There are 2.9 million houses that will require £23.4bn in improvements to meet the government’s energy performance certificate (EPC) standards by 2030, according to Rightmove.
New analysis from the property portal found that an average of £8,074 will have to be spent on rental homes to upgrade them to a C rating by EPC standards.
Energy secretary Ed Miliband said he would be consulting on raising the minimum standard for private and social rented homes by 2030, which would require landlords to hold a minimum EPC rating of C versus the E currently required.
More than half of rental homes have an EPC rating of D and below, meaning that landlords will be shelling out a lot of money to upgrade the homes.
“It’s clear from our analysis that more needs to be done to help the mass market transition to greener homes, especially those living in homes worth under £400,000,” said Tim Bannister, director of property science at Rightmove.
Labour has pledged to invest £6.6bn to upgrade homes with better insulation and low-carbon heating like heat pumps, but Rightmove also suggested bringing in further schemes, like a package of support to upgrade houses worrth under £400,000.
This is because half of all homes worth more than £1m have significantly improved their EPC rating, compared to just 32 per cent of properties worth under £400,000.
In addition, Rightmove pushed last year to introduce stamp duty rebates if a new buyer makes green improvements in the first few years of purchase, and continues to advocate for the policy in the upcoming budget.
However, upgrading the houses shouldn’t just be to meet the government’s standards: Rightmove found one in five renters think stricter energy efficiency regulations should be the top priority for the government.
Meanwhile, the average energy bill for a three-bedroom semi-detached house with an EPC rating of F is £4,312 per year, Rightmove said, compared with £1,681 for the same house with an EPC rating of C.
“It’s clear to us that consumers’ interest in greener options continue to steadily rise,” added Rightmove chief executive Johan Svanstrom.
Nathan Emerson, chief executive at Propertymark, reacted to the figures by casting doubt on whether it is achievable
“More than ever before there is an increased awareness and ambition to improve the environment credentials of properties throughout the UK.”
However, anticipated costs remain a massive concern for many people. To ensure every single rental property meets required standards by 2030 will require targeted support for landlords to achieve, and in some circumstances may require tenants to temporarily move out should remedial work prove too complex to achieve while improvements are ongoing.”
It will also require the necessary skill sets and supply chain to make it happen, and with a five-year window of opportunity, the timeline will likely be challenging.”