New research highlights a significant energy efficiency concern in the UK housing market.
- More than 33% of homes for sale have an EPC rating below Band C, with some cities reaching 46%.
- Government targets mandate privately rented properties to achieve at least a Band C by 2030.
- Landlords face an average cost of £8,000 per property to meet these standards.
- The push for greener homes sparks debate over the financial impact on landlords and tenants.
The recent analysis conducted by epIMS has brought to light a concerning trend in the UK housing market: more than a third of properties currently listed for sale fall short of the Government’s energy efficiency targets. Specifically, these properties possess an Energy Performance Certificate (EPC) rating below Band C, a benchmark set to become mandatory for all privately rented properties by 2030. This situation is particularly acute in major cities, with data revealing that 46% of properties in some urban areas fail to meet this standard.
A closer examination of the regional data reveals stark differences across the UK. In Wales, a staggering 50.1% of the homes on the market do not reach the necessary EPC C rating. Scotland follows closely with 45.7%, while in England, 33.2% of properties fall short. Among English cities, Bradford emerges as having the most significant challenge, with 46.2% of its homes below the required band. Edinburgh, Brighton, Bristol, and Nottingham also report high levels of non-compliance, while even London, the city with the highest energy efficiency, sees 23.5% of its homes not meeting the minimum criteria.
The financial implications for landlords are considerable, with the average cost to upgrade a property to a Band C rating estimated at around £8,000. Craig Cooper, COO of epIMS, points out the double bind faced by landlords who have already navigated numerous regulatory changes impacting their financial returns. The additional requirement to upgrade properties’ energy efficiency could strain their resources further.
Despite the clear benefits of a greener rental sector, Cooper warns that the Government’s current ‘fabric first’ approach may not always align with cost-efficient strategies for landlords. He suggests that smaller, potentially more affordable updates, such as the installation of photovoltaic panels, could suffice to elevate properties to the required standards. This approach might prevent landlords from incurring unnecessary expenses and reduce potential rent hikes for tenants, which could destabilise the rental market.
The ambition for a greener housing sector confronts the reality of economic impacts on landlords and renters alike.
