Landlords across the UK are under increasing pressure to comply with the government’s Energy Performance Certificate (EPC) regulations, set to take effect by 2030. With all rental properties required to achieve a minimum Band C rating, many landlords will need to make costly upgrades to meet the new energy efficiency standards. Failure to comply with these regulations could result in significant penalties or restrictions on renting out properties, further heightening concerns within the industry.
Financial Strain on Landlords
At present, most private rental properties in the UK have an EPC rating of Band D. This means that a significant proportion of landlords must undertake extensive and expensive improvements to comply with the upcoming rules. The financial burden is particularly concerning for those who own older properties, such as Victorian terraces and pre-war homes, which require more substantial modifications. Unlike newer builds, which are designed with modern energy efficiency standards in mind, older homes often need fundamental structural improvements to achieve the required EPC rating.
A report from the Department for Business, Energy & Industrial Strategy (BEIS) has estimated that upgrading a typical Band D property to Band C could cost between £5,000 and £10,000. For landlords with multiple properties, the expenses could quickly escalate, putting considerable financial pressure on property owners. Given that rental yields have already been affected by rising mortgage rates and inflation, many landlords are struggling to justify the costs of these upgrades without additional financial support.
Limited Financial Support and Complex Processes
While some assistance is available, such as the Boiler Upgrade Scheme, landlords argue that existing financial support is insufficient to cover the full cost of necessary improvements. Additionally, the application process for these grants can be complex and time-consuming, particularly for smaller landlords with limited resources. Some landlords have reported delays in grant approvals, while others find that eligibility criteria make it difficult for them to access available funding.
Landlords who own historic properties face even greater obstacles. Retrofitting period homes to meet modern energy efficiency standards often involves major renovations, including better insulation, double glazing, and heating system upgrades. In some cases, these efforts are further complicated by planning restrictions, a shortage of skilled tradespeople, and ongoing supply chain disruptions. Additionally, landlords with properties in conservation areas may face stricter regulations, making it even more difficult to implement necessary changes.
Industry Experts Call for Flexible Solutions
Jason Harris-Cohen, Managing Director of LandlordBuyer, warns that the 2030 deadline poses serious challenges for landlords. “While improving energy efficiency is a step in the right direction for reducing carbon emissions, the financial and logistical difficulties of upgrading older properties cannot be ignored. Many landlords may struggle to meet the deadline without additional government support.”
Rather than enforcing a strict 2030 deadline, Harris-Cohen suggests a more flexible approach. “A phased transition would allow landlords to gradually make improvements, starting with properties that have the lowest EPC ratings. Additionally, more substantial financial incentives, such as tax relief or higher grant allocations, could encourage landlords to invest in energy-efficient upgrades without facing overwhelming financial pressure.”
Calls for Clearer Guidance
Another key issue is the lack of clear guidance from the government. The UK’s private rental market includes a diverse range of properties, from modern flats to centuries-old houses. A one-size-fits-all policy is unlikely to be effective. Landlords are calling for more tailored advice on how to improve their properties efficiently and cost-effectively. Some have suggested that the government should introduce a dedicated advisory service to help landlords navigate the process, providing expert recommendations on cost-effective and practical solutions.
As the 2030 deadline approaches, property owners are urging the government to reconsider the rollout of EPC regulations. Increased financial aid, phased compliance timelines, and clearer guidance could help landlords meet the new standards without undue hardship, while still contributing to the UK’s broader sustainability goals.
