Landlords face an ongoing buy-to-let investment challenge as a new report reveals that a third of all homes for sale in Britian have an EPC rating below a C.

Energy efficiency platform epIMS’s analysis of more than one million listings on Rightmove shows that 33% of potential BTL investment opportunities don’t meet the standard, which will be a legal requirement in 2030.

It’s estimated that the average cost of bringing a rental property up to standard in England currently stands at £8,000 - a further cost that could dent buy-to-let investor appetites.

In Wales, the number failing to meet the C target stands at 50% while in Scotland it’s 45%. England is home to the most compliant investment opportunities, although 33% of current listings still fail to meet the proposed minimum, with an EPC rating of D or worse.

The same analysis across 15 major cities shows that Bradford is home to the least energy efficient investment opportunities with 46% of all homes currently listed across the city having an EPC rating below a C.

Cost effective?

COO of epIMS, Craig Cooper, says a greener rental sector is a positive, however, the government’s fabric first approach to energy efficiency isn’t always the most cost-effective route for landlords. “Small changes such as installing PV panels are far more affordable than internal or external wall installation but could be just the strategy needed to achieve the C threshold,” he adds.

“This mitigates the need for landlords to spend more than they have to, which in turn reduces the chance that these costs will be passed onto tenants in the form of rental increases, leading to a far less disruptive landscape for renters themselves.”