Landlords face a near-£20 billion refurbishment challenge after new analysis found more than half of private rented homes still fall below the government’s minimum EPC C target, despite the deadline being pushed back to 2030. The findings underline the scale of investment now required and the practical funding decisions landlords must make over the next five years.
Research by Octane Capital shows that 50.1 percent of privately rented homes in England currently hold an EPC rating of D or below. Applied across the private rented sector, that equates to 2.48 million properties requiring improvement to remain compliant once the new rules take effect.
Based on a median upgrade cost of £8,017 per home, the total refurbishment bill for landlords stands at £19.9 billion.
EPC C compliance costs for UK landlords remain substantial
The government’s decision to delay the EPC C requirement for existing rental homes from 2028 to 2030 has eased immediate pressure, but it has not reduced the overall scale of the work required. For many landlords, the extra time simply shifts difficult financial decisions further down the line.
Octane Capital’s analysis shows London facing the largest total refurbishment cost, with an estimated £4.3 billion needed to upgrade rental stock across the capital. The North West and South East follow closely behind, with projected improvement costs of £2.3 billion and £2.2 billion respectively.
In practical terms, many properties will not need radical retrofitting, but they will still require multiple upgrades. Typical works include topping up loft insulation, adding cavity wall insulation, replacing older boilers with modern condensing models, installing double or secondary glazing, fitting smart heating controls and switching to LED lighting throughout.
Jonathan Samuels, chief executive of Octane Capital, said funding capacity will be just as important as technical compliance. “For many landlords, meeting the EPC C requirement won’t just come down to recognising what needs to be done, but having the ability to fund the work and deliver it efficiently, particularly where properties require more extensive upgrades,” he said.
Buy-to-let investors weigh funding options for energy upgrades
The figures highlight a growing divide between newer, more energy-efficient rental stock and older homes that were never designed with modern standards in mind. These older properties make up a significant share of the private rented sector and will often require staged improvements rather than a single fix.
Octane Capital notes that refurbishment finance is likely to play an increasingly central role as landlords plan upgrades. Short-term refurbishment loans allow investors to fund works quickly, manage cash flow and bring properties back to market sooner, either for letting or sale.
According to the lender, the average 12-month refurbishment loan, based on a current renovation cost of £79,306, now totals £12,612. That figure is slightly down from £12,834 a year ago, reflecting modest easing in borrowing costs, but it remains a meaningful expense that landlords must factor into long-term returns.
For portfolio landlords in particular, the challenge is cumulative. A landlord with ten sub-C properties could be facing an upgrade bill of around £80,000, before financing costs, professional fees or void periods are taken into account.
Private rented sector faces long-term investment pressure
While ministers have framed EPC reform as a necessary step towards net zero, the burden of delivery continues to fall largely on private landlords. There is still limited clarity on whether further grant support or tax incentives will be introduced at scale, leaving many investors to plan on the assumption that costs will be self-funded.
The data also raises questions about future supply. Some landlords may choose to exit rather than absorb upgrade costs, particularly where properties already face higher mortgage rates and tighter regulation.
Editor’s view
The EPC C deadline may feel distant, but the numbers suggest landlords who delay planning are likely to face higher costs and fewer options later. With £20bn of work still outstanding, the real issue is not whether upgrades happen, but how smoothly the sector can absorb them without further shrinking rental supply. The next two years will be critical in determining which landlords stay ahead of the curve.
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance
Published: 30 January 2026
Sources: Octane Capital research; UK government EPC policy statements
Related reading: Call for faster EPC upgrades as draughty rentals push up energy bills
