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Published: 19 June 2025

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More than 1.8 million privately rented homes in England remain below the government's proposed minimum energy efficiency standard of EPC band C, according to new analysis by property acquisition firm LandlordBuyer. The data highlights the scale of the retrofit challenge facing landlords ahead of the anticipated 2028 compliance deadline.

Drawing on the latest figures from the Ministry of Housing, Communities and Local Government (MHCLG) and the EPC Register, LandlordBuyer reports that just 42.3% of privately rented homes in England currently achieve an EPC rating of C or above. As of Q2 2025, 1.82 million rental properties are still rated D or lower, with many requiring substantial improvements. Estimates suggest the average cost to upgrade a D-rated home to C is between £7,400 and £10,000, depending on region and property type.

The analysis also reveals marked regional disparities. In London, 56.1% of private rented homes meet the C threshold, but around 310,000 remain below standard. In contrast, the south west reports just 37% compliance, with 210,000 homes below band C. In the north of England, the situation is more acute.

In the North West, 33.9% of homes are C-rated or higher, leaving around 290,000 below target. In Yorkshire and the Humber, only 32.8% meet the standard, with 265,000 homes falling short.

Given that the average private landlord owns 1.4 properties, the cumulative cost of meeting the 2028 EPC requirement could exceed £15 billion across the sector. This has raised concerns about the financial burden on landlords and possible implications for tenants. 

“With just three years to meet the government’s EPC band C target, over 1.8 million privately rented homes still fall short of the required energy efficiency standard,” said Jason Harris-Cohen, managing director at LandlordBuyer. “This represents a significant retrofit challenge for landlords, many of whom face difficult decisions between absorbing costly upgrade expenses, raising rents, or exiting the market altogether.”

Harris-Cohen continued: “The regional disparities in compliance also highlight the need for targeted support and clear government enforcement timelines. Without urgent action and financial incentives, both landlords and tenants risk being caught in a difficult position, with landlords struggling with affordability and tenants facing higher energy bills.

“LandlordBuyer is committed to helping landlords navigate this evolving landscape by offering fast, chain-free sales options, enabling smarter investment and exit strategies in a rapidly changing market.”

The impact of lower EPC ratings extends to tenants. Households in EPC D-rated homes can expect to pay an estimated £420 more per year in energy costs compared to those in EPC C-rated properties.

While the government has signalled its intention to enforce the new minimum standard, a firm legislative timetable has yet to be confirmed. In response, LandlordBuyer is calling for clearer guidance from the Department for Levelling Up, Housing and Communities (DLUHC), including financial incentives for retrofit works, timelines for enforcement, and collaboration with local authorities to identify vulnerable stock and assist landlords with compliance.

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Published: 18 June 2025

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The average stay in a first home is just four and a half years, compared to eight years for second or third homes, according to new research from Santander UK, with many buyers compromising on space and location, prompting an early move.

Despite the saying ‘home is where the heart is,’ a quarter of first-time owners say they have no emotional attachment and regard their initial property more as a stepping stone. This contrasts with older generations, where 20% of Brits over 80 still live in their first home.

Space is a major factor influencing early moves. Santander’s data shows more than half (51%) of first-time buyers choose a studio or a home with one to two bedrooms to get on the property ladder. This happens even though 18% of these buyers have at least one dependent in 2024.

Location also plays a key role, with 67% of first-time buyers purchasing in neighbourhoods unfamiliar to them. This results from a shortage of suitable properties and affordability challenges, according to Santander.

The reasons driving homeowners to become next-time buyers include the need for:

More space (37%)

A better location (18%) 

Closer proximity to family (18%)

A garden (14%)

“My first home will have a special place in my heart forever, but I understand the drive to become a ‘next-time buyer’ all too well," comments Ruby Rose Eadie, mother of two and lifestyle influencer. "We knew that our first home would be a stepping stone as like so many buyers we compromised on size to be able to afford to get on to the property ladder in the first place. While it has been right for us for three years, it has become clear with our latest arrival and as our family has grown that we now need more space," 

"While moving up the ladder can be difficult, I don’t think it compares to affording that first property, and I’m so glad we compromised and took the chance to buy a property knowing it would be a home ‘for now’ rather than a home ‘forever,’ when we did.”

David Morris, head of homes at Santander UK, noted, “While many of us might feel sentimental about the day we got our first set of keys, the new wave of more savvy first-time owners seems to be increasingly pragmatic about their first home purchase.

"Given the ever-present affordability challenges faced by today’s first-time buyers, many are finding that the only way to get onto the housing ladder is by making compromises on space or location. Once that first foot is secure, their pragmatism is paying off, as many find they can quickly move on to a property better suited to their long-term needs.

“Checking that you can port your mortgage product and getting to grips with the cost of moving up the ladder are key for those buyers already looking one step ahead.”

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Published: 13 June 2025

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Bradford currently tops the table, with six-bed HMOs in the city yielding 15.2% on average.

