Private landlords in England are confronting a monumental bill to meet proposed government energy efficiency targets. New research from epIMS, an energy efficiency platform, estimates that £19.8 billion will be needed to ensure rental properties achieve a minimum EPC rating of C by 2030, sparking concern among property owners.
The findings reveal that over half of the nation’s rental properties fall short of this standard, with the highest costs expected in London. Landlords are now exploring cost-effective ways to meet the looming deadline while balancing their financial challenges.
Over 2.5 million homes fall below required standard
According to epIMS, there are 4.9 million private rental properties in England, and 50.1%—equating to 2.5 million homes—currently have an EPC rating below C. The government’s research indicates the average cost to upgrade each property is £8,000. This translates to a staggering nationwide cost of £19.8 billion to bring all substandard properties in line with proposed requirements.
Craig Cooper, COO of epIMS, commented on the scale of the challenge: “Labour has proposed a deadline of 2030 for all landlords to bring their rental properties up to a minimum EPC rating of C. This is an ambitious plan that is yet to be enshrined in law, but it shows clear intent from the government which means a legal minimum rating is almost certainly going to be introduced at some point in the near future.”
Regional differences also highlight the disparity in costs. Landlords in London face the highest overall bill at £4.7 billion, as the capital is home to 1.2 million private rental properties—double any other region. The average upgrade cost in London, estimated at £9,000 per property, further exacerbates the financial strain.
Regional breakdown of upgrade costs
Outside London, landlords in the West Midlands face the next largest bill at £2.2 billion, where the average upgrade cost is £8,148 per property. The South East and North West are tied for third, both requiring £2.1 billion to meet the proposed standards. Other significant costs include:
- East Midlands: £2 billion
- East of England: £2 billion
- South West: £1.7 billion
- Yorkshire & Humber: £1.5 billion
In contrast, landlords in the North East face the smallest total cost at £517 million, with an average upgrade cost of £5,000 per property and only 103,394 sub-C-rated homes.
Craig Cooper encouraged landlords to take proactive steps: “We have identified a number of energy-saving solutions that, when tailored specifically to each property, are cost-effective, unbiased, and evidence-based. These utilise the latest energy-saving technology to enable landlords to achieve a rating of C or above with minimum expenditure.”
Can landlords meet the challenge?
While the proposed standards aim to reduce carbon emissions and lower energy bills for tenants, landlords are increasingly concerned about the financial implications. The research suggests that compliance with these rules is not just a policy goal but an inevitable requirement.
Yet, questions remain: How can landlords effectively upgrade properties without being financially overburdened? Will government incentives or support schemes be introduced to offset the costs?
