Landlords would need to spend an average of £8,148 on upgrading their properties to bring EPCs to C, analysis from real estate consultancy Knight Frank has revealed.
The amount landlords need to invest varies, depending on the size and age of their existing property.
Homes with an EPC rating of D, for example, would typically need to spend £5,841 on the necessary improvements to move to a C-rating, with this figure increasing to average £14,107 for properties moving from a band F and more than trebling to £18,174 for those previously rated G.
It also varies by housing type, with flats averaging £5,869 versus an average £9,410 for houses. The current cost cap proposed is £15,000, although this is also being consulted on and whether to reduce this to £10,000 for those under an ‘affordability exemption’.
The Labour government has introduced the requirement that all rental properties across England and Wales must reach an EPC level of C by 2030.
Flora Harley, head of ESG research at Knight Frank, said: “This policy is not new. What needs to be different this time is a firm commitment that also sets out how the government is going to deliver this with both carrot and stick.
“Previous attempts have seen limited uptake for efficiency improvements and the recent news about the quality of wall insulation delivered is unlikely to help confidence in this.
“A clear, well thought-out and holistic approach is required. Finance also has a crucial role to play in enabling upgrades to be made. The discussion around property-linked finance could further enhance this. “
Heat pumps and policy push
The Boiler Upgrade Scheme (BUS) offers grants of up to £7,500 to cover part of the cost of replacing fossil fuel heating systems with a heat pump or biomass boiler.
Whilst the takeup of heat pumps has been lower in the UK than in other countries, 2024 saw a record number of installations, as there were 3,000 redemptions in October 2024 alone.
Overall, around 260,000 heat pumps are installed across the UK, while there is a target of reaching 600,000 by 2028.