Private landlords across England are facing a massive challenge as they prepare to meet new energy efficiency requirements for rental properties. Experts estimate that almost £20 billion of investment will be required to bring homes up to the government’s new standards.
While ministers have extended the deadline for privately rented homes to achieve an EPC rating of C from 2028 to 2030, the scale of work needed remains extremely high. Landlords are now being urged to plan ahead to avoid being caught out by the approaching compliance deadline.
Octane Capital recently carried out research to quantify just how many properties will need upgrading. Their analysis examined the proportion of private rental homes that currently fall below the EPC C standard.
By applying this proportion to the total number of dwellings in the private rented sector, Octane calculated the approximate number of homes requiring refurbishment. Their findings revealed a startling figure: more than half of all privately rented homes in England—around 50.1%—fail to meet the new standard.
This equates to roughly 2.48 million rental properties that will need energy efficiency improvements before the 2030 deadline. The scale of investment required is enormous, particularly for landlords who own multiple properties or operate on narrow profit margins.
Octane Capital also examined the average cost of upgrading a home to meet EPC C. Based on current estimates, the typical cost per property is £8,017. Multiplying this across all affected homes brings the total investment required across the private rented sector to around £19.9 billion.
London is expected to be the most expensive region for landlords, with refurbishment costs projected to reach £4.3 billion. Other major cities such as Birmingham, Manchester, and Leeds are also set to see significant expenditure, though costs will vary depending on the age and condition of local housing stock.
Many of the homes below the EPC C standard are older properties, often built before modern energy efficiency regulations existed. These buildings are likely to have poor insulation, outdated boilers, single glazing, and inefficient lighting systems.
Typical improvements for these homes include adding or improving loft insulation, installing cavity wall insulation, and fitting modern condensing boilers. In some cases, more extensive measures such as solid wall insulation may be required, which can be disruptive and costly.
Landlords will also need to consider double or secondary glazing for windows, smart heating controls to manage energy use, and replacing old light fittings with LED alternatives. Such upgrades not only help meet EPC standards but also reduce tenants’ energy bills.
The government has argued that these improvements are necessary to reduce carbon emissions and tackle climate change, while also ensuring tenants have warm and safe homes. However, for many landlords, the cost and logistics of carrying out the work remain a major concern.
Jonathan Samuels, chief executive of Octane Capital, commented that complying with EPC C requirements is not just about knowing what work is needed. Landlords also need the financial resources and practical ability to carry out the upgrades efficiently and correctly.
For properties requiring major refurbishment, the challenge is even greater. Long periods of construction, higher labour costs, and the need to minimise disruption for tenants all add complexity to the task.
Some landlords may struggle to fund the necessary work, especially those who own multiple properties or older buildings that need extensive improvements. In some cases, this could lead landlords to consider selling their properties rather than investing in costly upgrades.
A reduction in available rental homes could place additional pressure on the private rental market, potentially driving rents higher and limiting housing options for tenants. This highlights the wider implications of EPC compliance beyond individual properties.
Despite these challenges, supporters of the government’s policy argue that the benefits of improved energy efficiency are significant. Homes with higher EPC ratings are cheaper to run, more comfortable, and better for the environment.
Tenants in upgraded homes are likely to enjoy lower energy bills, improved heating, and better overall living conditions. Over time, widespread improvements across the sector could also contribute to national carbon reduction targets.
Financial support and grant schemes may be available to help landlords with some of the work, but property experts say more clarity and guidance will be needed to ensure the sector can meet the 2030 deadline.
The research underscores the urgency for landlords to begin planning and budgeting for upgrades as soon as possible. Delaying action could result in higher costs and increased competition for labour and materials as the deadline approaches.
Some experts predict a surge in refurbishment activity over the next few years, particularly in areas with older housing stock. Early action may allow landlords to spread costs over several years and minimise disruption to tenants.
Landlords will also need to keep up to date with changing regulations and technical standards to ensure work is compliant and effective. This includes understanding the types of insulation, heating systems, and energy-efficient measures that meet EPC C requirements.
In addition to regulatory compliance, landlords may find that EPC upgrades increase the long-term value of their properties and attract more tenants who are concerned about energy efficiency and lower bills.
However, balancing the cost of improvements with rental income will remain a key challenge, particularly in markets where rents are already capped or constrained.
Some landlords may require professional advice to plan their upgrades efficiently, ensuring the work meets regulations while remaining cost-effective. Companies specialising in energy efficiency and property refurbishment may see increased demand in the coming years.
Overall, the challenge of meeting EPC C targets highlights the scale of investment and effort required across England’s private rented sector. Landlords, tenants, and policy-makers will all need to work together to ensure homes are upgraded successfully.
With over 2 million properties currently below the required standard, the next decade will see widespread renovation activity as landlords invest in energy efficiency and move towards a more sustainable and modern rental sector.
Failure to plan ahead could have serious consequences for landlords, tenants, and the wider housing market, emphasising the importance of early action, careful budgeting, and strategic property management.
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