More than half of private renters, or 58%, say they are “less likely” to look at a rental property if it had an energy performance certificate rating of D or below, data from Shawbrook shows.  

Young renters are more focused on energy efficiency, with 72% of renters between 18 to 34 saying they always check the EPC rating of a property before making any decisions, according to the bank’s Confronting the EPC Challenge report.  

This compares to 52% of those over 55 years old.    

Energy costs have jumped over the last 12 months, driven by supply shortages sparked by the war in Ukraine.  

The study says: “With energy costs expected to stay high this winter and beyond, energy efficiency has become an increasing priority for many homeowners and tenants.”  

EPC ratings range from A to G, with C judged as acceptable. The average EPC rating of a home in England and Wales is D. 

Government proposals put forward in 2020, say all new tenancies from April 2025 in the private rented sector must have an EPC ranging from A to C, while existing tenancies must meet this standard by April 2028.  

These plans are part of the UK’s target to slash greenhouse emissions by 78% by 2035 compared to 1990 levels, and hit net zero by 2050.  

But Shawbrook’s report also “highlighted a significant knowledge gap surrounding energy efficiency ratings”.   

Just 7% of respondents felt they ‘know a lot’ about EPC requirements, while 27% of tenants say they have heard of EPC requirements but ‘don’t know anything about them’.   

A further 27% had never heard of them, while 56% of renters admitted to not knowing the rating of their current property.   

Shawbrook managing director of real estate Emma Cox says: “With an unprecedented energy crisis, the energy efficiency rating of our homes has become increasingly important.   

“However, the research also indicates that we, as an industry still have much to do in terms of educating those in the rental market on this issue. Interestingly young renters are paying closer attention to the energy efficiency of their properties.   

“While we don’t know whether this is driven more by cost or an interest in sustainability, landlords should assume that it’s only going to increase in importance for tenants.    

“Landlords are already making changes to their properties to support their tenants and bring their properties up to the standard that is likely to soon be expected. However, this can be a costly exercise, particularly with the increasing costs of materials and labour.”