Just three months after tenants caught a modest break on their bills, the energy price cap is heading in the other direction. From 1 July, Ofgem is expected to confirm a 13% increase, pushing the typical annual dual-fuel bill from £1,641 to around £1,850. That’s an extra £209 a year, or roughly £17 more per month. In one move, the April reduction is wiped out entirely.
For letting agents and landlords, this isn’t just a headline to log and move past. It has direct implications for tenant affordability, arrears risk, and the conversations you’ll be having with your portfolio over the coming weeks.
A summer increase sounds softer than a winter one, and in usage terms, it is. Most tenants won’t be running the heating in July, so the immediate hit may feel manageable. But forecasters are already flagging further upward pressure in Q4 if wholesale volatility continues, which means this could be the opening act of a harder autumn and winter for households on standard variable tariffs.
Agents and landlords who communicate now, while the news is fresh and the pain is limited, will be better placed than those who wait until tenants are already stretched.
The energy price cap covers around 19 million customer accounts on default or standard variable tariffs. Crucially, it sets the maximum unit rate, not the total bill. Usage still determines the final cost, which means tenants in poorly insulated or inefficient properties will feel this rise far more acutely than those in well-performing homes.
For landlords with properties at the lower end of the EPC scale, this is another signal pointing in the same direction: energy efficiency isn’t just a compliance issue anymore. It’s a direct factor in tenant cost, satisfaction, and retention.
Energy debt across the UK was already at record levels earlier this year. A 13% jump in unit costs won’t ease that. For letting agents, it’s worth identifying which tenants are most exposed: larger properties, lower EPC ratings, those already showing signs of financial pressure.
Reaching out proactively, whether that’s signposting Warm Home Discount eligibility, encouraging smart meter adoption, or pointing to switching options, costs little but positions you as a genuinely supportive partner rather than a passive observer.
The energy price cap has now swung 7% down in April and 13% up in July within the same calendar year. That level of volatility isn’t a one-off. It reflects a market still structurally tied to international wholesale prices and global events.
The properties best protected from that volatility are the ones where energy performance has been invested in. The cap will keep moving. What landlords and agents can control is how efficiently their homes sit behind it.
Ofgem’s official announcement is due today. But the direction is already clear, and the time to get ahead of it is now.
HomeOwners Alliance, Will Energy Prices Go Down In 2026?, https://hoa.org.uk/advice/guides-for-homeowners/for-owners/will-energy-prices-go-down/
EDF Energy, Energy Price Cap Predictions & Forecast, https://www.edfenergy.com/gas-and-electricity/price-cap-predictions
Energy Saving Trust, Energy price cap explained, https://energysavingtrust.org.uk/what-is-the-energy-price-cap/
End Fuel Poverty Coalition, Ofgem Price Cap, https://www.endfuelpoverty.org.uk/about-fuel-poverty/ofgem-price-cap/
House of Commons Library, Gas and electricity prices during the ‘energy crisis’ and beyond, https://commonslibrary.parliament.uk/research-briefings/cbp-9714/
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