Landlords face £21 billion bill to meet new EPC standards

Landlords face £21 billion bill to meet new EPC standards

0:02 AM, 1st October 2024, About 3 hours ago 1

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Landlords in the UK are facing a substantial financial burden to comply with the government’s proposed energy efficiency standards.

According to research by Zero Deposit, the tenancy deposit alternative, it will cost the nation’s landlords £21.455 billion to bring their properties up to the required EPC C rating by 2030.

Net Zero minister Ed Miliband has announced plans to consult on raising the minimum energy efficiency standard for both private and social rented homes.

This means landlords will need to ensure their properties have a minimum EPC rating of C, compared to the current requirement of E.

Bill focussed on the welfare of tenants

The firm’s managing director, Sam Reynolds, said: “Our new Labour Government has been quick out of the blocks with respect to rental market reform, with the Renters’ Rights Bill widely focussed on the welfare of tenants, with little consideration for those who provide the rental accommodation we so sorely need.

“The latest move to make an EPC rating of C mandatory by 2030 is much the same in this respect.

“Whilst it is, of course, a positive to improve the energy efficiency of rental homes within the PRS, the mandatory obligation to make these improvements is likely to cost private landlords billions.”

He adds: “Yet another cost incurred due to legislative changes will likely leave a bad taste in the mouths of the nation’s landlords and it could well be the final straw for many who are sat on the fence as to their future within the sector.”

Private rented homes fall short

The research by Zero Deposit shows that a significant number of private rented homes currently fall short of the proposed standard.

More than half of all PRS homes have an EPC rating of D or below, with around 12% rated E, F or G.

Yorkshire and the Humber has the highest proportion of homes requiring upgrades, with 74% potentially needing to meet the EPC C standard by 2030.

While London has the lowest proportion of homes rated D or below, landlords in the capital could face the highest costs in bringing their properties up to standard.

Cost of upgrading a rental property

The average cost of upgrading a rental property to a band C EPC rating is estimated to be £8,000.

With millions of homes requiring improvement across England, the total cost to landlords could reach £21.455 billion.

In London, the average cost of improvement is even higher, reaching £9,000 per property.

This means London landlords alone could face a bill of £3.798 billion to meet the new energy efficiency requirements.

Even in the North East, where the cost is lowest, landlords are facing a total of £666.6 million to bring their homes up to an EPC C rating.


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Cider Drinker

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0:16 AM, 1st October 2024, About 3 hours ago

Whilst I think the number is questionable, Ministers should be in no doubt about who will pay.

It won’t be the landlords. At least, not in full. It must be the people that benefit from the (ahem) improvements. And that is, of course, the tenants.

Let’s hope Housing Benefit is increased to cover the higher rents.

It may already be too late to gain possession via Section 21 but there will be fewer rental properties by the end if the Loonies’ 5 years at the helm of the good ship HMS Asylum..

How long have we got left?

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