Private landlords in the UK are expected to face a combined £21.455 billion in costs to meet new Energy Performance Certificate (EPC) requirements by 2030, according to recent research. These changes will affect approximately 2.68 million rental homes across England that currently fall below the required EPC rating of C, significantly tightening the energy efficiency standards for the private rental sector.

Ryan Cancellara, Energy Expert at Essential Green Skills, commented: "This isn't just a matter of regulation – it’s a significant financial undertaking. With 55% of privately rented homes rated D or lower, many landlords will need to invest an average of £8,000 per property. In regions like London, this cost could rise to £9,000 per home, representing a substantial challenge for property owners who are already facing increasing pressures."

Over 2.6 Million Homes in England Require Upgrades


According to the latest figures, around 2,681,905 rental homes in England will require upgrades to meet the new EPC standards. Yorkshire and the Humber faces the highest rate of homes needing improvement, with 74% of rental properties rated D or below. The total cost for landlords in London alone could amount to £3.798 billion, the highest in the country.

Cancellara continued: "Landlords are a critical part of the housing sector, and while improving energy efficiency is essential, the scale of investment required is vast. It’s imperative that landlords are supported in making these changes, or we risk losing rental properties in an already tight housing market."

A Financial Crossroad for the Rental Market

These new EPC standards are a key part of the government’s goal to reduce carbon emissions and increase sustainability in housing. However, many landlords are concerned about the feasibility of meeting these financial demands, with some considering leaving the rental sector altogether.

"Energy efficiency is non-negotiable for a sustainable future," added Cancellara, "but we need to balance that with the reality of the current financial pressures landlords are under. If landlords are forced out of the market, it could exacerbate the housing shortage at a time when availability is already an issue."

Government Consultations and Financial Concerns

The government's Warm Homes Plan, including the Warm Homes: Local Grant, provides up to £30,000 for energy upgrades but is mainly targeted at low-income tenants or specific areas, excluding many landlords. Those who qualify must agree not to raise rents due to these upgrades. An upcoming consultation, expected by the end of 2024, will explore additional support measures, but concerns remain about the financial burden as the 2030 deadline approaches.