More than half of all UK rental homes do not comply with the new energy efficiency standards that will come into law in just three years.

The research comes as landlords are being warned that they could expect to face a massive bill.

The new data shows that 56% of properties in the country do not have enough insulation to qualify for a so-called EPC rating of C or above.

In 2025 the Government's new rules will mean that any home rented out under a new contract needs to have a C rating or above, and in 2028 all rentals have to be up to that level.

Now, data compiled for LandTech, a property data platform, shows that 57% of socially rented homes have an EPC rating of C or above, meaning they meet the standard.

Bury Times:

However, it means that more than four in 10 homes rented out by councils will need to upgrade their insulation, leaving cash-strapped councils facing massive construction bills.

But, private landlords are expected to face an even bigger bill as data shows that nearly two-thirds (64%) of private rentals do not live up to the standards.

Co-founder of LandTech Jonny Britton said: “The concern for the future is that cash-strapped local authorities still have much to do to reach the minimum standards, with costs likely to run into the millions in order to upgrade social rented housing stock.”

“Although a cost burden to landlords, our hope is that the rush to insulate and improve below C rated properties leads to a mini boom to the trades specialising in these areas, and the reduction of energy bills for tenants.

“The biggest winner is of course the environment, so it’s within everyone’s interest to get behind the cause immediately.”

What is the energy efficiency target?

The energy efficiency target is a scheme that scores buildings on how well a home is insulated and keeps heat in.

Homes get a rating of between A and G for the EPC system, with A+ being the best score that a home can receive.