£1.66 billion in EPC fines could be handed out if housing market fails to improve by 2030

If new government energy rules were enforced today, over £1.6 billion in fines could be handed out to homeowners whose properties don’t meet the proposed minimum efficiency standard.

New figures reveal that 39% of homes sold in England over the past year fall short of the EPC rating the government wants in place by 2030, a warning sign for those yet to make energy upgrades.

At the same time, more than 60% of homes that changed hands already meet or exceed the target, highlighting a shift in buyer preferences toward eco homes.

Buyers increasingly choose energy-efficient homes

By 2030, the government is requiring all houses that are sold or rented to have an EPC rating of 'C' or above or else face fines up to £5,000.

However, data from estate agents Benham and Reeves covering sales from April 2024 to March 2025 shows that only 61.3% of homes sold had EPC ratings that meet or surpass the government’s expected 2030 minimum standard.

This marks a steady 1.5% increase over the previous year, demonstrating growing buyer demand for greener homes, but concerns for those that are falling short of these targets.

London leads the way with 64.3% of sold homes hitting the mark, but other regions are closing the gap. The West Midlands, for example, experienced the largest growth with a 3.3% rise.

This trend reflects changing priorities, buyers are now weighing running costs and environmental impact alongside traditional factors like location and size.

A significant share of homes still fall short

Despite progress, 39% of homes sold do not meet the future minimum energy standard.

That means many properties require improvements such as better insulation, updated heating systems, or double glazing to comply.

This gap is most noticeable in Yorkshire and The Humber, where just 57.1% of homes sold meet the benchmark - the lowest across England.

As building regulations tighten, particularly with the introduction of the Future Homes Standard later this year, homes with poor energy performance may face challenges securing financing and could see falling market values.

Market shift means renovators must act now

With the government’s 2030 EPC deadline approaching, buyers want homes that are cheaper to run and better for the environment. Properties that don’t meet these rules risk losing value.

Renovators should focus on improving insulation, upgrading heating systems, and installing better windows to boost energy ratings and future-proof their homes.

Dr Niall McCarthy, Head of Policy at the Energy Efficiency Infrastructure Group, says: “With the government’s 2030 target approaching, the market is already adjusting. Buyers and investors value energy efficiency because it directly affects running costs and resale value. Properties that don’t meet these standards risk being left behind.”

Louise Irvine, Chief Executive of Energy Saving Trust, added: “Homeowners who plan energy efficiency improvements should start with simple but effective steps like improving insulation and upgrading heating systems. These not only reduce energy bills immediately but also help future-proof homes against upcoming regulations, making properties more attractive to buyers and lenders alike.”

Early upgrades can save money by cutting bills and avoiding costly last-minute fixes before 2030, or more importantly big fines.