Nearly £20bn of refurbishment finance will be required to bring England’s private rented homes up to the Government’s minimum EPC C standard by 2030 according to new analysis from Octane Capital.
Although the Government has extended the compliance deadline for the private rented sector from 2028 to 2030, the scale of work required remains significant, with refurbishment and short-term finance expected to play a critical role in enabling landlords to complete upgrades within the required timeframe.
Octane Capital analysed Government data on the proportion of privately rented homes currently rated below EPC Band C and applied this to overall PRS stock levels across England. The firm then assessed the typical cost of works needed to improve EPC performance to Band C.
The research found that 50.1% of privately rented homes in England currently fall below the EPC C threshold, equating to approximately 2,479,757 properties requiring improvement.
Based on a median upgrade cost of £8,017 per property, the total investment required across the private rented sector stands at £19.9bn.
CAPITAL CRISIS
London is expected to account for the largest share of refurbishment spending, with an estimated £4.3bn required to bring rental stock up to EPC C.
The North West and South East follow, with upgrade costs estimated at £2.3bn and £2.2bn respectively. The North East is forecast to require the smallest overall investment, at £503m.
Octane Capital said older housing stock presents the greatest challenge, often requiring a combination of insulation upgrades, heating system replacements and improvements to glazing and controls. While some properties may only need targeted works, others will require more extensive refurbishment programmes.
Common measures to improve EPC performance include topping up loft insulation, installing cavity wall insulation where appropriate, upgrading to modern condensing boilers, fitting double or secondary glazing, adding smart heating controls, and replacing outdated lighting with LED alternatives.
With more than half of England’s private rented homes requiring improvement, Octane Capital said refurbishment finance will be essential in helping landlords fund works quickly and efficiently, particularly where time-sensitive upgrades are needed to maintain lettability and regulatory compliance.
FIT FOR PURPOSE
Jonathan Samuels, CEO of Octane Capital, says: “While the Government has extended the deadline for the private rented sector to reach EPC C, this research shows that the scale of refurbishment required remains substantial, with close to £20bn worth of improvements needed across England alone.
“For many landlords, meeting the EPC C requirement won’t just come down to recognising what needs to be done, but having the ability to fund the work and deliver it efficiently, particularly where properties require more extensive upgrades.
“This is why refurbishment finance will continue to play such an important role over the coming years, helping landlords access the speed and flexibility required to improve stock, manage costs, and ensure properties remain compliant and fit for purpose ahead of the 2030 deadline.”
