s the latest on energy efficiency?

The Government has now completed its consultations into to how energy performance certificates (EPCs) are calculated and new minimum energy efficiency standards (MEES). In the short video below, NRLA public affairs office Mia Rotaru gives you a quick lowdown on where we are with these and other related consultations currently in the pipeline.