Landlords across the UK are facing mounting pressure to comply with new Energy Performance Certificate (EPC) standards, due to take effect by 2030. Under the government’s plan, all rental properties must achieve a minimum Band C rating, meaning that many landlords will need to undertake significant property upgrades in the coming years.
Currently, the average EPC rating for private rental properties in the UK stands at Band D, meaning that a large proportion of landlords must invest in costly upgrades to bring their properties in line with government requirements. The challenge is particularly daunting for those who own older properties, such as Victorian terraces and pre-war homes, which often require major renovations to improve their energy efficiency.
Rising Costs and Limited Financial Support
A report from the Department for Business, Energy & Industrial Strategy (BEIS) has highlighted the significant financial implications for landlords. The cost of upgrading a Band D property to Band C is estimated to range between £5,000 and £10,000, depending on the level of work required. For landlords with multiple properties, these expenses could quickly add up.
While government support schemes such as the Boiler Upgrade Scheme are available, many landlords feel that these incentives are insufficient to cover the full cost of essential improvements. Furthermore, the application process for these grants is often complex, making it particularly challenging for smaller landlords with limited resources.
Older Properties Present Additional Obstacles
The challenge is even greater for landlords with heritage or period properties, where meeting modern energy efficiency standards can be both costly and technically demanding. Retrofitting these homes often involves installing insulation, replacing windows, and upgrading heating systems, all of which can be hindered by a shortage of skilled tradespeople and ongoing supply chain disruptions.
Jason Harris-Cohen, Managing Director of LandlordBuyer, addressed the difficulties landlords face:
“The 2030 deadline for EPC compliance is an ambitious target. While improving energy efficiency is an important step in reducing carbon emissions, retrofitting older properties can be complex, time-consuming, and expensive. Without more comprehensive support from the government, it will be a challenge for many landlords to meet the deadline.”
Advocating for a Practical Solution
Rather than abandoning the 2030 deadline, Harris-Cohen suggests a more practical and phased approach to allow landlords more time to comply.
“A phased timeline, starting with properties that have the lowest EPC ratings, would give landlords more time to manage the financial and logistical challenges,” he explains. “Additionally, offering more substantial financial incentives, such as tax breaks or increased grants, would help landlords make the necessary improvements.”
With the UK’s private rental market consisting of a diverse mix of properties, from new-build apartments to historic homes, many landlords argue that a one-size-fits-all strategy will not work. Greater government support, clear guidance, and tailored policies are needed to ensure that landlords can meet the new energy efficiency standards effectively.
As the 2030 deadline approaches, landlords are urging policymakers to introduce practical measures, including increased financial assistance, clearer guidelines, and a phased rollout of EPC regulations. These steps would not only help alleviate financial strain on landlords but also contribute to the wider objective of creating a more energy-efficient rental sector.
