Only 6% of tenants would pay more rent to help fund energy efficiency measures, despite 80% being in favour of their properties getting an upgrade to an EPC rating of C.

A new survey by Leaders Romans Group reveals a significant gap between tenant demand for greener rental properties and their willingness to pay for them, presenting a significant challenge for landlords who’ve been hit by rising retrofit costs and reduced government support for energy efficiency improvements.

One landlord said: “Someone needs to point out to the government that if the minimum EPC is raised to C, landlords like me will sell up rather than spend £50,000 upgrading the property to meet this threshold.

There are likely to be hundreds or thousands of landlords thinking the same thing.

"I simply can’t face the cost, so to be compliant with the law I will have to evict my tenants when that time comes. There are likely to be hundreds or thousands of landlords thinking the same thing.”

Labour target

The Labour government announced that all rental properties in England must achieve a minimum EPC rating of C by 2030. However, the Green Homes Grant government initiative was closed prematurely after reaching fewer than 10% of that target, while most remaining support, such as grants under the Energy Company Obligation, focus on low-income households.

According to RICS, the UK will need an investment of £250 billion to upgrade its 29 million homes by 2050 to meet decarbonisation targets.

Allison Thompson (pictured), national lettings managing director at Leaders Romans Group, believes that balancing tenant demand for sustainable homes with the financial realities faced by both tenants and landlords remains a significant challenge.

She adds: “Without government intervention or financial incentives, the adoption of these features will likely remain slow, despite growing interest.”

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