New analysis from HMO management platform COHO has revealed that larger HMOs deliver higher rental yields across England, with six-bedroom properties achieving the most favourable returns. The findings highlight a clear link between property size and profitability, despite the greater upfront investment required.

Based on current market data, three-bedroom HMOs in England generate an average yield of 7.1%. This figure is derived from an average asking price of £302,546 and a typical monthly rent of £593 per room.

However, yields rise considerably with an extra bedroom. Four-bedroom HMOs currently offer an average yield of 8.5%, supported by an asking price of £336,252, only slightly above that of a three-bed property.

Yields are strongest for five- and six-bedroom HMOs, both averaging 8.7% across England.

City-level yields outpacing the national average

In some cities, returns are significantly higher. Bradford leads the way, where six-bedroom HMOs produce an average yield of 15.2%. This is based on an average property price of £228,750 and monthly rental income of £482 per room.

Liverpool and Leicester also perform well, with average six-bed HMO yields of 10.8% and 10.1% respectively.

Bradford also offers the highest average yield for five-bed HMOs at 10.1%, followed by Leicester at 10% and Leeds at 9.8%.

Liverpool ranks highest for four-bedroom HMOs, delivering average yields of 11.9%, ahead of Sheffield (10.2%) and Nottingham (9.6%).

Meanwhile, the strongest three-bedroom HMO yields are found in Newcastle at 10.7%, followed by Manchester (9.8%) and Liverpool (9.3%).

“The most profitable HMOs are located in cities in or towards the north of England where property prices are significantly lower than the likes of London and the south,” said Vann Vogstad, founder and CEO of COHO. “And while London landlords benefit from a much higher monthly rental income, it’s still not enough to offset the large upfront investment to an extent that will bring yields on par with those available in the likes of Bradford or Liverpool.”

Co-living: a potential solution for Southern Landlords

While landlords in the north may achieve strong returns with traditional HMOs, a new model is emerging that may offer better potential in southern markets: co-living.

“Co-living is distinct from HMOs in a number of ways, not least the way in which they are conceived, designed, and managed,” explained Vogstad. “Co-living is, much like the build-to-rent sector, marketed towards well-employed young professionals who are willing to pay a rental premium in order to live in a top quality property with likeminded housemates, onsite amenities and flexible tenancies that suit the world of nomadic lifestyles and remote working.

“For London’s landlords, this presents a massive opportunity. If you can provide a high-spec property with strong on-site services and amenities, you are able to charge significantly higher rents than those typically associated with HMOs. What’s more, a well-branded co-living development can be easily replicated in other locations, even other cities, enabling landlords to build a strong portfolio of co-living assets.

“It’s certainly worth thinking about. While HMO landlords in the north can enjoy incredible yields by delivering nothing more than what HMO tenants expect, in the south it might be time to delve into the unexpected to start attracting a whole new demographic of tenants, otherwise known as the next generation of housemates.”

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Published: 09 June 2025

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"The government’s decision not to share the Renters’ Rights Bill Justice Impact Test raises serious questions about transparency and accountability"
- Dr Neil Cobbold - Reapit

The government has declined to publish the Justice Impact Test for the Renters’ Rights Bill, a document that outlines how proposed legislation could affect the UK’s courts and tribunals.

Property technology company Reapit submitted a request to access the test as part of its correspondence with the Ministry of Housing, Communities and Local Government (MHCLG). The Justice Impact Test is a standard government process that departments must complete when proposed changes are expected to impact the justice system. It includes projections on case volumes and any anticipated changes to legal aid requirements. The completed assessment is submitted to the Ministry of Justice.

In a formal response, Baroness Taylor, parliamentary under-secretary of state at the MHCLG, rejected the request, stating: “Justice Impact Assessments are internal government documents which are not routinely published, and therefore I should note that we will not be able to share them with you.”

Baroness Taylor added that MHCLG is working in partnership with the Ministry of Justice and HM Courts and Tribunals Service to plan for the implementation of the proposed reforms, noting: “In the longer term, we expect our reforms to reduce the volume of court possession claims, as only those cases where there is a clear, well-evidenced ground for possession will be able to proceed.”

Despite this, Reapit maintains that the information should be made available to the public. The company argues that withholding the test limits transparency and hampers the ability of stakeholders to assess the full impact of the Renters’ Rights Bill.

“The government’s decision not to share the Renters’ Rights Bill Justice Impact Test raises serious questions about transparency and accountability," comments Dr Neil Cobbold, commercial director at Reapit UKI (pictured). "The estimate of changes in the number of court and tribunal cases is a vital tool for understanding how the legislation will affect the property sector – including case volumes – and whether the justice infrastructure is in place to support the change,"

He added, "With limited time left for parliamentarians to scrutinise the Bill, the refusal to publish this information will stifle meaningful debate. Landlords, tenants, letting agents and legal professionals all need clarity to assess how the Renters’ Rights Bill will impact their operations and access to justice.”