0:01 AM, 30th January 2026, About 2 weeks ago 13
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The cost of refurbishing private rented properties to meet EPC C targets could cost nearly £20 billion, according to new research.
Data by Octane Capital reveals more than two million private rented sector (PRS) properties will require improvement to meet EPC C standards.
The government have announced all PRS properties will need to meet EPC C targets by 2030.
According to findings from Octane Capital, London is set to require the largest total refurbishment spend to bring private rental stock up to EPC C, with the total cost of improvements across the capital coming to £4.3bn.
The North-West and South-East also face substantial improvement costs, with an estimated £2.3bn required across the North-West and £2.2bn required across the South-East.
Jonathan Samuels, CEO of Octane Capital, says refurbishment finance will play an important role in upgrading PRS properties.
He said: “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 (£19.9bn) 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.”
The firm points out that many older PRS properties will struggle to meet EPC C targets, but upgrade work such as topping up loft insulation, installing a modern condensing boiler, or fitting double or secondary glazing can help achieve a stronger EPC rating.
As previously reported by Property118, many landlords and property investors rely on refurbishment finance, short-term loans tailored for renovation projects, to fund improvement works. This type of finance allows investors to accelerate refurbishments, bringing properties to market sooner and generating rental or sale income more quickly.
Octane adds that the average 12-month refurbishment loan, based on a current renovation cost of £79,306, now totals £12,612, down from £12,834 a year ago.
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Jill Church
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Member Since February 2024 - Comments: 65
10:16 AM, 30th January 2026, About 2 weeks ago
Would comment that fitting a new gas or oil boiler will not help when new EPC comes in October 2029.
Attended webinar yesterday re new EPC’s. Learnt this: new EPC will be prepared on a ‘Home Energy Model’ which is based on 3 sections.
1) Fabric of building – this is how well heat is retained, so insulation and double glazing. 2) Smart Readiness – tech such as solar panels and battery storage. 3) Heating system performance – eg heat pump. (This is modelled to deter any fossil fuels)
To achieve C rating under this HEM you have to meet requirements at 1) AND either 2) OR 3).
So you could have gas boiler as long as you have solar panels as well.
If you can’t meet the criteria you can apply for exemption (EPC assessor will advise) either Cost Cap, Solid Wall, Negative Impact, ie devalue property, or Third Party will not consent (tenant or leaseholder)
Reluctant Landlord
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Member Since September 2018 - Comments: 3438 - Articles: 5
10:48 AM, 30th January 2026, About 2 weeks ago
Reply to the comment left by Jill Church at 30/01/2026 – 10:16
the thing I am not entirely clear about is the cost cap.
If for example to reach a C is going to cost £12k (an example being not just solar panels but roof works to sustain the weight plus all other incidentals) does that mean you don’t have to do any of this as it is higher than the cap?
Or if there is a mix match of things that will be needed to get you to a C and in total they also go over the 10k cap, are you still expected to pick the option that costs say 6k and then go for an exemption (if for example the other work would be 4.5k and then take you over the total 10k cap?
Reluctant Landlord
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Member Since September 2018 - Comments: 3438 - Articles: 5
11:08 AM, 30th January 2026, About 2 weeks ago
All this does is just give many landlords a deadline. Not necessarily a deadline for upgrading/work – but more a full PRS exit deadline.
Passing properties on to family to continue letting now looks like a burden beyond.
Might be worth selling up and actually go work for the council. The income from the SL etc (that are suppose to be ringfenced) will be put towards more staff to justify the insatiable hunger to prosecute..
the irony – the persecuted good (ex) landlords become the rogue landlord hunters themselves….
Dylan Morris
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Member Since August 2016 - Comments: 1189
12:01 PM, 30th January 2026, About 2 weeks ago
I’ve got 2 rental flats in large modern developments around 100 flats in each site, height between 3 and 4 floors. No way can I install solar panels or heat pumps. Currently C rated EPC, there are electric panel heaters. If this new EPC calculation downgrades from a C to D what on earth can I do ?
Also got 3 houses with A rated highly efficient gas boilers and currently houses are C rated EPC. Gas boiler will bring down to a D. Can’t install heat pumps or solar panels as I just don’t have any money to spend at all. And I’m 66 years old now. My very modest savings won’t cover and I need this money for myself, for my retirement. What do I do ?
Jill Church
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Member Since February 2024 - Comments: 65
13:44 PM, 30th January 2026, About 2 weeks ago
Reply to the comment left by Dylan Morris at 30/01/2026 – 12:01
Chap running webinar said : If you get the properties epc tested before 2029 (even if the epc’s aren’t due) the assessor will use the current standard and as long as they meet A B or C, that epc will last for 10 years. You may get an exemption if you are unable to fit solar or heat pumps to flats, think there will quite a few landlords in same position.
Jill Church
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Member Since February 2024 - Comments: 65
14:01 PM, 30th January 2026, About 2 weeks ago
Reply to the comment left by Reluctant Landlord at 30/01/2026 – 10:48
If I understood correctly in webinar, £10k is total spend to cover everything. Say you spent £3k on first section “the fabric” so insulation and double glazing, then went for solar option and got quote to install panels, batteries and all associated costs, scaffold etc etc, all done as one project, if that quote was say £7.5k you could ask for exemption, as total spend would be over £10k. Chap also said you could include expenditure incurred in say 2027,2028 and 2029 in readiness for new epc, but to keep evidence of work done, and bills etc..so if any new double glazing needed…..
Think being an EPC assessor will be a good career to go into!
Dylan Morris
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Member Since August 2016 - Comments: 1189
14:34 PM, 30th January 2026, About 2 weeks ago
Reply to the comment left by Jill Church at 30/01/2026 – 13:44
Thanks for that Jill. Hopefully I can get same assessor to do EPC’s again in 2029 then he’s got to give same rating as he did before. (My EPC’s expire currently 2031). So I will be okay then until 2039 😁
graham mcauley
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Member Since August 2023 - Comments: 42
15:11 PM, 30th January 2026, About 2 weeks ago
Unless the cost of this stupidity is tax deductible I wont be doing it, simple
Jill Church
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Member Since February 2024 - Comments: 65
15:45 PM, 30th January 2026, About 2 weeks ago
Reply to the comment left by Dylan Morris at 30/01/2026 – 14:34
Hopefully!! But check with your assessor nearer the time in case things change or this little loop hole is closed! Could even be different government by then….
DPT
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Member Since October 2020 - Comments: 1106
8:05 AM, 1st February 2026, About A week ago
Reply to the comment left by Dylan Morris at 30/01/2026 – 14:34
I think the Government’s answer would be that if you dont have the money to operate at the standard we expect, sell it to someone who does.