Landlords face an uphill battle to meet Labour’s 2030 EPC target – it should be 2042!

Landlords face an uphill battle to meet the Labour government’s 2030 target of all privately rented homes achieving an EPC rating of A-C, research reveals.

The data from Hamptons shows that if energy efficiency improvements continue at the current rate, it will take until 2042 for all rented homes to reach the desired standard – that’s 12 years beyond the proposed deadline.

This represents progress compared to the 89 years it would have taken at 2016 rates, partly due to landlords preparing for previous, now-scrapped, Conservative EPC plans.

To hit the 2030 goal, around 340,000 rented homes would need to improve their EPC rating to C or higher each year until then.

That’s triple the number of homes set to achieve this level in 2024.

‘Proposed energy efficiency rules’

Aneisha Beveridge, the head of research at Hamptons, said: “Successive changes to proposed energy efficiency rules have shifted the goalposts for landlords, some of whom face costs which can run into tens of thousands of pounds.

“Despite this, many investors have continued to improve the energy efficiency of their rental homes and we’re currently on track to see 100% of rental homes where an EPC A-C is viable, reach that rating within a generation.”

She adds: “To meet the government’s 2030 target, the same number of homes will need to see energy upgrades over the next five years as we’ve seen make improvements in the last 30 years.

“While a requirement for all rental homes to achieve an EPC A-C rating by 2030 is achievable at a stretch, landlords need adequate time and resources to meet it.

“It is essential landlords receive complete clarity on this target this year.”

55% of rented homes have an EPC rating of C

While 55% of privately rented properties now have an EPC rating of C or better, surpassing the 48% rate for owner-occupied homes, there are still challenges.

Half of homes previously rated D achieved at least a C rating upon reassessment this year, but just 9% of C-rated homes moved up to B or above.

Data suggests 3-4% of rented homes may be unable to reach an A-C rating, a figure that was previously higher due to changes in EPC methodology.

Hamptons says these properties are often older, cheaper, and located in the North of England, with higher rental yields.

The average tenant saving when upgrading a home from EPC D to C is £499 per year, a 76% increase since 2019.

For EPC E homes, the saving is £1,248.