Landlords across the UK are under growing pressure to meet the government’s new Energy Performance Certificate (EPC) regulations, which are set to take effect by 2030. The government’s objective is for all rental properties to achieve at least a Band C EPC rating, meaning many landlords will need to invest heavily in property upgrades to comply.
At present, the average EPC rating for private rental properties in the UK is Band D, which means a significant number of landlords will be required to carry out costly and extensive renovations over the next five years. For those with older properties, such as Victorian terraces or pre-war homes, meeting the new efficiency standards will be even more difficult.
Financial Implications for Landlords
A recent Department for Business, Energy & Industrial Strategy (BEIS) report has highlighted the financial challenges landlords will encounter. Upgrading a Band D property to Band C is estimated to cost between £5,000 and £10,000, depending on the scale of improvements needed. For landlords with multiple rental properties, these expenses could quickly escalate.
While financial assistance is available, such as the Boiler Upgrade Scheme, many landlords are concerned that these initiatives fail to cover the full costs. Additionally, navigating the complex application processes for grants can be overwhelming, particularly for smaller landlords who may lack the necessary resources.
Difficulties in Retrofitting Older Properties
Landlords who own historic buildings or period homes face even greater obstacles. Retrofitting older properties to modern energy efficiency standards often requires extensive renovations, including better insulation, window replacements, and heating system upgrades. These challenges are further compounded by a shortage of skilled tradespeople and ongoing supply chain disruptions.
Jason Harris-Cohen, Managing Director of LandlordBuyer, commented on the issue:
“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.”
Calls for a More Flexible Approach
Instead of abolishing the 2030 deadline, Harris-Cohen suggests a phased approach to ease the financial and logistical burden on landlords.
“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.”
Given the diverse range of rental properties across the UK, from modern flats to centuries-old homes, landlords argue that a one-size-fits-all approach is impractical. Clearer government guidance and tailored support are needed to help property owners navigate the transition.
As the 2030 deadline draws closer, landlords continue to call for greater financial support, clearer policies, and a phased strategy to achieving EPC compliance. These measures would not only reduce the financial burden on landlords but also contribute to the wider goal of improving energy efficiency in the private rental sector.
