An estimated 2.9 million properties need to be improved under the government’s proposal for rental homes to reach a minimum EPC rating of C by 2030. This is estimated to cost £23.4bn – an average of £8,074 per property.
This is according to Rightmove’s third Greener Homes Report which also found that 50% of landlords are concerned about potential financial penalties if rental properties fail to meet EPC C standards by 2030
Rightmove says a green wealth divide has emerged – analysing EPCs created over the past year found that 50% of £1m-plus properties had significantly improved their rating since their previous EPC, compared with only 32% of properties worth under £400,000.
The government’s proposed minimum 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 accelerate the upgrades, there are concerns the move could reduce the availability of rental properties in the market if some landlords choose to sell up rather than make the changes.
The latest data from Rightmove reveals that the proportion of former rental properties moving into the sales market is already at its highest point on record, suggesting more landlords are selling up. 18% of properties for sale in August were previously on the rental market, compared with 8% in 2010.
Ahead of the Autumn Budget, Rightmove is asking the government to consider support for landlords which in turn will benefit tenants, and more mass-market help for home-owners of lower value homes .
Rightmove’s director of property science Tim Bannister commented: “It’s clear from our analysis that more needs to be done to help the mass market transition to greener homes, especially those living in homes worth under £400,000.
Costly green home upgrades
“In the rental market, through discussions with agents and our research, we know landlords want to provide comfortable, energy-efficient homes, but green upgrades can be costly. For landlords of lower-value properties, the financial returns may not always justify the investment.
He concluded: “Now that the government has confirmed there will be a consultation on raising the minimum energy efficiency standards in rental homes, we look forward to seeing much needed clarity, and ideally support, for landlords, which in turn should benefit tenants over the medium to long term.”
Propertymark chief executive Nathan Emerson said: “More than ever before there is an increased awareness and ambition to improve the environment credentials of properties throughout the UK. However, anticipated costs remain a massive concern for many people.”
He added: “To ensure every single rental property meets required standards by 2030 will require targeted support for landlords to achieve, and in some circumstances may require tenants to temporarily move out should remedial work prove too complex to achieve while improvements are ongoing.
“It will also require the necessary skill sets and supply chain to make it happen, and with a five-year window of opportunity, the timeline will likely be challenging.”
