Landlords now expect to spend an average of £11,713 for each rental property that needs to reach EPC C, according to the latest Pegasus Insight research, sharpening the finance question around the government’s proposed 2030 minimum standard.
The new figure matters because it sits well above what many landlords say is commercially workable. Pegasus found 60 percent own at least one property below EPC C, while landlords themselves put the financially viable limit nearer £9,000 per property. That leaves an affordability gap of more than £2,700 before any work has even started.
For landlords, the issue is no longer whether EPC upgrades are coming back into focus, but how they will be funded. Recent lender launches and further-advance products suggest banks can see the demand. The harder question is whether enough landlords will still proceed if grant support stays patchy and borrowing costs remain elevated.
Retrofit costs are moving ahead of what landlords will tolerate
Pegasus said nearly two-thirds of affected landlords still intend to carry out the work needed to hit EPC C. That is up from the previous quarter and shows the sector has not given up on compliance. But willingness and affordability are not the same thing.
Most landlords expect to use savings for at least part of the bill. Others are looking at grants, green finance, additional borrowing or equity release. That fits with Landlord Knowledge’s recent report on Paragon’s data on landlords drawing £2.37bn for EPC works, which pointed to retrofit costs becoming a live funding market rather than a future policy debate.
The pressure is building because landlords have already had several years of mixed signals on energy rules. A clearer official direction on EPC reform still matters. Pegasus describes its Landlord Trends research as a long-running quarterly read on private landlord sentiment, and this quarter’s message is simple: the sector expects the bill to be high and wants help bridging it.
Lenders have an opening, but landlords still need certainty
The timing is awkward. Landlords have been told repeatedly to plan for higher energy standards, yet many still do not know which route will offer the best return – remortgage, further advance, specialist retrofit finance or staged works funded from cashflow.
This follows Landlord Knowledge’s June report on The Mortgage Works launching an EPC support pilot, which suggested lenders were preparing for a much larger upgrade cycle ahead of 2030. The latest Pegasus numbers show why. If average costs are already being put close to £12,000, landlords with older stock or multiple lower-rated homes may have to decide whether to improve, refinance or sell.
There is also a practical tenant angle. Pegasus said 44 percent of tenants consider EPC ratings important when choosing a home. That does not mean every upgrade pays back in rent, but it does mean poorer-performing properties risk becoming harder to let as tenants become more selective.
What this means for landlords
- If you own pre-1990 stock: get an updated EPC improvement path now and price each measure before lenders and contractors get busier.
- Watch for: more lenders packaging further advances, green products and broker-led retrofit funding around the proposed 2030 deadline.
- Bottom line: landlords are still willing to upgrade, but many will need either cheaper finance or firmer policy certainty before committing.
Editor’s view
The headline figure is not just a cost story. It is a warning that EPC policy will keep colliding with landlord cashflow unless ministers match ambition with a workable funding route. The market looks ready to lend, but too many landlords still lack a clear business case.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 25 June 2026
Sources: Pegasus Insight
Related reading: Paragon says landlords drew £2.37bn for EPC works
🏠 EPC Rules for Landlords: What You Need to Know
Minimum EPC C required by 2030 – new assessment rules from late 2027
