"Our new Labour Government has been quick out of the blocks with respect to rental market reform, with the Right to Rent bill widely focussed on the welfare of tenants, with little consideration for those who provide the rental accommodation we so sorely need"
- Sam Reynolds - Zero Deposit
The latest research by Zero Deposit estimates that it will cost the nation’s private landlords £21.455bn in order to bring their properties up to the proposed EPC C rating.
Ed Milliband has committed to consult on raising the minimum energy efficiency standard for private and social rented homes by 2030, which will require landlords to hold a minimum EPC rating of C versus the E currently required.
The research by Zero Deposit shows that 55% of all privately rented homes currently hold an EPC rating of D or below, with around 12% of these holding an E, F or G rating.
Yorkshire and the Humber is home to 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 high in this respect, with London home to the lowest proportion, where just 38% of all privately rented homes are rated D or below.
However, the research by Zero Deposit also shows that London landlords could face the highest costs in bringing their portfolios up to standard.
The average cost of bringing a rental property up to a band C EPC rating is estimated to be £8,000. With 2,681,905 homes requiring improvement across England, that’s an estimated cost to landlords of £21.455bn.
In London, this average cost of improvement climbs to £9,000 per property, meaning London landlords alone could face a cost of £3.798bn in order to bring their properties up to scratch by 2030.
Even in the North East, where this cost is at its lowest, landlords are facing a total of £666.6m in order to bring their homes up to an EPC C rating.
Sam Reynolds, CEO of Zero Deposit commented: “Our new Labour Government has been quick out of the blocks with respect to rental market reform, with the Right to Rent bill widely focussed on the welfare of tenants, with little consideration for those who provide the rental accommodation we so sorely need.
"The latest move to make an EPC rating of C mandatory by 2030 is much the same in this respect.
"Whilst it is, of course, a positive to improve the energy efficiency of rental homes within the PRS, the mandatory obligation to make these improvements is likely to cost private landlords billions.
"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.”
