New funding for EPC improvements – but it’s not enough for landlords
2 years ago | 19 comments
Landlords face £21 billion bill to meet new EPC standards
12:02 AM, 1st October 2024, 2 years ago
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Landlords in the UK are facing a substantial financial burden to comply with the government’s proposed energy efficiency standards.
According to research by Zero Deposit, the tenancy deposit alternative, it will cost the nation’s landlords £21.455 billion to bring their properties up to the required EPC C rating by 2030.
Net Zero minister Ed Miliband has announced plans to consult on raising the minimum energy efficiency standard for both private and social rented homes.
This means landlords will need to ensure their properties have a minimum EPC rating of C, compared to the current requirement of E.
Bill focussed on the welfare of tenants
The firm’s managing director, Sam Reynolds, said: “Our new Labour Government has been quick out of the blocks with respect to rental market reform, with the Renters’ Rights Bill widely focussed on the welfare of tenants, with little consideration for those who provide the rental accommodation we so sorely need.
“The latest move to make an EPC rating of C mandatory by 2030 is much the same in this respect.
“Whilst it is, of course, a positive to improve the energy efficiency of rental homes within the PRS, the mandatory obligation to make these improvements is likely to cost private landlords billions.”
He adds: “Yet another cost incurred due to legislative changes will likely leave a bad taste in the mouths of the nation’s landlords and it could well be the final straw for many who are sat on the fence as to their future within the sector.”
Private rented homes fall short
The research by Zero Deposit shows that a significant number of private rented homes currently fall short of the proposed standard.
More than half of all PRS homes have an EPC rating of D or below, with around 12% rated E, F or G.
Yorkshire and the Humber has the highest proportion of homes requiring upgrades, with 74% potentially needing to meet the EPC C standard by 2030.
While London has the lowest proportion of homes rated D or below, landlords in the capital could face the highest costs in bringing their properties up to standard.
Cost of upgrading a rental property
The average cost of upgrading a rental property to a band C EPC rating is estimated to be £8,000.
With millions of homes requiring improvement across England, the total cost to landlords could reach £21.455 billion.
In London, the average cost of improvement is even higher, reaching £9,000 per property.
This means London landlords alone could face a bill of £3.798 billion to meet the new energy efficiency requirements.
Even in the North East, where the cost is lowest, landlords are facing a total of £666.6 million to bring their homes up to an EPC C rating.
Tags:
climate change, energy costs, energy efficiency, EPC rating, government policy, Landlords, Private Rented Sector, Property investment, Rental market, sustainability, UK Housing Market
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Member Since February 2024 - Comments: 31
11:32 AM, 2nd October 2024, About 2 years ago
I don’t think you’ll ever find the truth behind Labours policies, but if an economist wants to stimulate the market place, they don’t destroy the PRS in the process. Johnson implemented Net Zero without an assessment, and Labour are implementing typical 70s Labour policies without any consideration whatsoever for their effects. Is it their hatred of landlords that is greater than their contempt for those who would normally be their traditional voters. Either way, this and the last government have proved their inability to do the job we ask of them.
Member Since May 2018 - Comments: 1999
11:48 AM, 2nd October 2024, About 2 years ago
Reply to the comment left by Mike Thomas at 02/10/2024 – 11:32
They do seem to be driven by the media rather than by housing policies that make sense and it’s hard to be sure what they understand.
Angela Rayner didn’t get any qualifications that I know of, but she certainly knows how to game the system to buy a council house on the cheap. And HMRC will have explained the relevant tax implications to her by now.
Ed Miliband must be capable of understanding that the EPC system isn’t fit for purpose because apparently he got an A-level in physics. Whether he does understand it, or cares is another matter.
I’m not sure what Keir Starmer understands beyond the legal system and the consequences for public servants of accepting freebies like the use of penthouses, but he’s a lawyer and must understand that the RRB is going to clog up the courts if it isn’t amended from the draft.
There are plenty of tenants renting properties below band C who don’t want to be evicted from their homes and who will understand that labour’s proposals will restrict their choice.
Member Since February 2023 - Comments: 5
8:09 PM, 3rd October 2024, About 2 years ago
The current EPC system isn’t fit for purpose.
My 1 bed rental apartment was a D, but the identical apartments on either side were C, so I employed the assessor who graded them to assess mine and no surprise when he gave it a C. So, I did nothing to it and it went from a C to a D.
It’s now on the market and my other rentals will also be soon as I’ve had enough of being a landlord and will invest my hard earned cash elsewhere.
Member Since July 2013 - Comments: 90
1:44 PM, 5th October 2024, About 2 years ago
As a Landlord I don’t see this as a problem. Why shouldn’t we have EPC at C? We’ve known about it long enough. Why should the Tenant pay?
If the finance does not stack up then sell up. Hopefully to me. In Leicestershire or Yorkshire
I’ve just offered to buy a property but said that I needed an allowance for various issues including EPC.
This is a landlord’s problem not a tenant’s. I sold properties when there was to be an upgrade to F which I could not afford.
Except for the Renter’s Bill which needs some serious amendments, if we can’t stand the heat we should get out of the kitchen