Landlords across the UK are facing mounting challenges as they work towards meeting the government’s Energy Performance Certificate (EPC) regulations, set to be enforced by 2030. Under these new requirements, all rental properties must achieve a minimum Band C EPC rating, meaning significant property upgrades will be necessary for many landlords.
At present, the average EPC rating in the UK’s private rental sector is Band D, which means a large number of properties will require substantial renovations to comply with the new efficiency standards within the next five years. The challenge is even more demanding for landlords who own older homes, such as Victorian and pre-war properties, which often require major structural upgrades to meet modern standards. Some landlords are already exploring options to exit the market, with services like LandlordBuyers providing solutions for those looking to sell quickly without the hassle of costly upgrades.
According to a report by the Department for Business, Energy & Industrial Strategy (BEIS), the cost of upgrading a rental property from Band D to Band C is estimated to be between £5,000 and £10,000, depending on the level of work required. For landlords managing multiple properties, these costs could accumulate rapidly, putting significant financial strain on their portfolios.
Although some financial assistance is available through schemes such as the Boiler Upgrade Scheme, landlords have raised concerns that these grants do not fully cover the expenses involved. Additionally, the complex application process for such incentives poses a further hurdle, particularly for small-scale landlords with fewer resources.
Landlords managing older housing stock, such as period homes and historic buildings, face additional difficulties. Retrofitting these properties to improve insulation, upgrade windows, and install energy-efficient heating systems is not only costly but also logistically challenging. Compounding these issues, a shortage of skilled tradespeople and supply chain disruptions could further delay necessary upgrades.
Jason Harris-Cohen, Managing Director of LandlordBuyer, addressed the difficulties landlords are facing:
“The 2030 deadline for EPC compliance is an ambitious target. While improving energy efficiency is an important step in reducing carbon emissions, retrofitting older properties can be complex, time-consuming, and expensive. Without more comprehensive support from the government, it will be a challenge for many landlords to meet the deadline.”
Rather than removing the 2030 target altogether, Harris-Cohen advocates for a staggered approach to implementation.
“A phased timeline, starting with properties that have the lowest EPC ratings, would give landlords more time to manage the financial and logistical challenges,” he says. “Additionally, offering more substantial financial incentives, such as tax breaks or increased grants, would help landlords make the necessary improvements.”
With rental properties ranging from modern apartments to centuries-old houses, landlords argue that a one-size-fits-all policy is not the best approach. Instead, they are calling for the government to provide clearer guidance and additional support to help ease the transition.
As the 2030 deadline approaches, landlords are pushing for practical solutions, including greater financial assistance, clearer regulations, and a phased compliance strategy. These measures would help reduce financial strain on landlords while supporting the UK’s broader energy efficiency goals.
