Tower Hamlets tops new home energy efficiency index, while rural areas fall behind
New analysis of government energy performance certificate (EPC) data has revealed the areas with the highest and lowest proportion of energy-efficient homes across England and Wales in 2025.
The Home Energy Efficiency Index, created by online bathroom, kitchen and heating retailer Plumbworld, analysed the latest full-year government EPC dataset for England and Wales, covering domestic properties that received an Energy Performance Certificate during 2025.
The study focused on properties rated A to C, which are widely recognised as the most energy-efficient EPC bands, and compared these against the total number of EPC-rated homes in each local authority.
Tower Hamlets was found to have the highest proportion of energy-efficient homes, with 83.99% of properties receiving an EPC in 2025 rated A, B or C. Milton Keynes followed in second place at 80.79%, while Salford ranked third with 80.71%.
At the other end of the scale, the Isles of Scilly recorded the lowest proportion of energy-efficient homes, with just 14.10% of EPC-rated properties achieving an A to C rating. North Norfolk ranked as the second least efficient area at 40.84%, followed by Gwynedd at 43.16%.
The findings reveal a clear divide between major towns, cities and London boroughs, which tend to benefit from newer housing stock and a higher proportion of flats, and more rural or coastal areas, where older detached homes are often more difficult and expensive to upgrade.
Key findings from the research include:
London boroughs and major cities dominate the most energy-efficient areas
Rural and coastal locations consistently rank among the least efficient
The gap between the best and worst areas exceeds 70 percentage points
A-rated homes remain extremely rare nationwide, with most efficient homes sitting in EPC bands B and C
New-build developments and flats are major contributors to higher efficiency scores
Top 10 most energy-efficient areas in England and Wales
Tower Hamlets, 83.99%
Milton Keynes, 80.79%
Salford, 80.71%
Manchester, 78.38%
Hackney, 77.20%
Southwark, 76.93%
Telford and Wrekin, 76.92%
Stevenage, 76.75%
Bracknell Forest, 76.28%
Knowsley, 76.12%
Top 10 least energy-efficient areas in England and Wales
Isles of Scilly, 14.10%
North Norfolk, 40.84%
Gwynedd, 43.16%
Westmorland and Furness, 43.36%
Castle Point, 45.73%
Staffordshire Moorlands, 46.36%
Pembrokeshire, 46.44%
Derbyshire Dales, 46.85%
Carmarthenshire, 46.90%
Conwy, 47.05%
Why are some areas more efficient than others?
Urban areas tend to perform better due to the type and age of housing stock. Flats and apartments are naturally more energy efficient because shared walls reduce heat loss, while newer homes benefit from modern insulation standards, double glazing and more efficient heating systems.
In contrast, rural and coastal areas often contain older detached homes that are more difficult and expensive to upgrade. These properties may rely on outdated heating systems or lack access to mains gas, increasing both energy use and heating costs.
