An estimated 2.9 million properties need improvements under the government’s proposal for rental properties to achieve a minimum EPC rating of C by 2030. This is estimated to cost £23.4 billion – an average of £8,074 per home.
This is evident from Rightmove’s third Greener Homes Report, which also shows that 50% of landlords are concerned about possible financial penalties if rental properties do not meet EPC C standards by 2030.
Rightmove says a green wealth gap has emerged: analysis of EPCs made over the past year shows that 50% of properties over £1m have significantly improved their rating since their previous EPC, compared to just 32% of the properties valued at less than £400,000.
The minimum proposed by the government EPC requirement for all rental properties by 2030 is now back on the table after a similar proposal was scrapped by the previous government.
Without financial help to speed up the upgrades, there are concerns that this move could reduce the availability of rental properties on the market if some landlords choose to sell rather than make the changes.
The latest data from Rightmove shows that the proportion of former rental properties coming onto the sales market is already at an all-time high, suggesting more landlords are selling their homes. 18% of homes for sale in August were previously on the rental market, compared to 8% in 2010.
Ahead of the Autumn Budget, Rightmove is asking the Government to consider support for landlords, which will in turn benefit renters, and more mass market help for homeowners of lower value homes.
Tim Bannister, property director at Rightmove, commented: “It is clear from our analysis that more needs to be done to help the mass market switch to greener homes, especially those living in homes worth less than £400,000.
Expensive green home upgrades
“In the rental market, we know from conversations with real estate agents and our research that landlords want to provide comfortable, energy-efficient homes, but green upgrades can be costly. For landlords of properties with a lower value, the financial return does not always justify the investment.
He concluded: “Now that the Government has confirmed that there will be a consultation on raising minimum energy efficiency standards in rental properties, we look forward to providing much-needed clarity, and ideally support, for landlords, which in turn will benefit tenants should benefit. medium to long term.”
Nathan Emerson, CEO of Propertymark, said: “More than ever before, there is greater awareness and ambition to improve the environmental performance of properties in the UK. However, the expected costs remain a major concern for many people.”
He added: “Ensuring that every rental property meets the required standards by 2030 will require targeted support from landlords to achieve this, and in some circumstances tenants may need to relocate temporarily if remedial work proves too complex while the improvements are underway.
“It will also require the necessary skills and supply chain to achieve this, and with a five-year window of opportunity the timeline is likely to be challenging.”