Private landlords face a £21.4 billion bill to bring their properties up to the proposed EPC C rating by 2030.

New research by Zero Deposit reveals that the average cost of bringing a rental property up to a band C rating is estimated to be £8,000, with 2,681,905 homes needing improvement across England; 55% of all privately rented homes currently hold an EPC rating of D or below, with about 12% of these holding an E, F or G rating.

Yorkshire and the Humber has the highest number of privately rented homes with an EPC rating of D or less, with 74% of homes potentially requiring an upgrade by 2030. The West Midlands (65%) and East Midlands (62%) also rank highly, with London home to the lowest number, where just 38% of all privately rented homes are rated D or below.

However, the research also shows that the capital’s landlords could face the highest costs in bringing their portfolios up to standard, where the average bill for improvement climbs to £9,000 per property.

Billions

Sam Reynolds (pictured), CEO of Zero Deposit, says while the government’s move to make an EPC rating of C mandatory by 2030 is positive, the mandatory obligation is likely to cost private landlords billions. He adds: “Yet another cost incurred due to legislative changes will likely leave a bad taste in the mouths of the nation’s landlords and it could well be the final straw for many who are sat on the fence as to their future within the sector.”

Landwood Group recently reported that 95% of building surveyors, recovery experts, private landlords, investors and developers quizzed in an online survey were sceptical about hitting the target and reported that landlords were deeply concerned about the new policy’s viability.

The government has promised, although not yet delivered, a scheme that will contribute up to £30,000 towards a landlords's property uprade costs although there are substantial strings attached. This includes that properties must qualifiying geographically and in terms of the tenants and their incomes, and only applies 100% to a landlord's first property.