Almost £20bn of investment will be required to bring England’s private rented homes up to the Government’s minimum EPC C standard by 2030, analysis from Octane Capital reveals.
The Government recently extended the deadline for all private rental properties to meet an EPC C rating from 2028 to 2030.
However, Octane Capital said the scale of work required across the sector remains substantial, with refurbishment finance expected to play a key role in helping landlords meet the revised target.
Octane Capital analysed Government data on the proportion of private rented dwellings currently rated below EPC Band C and applied this to total private rented sector stock levels across England. It then assessed the typical cost of works required to upgrade a property to EPC C in order to calculate the overall investment needed.
BIG INVESTMENT
The analysis found that 50.1% of privately rented homes in England currently fall below the EPC C threshold. This equates to an estimated 2,479,757 properties requiring energy efficiency improvements.
Based on a median upgrade cost of £8,017 per home, the total refurbishment investment required to bring all privately rented homes up to EPC C by 2030 is estimated at £19.9bn.
CAPITAL CRISIS
London is expected to require the highest overall level of investment, with refurbishment costs across the capital estimated at £4.3bn. The North West and South East also face significant upgrade bills, with £2.3bn required in the North West and £2.2bn in the South East.
At the other end of the scale, the North East is thought to require the lowest total level of investment, with refurbishment costs estimated at £503m.
Octane Capital said older properties are particularly likely to struggle to achieve stronger EPC ratings, often due to a combination of poor insulation, inefficient or ageing heating systems, single-glazed windows, draughts, limited heating controls and outdated lighting.
UPGRADE WORKS
In many cases, EPC performance can be improved through targeted upgrade works, including topping up loft insulation, installing cavity wall insulation where appropriate, upgrading to modern condensing boilers, fitting double or secondary glazing, installing smart heating controls such as thermostats and thermostatic radiator valves, and switching to LED lighting throughout the property.
With more than half of England’s private rented homes requiring some level of improvement, Octane Capital said access to refurbishment finance will be critical in enabling landlords to complete works efficiently and at scale.
FIT FOR PURPOSE
Jonathan Samuels, CEO of Octane Capital, says: “While the Government has extended the deadline for the private rented sector to reach EPC C, this research shows that the scale of refurbishment required remains substantial, with close to £20bn worth of improvements needed across England alone.
“For many landlords, meeting the EPC C requirement won’t just come down to recognising what needs to be done, but having the ability to fund the work and deliver it efficiently, particularly where properties require more extensive upgrades.
“This is why refurbishment finance will continue to play such an important role over the coming years, helping landlords access the speed and flexibility required to improve stock, manage costs, and ensure properties remain compliant and fit for purpose ahead of the 2030 deadline.”
