Millions of landlords could face rising costs and refinancing challenges unless they act quickly ahead of tougher EPC rules coming into force by 2030, according to specialist finance broker Pure Property Finance.
Under current proposals, all privately rented properties in England and Wales will need a minimum EPC rating of C by October 2030 under the government’s Minimum Energy Efficiency Standards framework.
At present, the legal minimum remains an E rating, but industry estimates suggest around 3.38 million rental properties still fall below the future threshold.
With the average cost of upgrading a property to EPC C estimated at almost £7,500, the warning comes as landlords face growing pressure from lenders, regulators and tenants around energy performance.
REFURBISHMENT DEMAND
The changes are likely to generate increasing demand for refurbishment funding and short-term finance solutions as landlords look to improve stock ahead of the deadline.
At the same time, lenders are already beginning to factor EPC performance more heavily into pricing, leverage and underwriting decisions.
Bob Jones (main picture), specialist property finance adviser at Pure Property Finance, says: “Most landlords still think of EPCs as a compliance footnote, something to sort out as we get closer to the deadline. However, that mindset is going to be far more expensive than a deadline with something as soon as possible.
“The rules on how properties are assessed have changed this year, and lenders are already factoring energy performance into the rates and loan-to-value ratios they offer.
“Landlords who act now will access better finance and avoid a very crowded, and very costly, upgrade when we get to 2028 and 2029.”
MULTI-METRIC FRAMEWORK
From 2026, new EPC assessments will move toward a broader multi-metric framework, incorporating insulation quality, heating efficiency, airtightness and smart technology readiness.
That shift could leave some landlords exposed where properties previously performed adequately under older scoring models.
Jones warns many investors remain unprepared for the scale of change approaching the sector.
FUNDING OPTIONS
He adds: “The numbers aren’t lying, unfortunately, millions of landlords are sitting on properties that may become increasingly difficult to mortgage, let and sell if nothing changes.
“What most people don’t realise is that there are funding options available right now, from government grants to specialist refurbishment finance, that can make this far more manageable than landlords fear.
For landlords and investors that have five or ten properties in their portfolio, this figure is going to be in the tens of thousands if not acted on quickly.”
Jones reckons landlords should begin by obtaining updated EPC assessments and exploring available funding routes now rather than waiting for demand – and costs – to surge closer to the deadline.
