Landlords face £20bn refurbishment bill to meet EPC C targets

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.

Scale of refurbishment remains substantial

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.”

Landlords and property investors rely on refurbishment finance

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.