Private landlords face an average bill of £10,000 to hit government EPC C targets by 2030, according to new research.

An estimated 2.7 million rental properties will need some form of energy efficiency retrofitting across the PRS in England, Scotland and Wales, adding up to about £24.03 billion, says Reapit, which reviewed a representative sample of rental properties managed using its platform.

It based the estimate on historic retrofitting costs from the 2021-2022 English Housing Survey and adjusted for inflation.

A recent survey for Energy UK found that 35% of respondents didn’t make any energy efficiency improvements last year because they could not afford the upfront costs. Reapit says this suggests support in meeting these costs will be crucial in convincing some landlords to retrofit their properties.  

The letting agency tech provider estimates that more than 880,000 PRS properties could be lost to the sector if landlords instead choose to sell properties with an EPC rating of E, F, or G, particularly as the retrofitting costs per property with such ratings could exceed £14,000.

Cost caps

A similar policy dropped by the previous government in 2023 contained several exemptions and cost caps.

It remains to be seen if any similar measures will be announced, as this level of detail is currently missing from the latest proposals, says Steve Richmond (pictured), general manager UK&I at Reapit.

He believes bringing forward proposals that require such a high spend without outlining the support measures on offer to achieve these ambitious targets risks spooking landlords, meaning that urgent clarity is needed.

Adds Richmond: “The last thing tenants need is more landlords selling up. Not only will it push up rental prices, but tenants will also face the stress and upheaval of moving.”