Two-thirds of PRS homes need energy efficiency upgrades

The cost to upgrade homes in the private rented sector (PRS) to meet an energy performance certificate rating of C by 2030 will be £8.3bn.

According to data science firm Outra, two-thirds of rented homes – that’s around 2.4 million properties – in England, Scotland and Wales will need to be upgraded.

The regional breakdown of homes requiring upgrading shows that the East Midlands has the highest percentage needing work, at 66%.

The region is followed by the West Midlands and Yorkshire and the Humber.

Cost of initiatives

The founder of Outra, Giles Mackay, said: “The cost of initiatives such as the Energy Bills Support Scheme at £11.9bn is something of a sticking plaster when we could be spending money to inject greater energy efficiency into our built environment and avoiding the repeat costs of support.

“Government has chosen to show the stick and promise the carrot, with green finance schemes to follow.

“However, the latter is the critical piece to get right.”

He adds: “The lessons of previous green finance schemes is that they must be simple and advantageous to the landlord, who ultimately will be the one required to take action.

“The scheme must avoid the complexities of obtaining consents and costly valuations and other frustrations to the process.”

£6.6 billion to help pay for upgrades

While the estimated cost of upgrades is £8.3 billion, the government will offer an extra £6.6 billion to help pay for energy efficiency initiatives.

The Outra findings suggest that each home upgrade will cost £3,500.

Of the homes that require upgrading, 49% are located in London and the South East where private rents increased by 9.7% and 7.8% respectively in the year to July.

A Warm Homes Plan will offer loans and grants to promote investment in domestic energy efficiency improvements.