An estimated £19.9bn of investment will be needed to bring England’s private rented homes up to an EPC C rating by 2030, according to analysis by Octane Capital.
The study used government data on the proportion of privately rented dwellings below Band C and combined this with sector-wide housing stock figures and the average cost of required improvements to calculate the total investment needed.
The research indicates that 50.1% of privately rented homes in England are currently below the government’s minimum EPC C standard, representing around 2.48 million properties needing improvement.
Based on a median upgrade cost of £8,017 per home, the total investment required to bring the sector up to standard by 2030 is estimated at £19.9bn.
London faces the highest total cost, at approximately £4.3bn, followed by the North West (£2.3bn) and South East (£2.2bn). The North East requires the smallest overall investment, at around £503m.
Older homes often have common issues that make achieving higher EPC ratings difficult, including inadequate insulation, inefficient boilers, single-glazed windows, lack of thermostatic controls, and outdated lighting. These can be addressed through targeted improvements such as loft or wall insulation, boiler replacement, double glazing, smart heating controls, and LED lighting.
Given the scale of improvements needed, access to refurbishment finance is likely to be important for enabling landlords to fund and complete upgrades efficiently.
Jonathan Samuels, CEO of Octane Capital, commented: “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.”