Landlords across England face a refurbishment bill of almost £20bn to bring private rented homes up to an EPC C rating by 2030, according to new analysis from Octane Capital.

The government recently pushed back the deadline for all private rental stock to meet the minimum EPC C standard from 2028 to 2030.

However, Octane Capital said the extension does little to reduce the scale of the work required, with refurbishment finance set to remain central to delivery.

The lender analysed government data on the proportion of private rented dwellings currently rated below Band C. This was applied to private rented sector stock volumes to estimate the number of homes requiring improvement, before using average upgrade costs to calculate the total level of investment needed.

Across England, 50.1% of privately rented homes are currently below the EPC C threshold, equating to an estimated 2,479,757 properties in need of improvement.

Based on a median upgrade cost of £8,017 per property, Octane Capital estimated that total refurbishment investment of £19.9bn will be required to bring the sector up to standard by 2030.

REGIONAL BREAKDOWN

London is expected to account for the largest share of this spending, with total improvement costs across the capital estimated at £4.3bn.

The North West and South East also face significant investment requirements, with refurbishment costs of £2.3bn and £2.2bn respectively.

At the other end of the scale, the North East is forecast to require the lowest overall spend, with total improvement costs estimated at £503m.

Octane Capital said older housing stock remains particularly challenging when it comes to achieving higher EPC ratings, often due to poor insulation, inefficient heating systems, single-glazed windows and outdated lighting.

Many of these issues can be addressed through targeted works, including loft and cavity wall insulation, boiler upgrades, improved glazing, smart heating controls and the installation of LED lighting.

With the scale of improvement now clearer, Octane Capital argued that refurbishment finance will play a critical role in enabling landlords to carry out the required works at pace, particularly where traditional funding routes prove slow or restrictive.

Jonathan Samuels, chief executive of Octane Capital, said: “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.”