New research from Hamptons suggests landlords are likely to fall short of the government’s 2030 EPC deadline. According to Hamptons, 2042 is when they expect the target to be hit, 12 years after the deadline.
Miatta Fahnbulleh, Minister for Energy Security and Net Zero, has confirmed that the Government will require rental properties to have a minimum C grade by 2030.
The Slow March to Energy Efficiency
Their research also finds that at the current pace of energy efficiency improvements, it will take an extra 18 years for all privately rented homes in England and Wales to reach the EPC A-C rating. At the 2016 rate, it would have taken 89 years to meet these standards, so it has accelerated compared to previous years. Improvements are partly due to landlords proactively upgrading their properties, despite uncertain and shifting regulations.
The Financial and Logistical Hurdles
Aneisha Beveridge, head of research at Hamptons, highlights the issues landlords face in meeting these evolving standards. Changes to energy efficiency rules have made it challenging for landlords to plan and budget for upgrades, which can be expensive.
Despite these challenges, many landlords continue to invest in energy efficiency, hoping to improve their EPC rating. However, Beveridge warns to meet the 2030 target, upgrades will need to speed up, essentially squeezing 30 years of improvements into the next five.
Progress and Projections
Hamptons data shows that 39% of EPC assessments for rental properties in 2024 have had an improved rating. Many have moved from a D to C rating. However, to meet the 2030 target, approximately 340,000 rental homes will need to be upgraded each year—a rate three times higher than the current pace.
According to our data, 60% of all privately rented properties receiving an EPC certificate in 2024, achieved a rating of C or above. Our data also shows that 54% of owner-occupied properties received a C rating or higher. Progress has been made. Increased awareness amongst landlords has helped, as has the importance placed on achieving higher EPC ratings, not only to comply with regulations but also to enhance the marketability and value of rental properties.
The Path Forward
As the 2030 deadline approaches, it’s crucial landlords receive clear and consistent guidance from the government. Adequate time and resources are essential for landlords to meet these targets without compromising their financial stability.
The research from Hamptons and our own data shows the challenges ahead for both landlords and policymakers. While achieving an EPC A-C rating for all rental properties by 2030 is possible, it will need concentrated effort and coordination.
