Government EPC C Target Drives Major Refurbishment Challenge

The UK government has set a mandatory target requiring all private rented sector (PRS) properties to achieve an Energy Performance Certificate (EPC) rating of C by 2030. According to new data from Octane Capital, this will necessitate improvements to more than two million PRS homes across England. The total cost of these upgrades is estimated at nearly £20 billion (£19.9bn), underscoring the scale of investment landlords must prepare for over the coming years.

Regional Variations in Refurbishment Costs

Octane Capital’s research highlights significant regional disparities in refurbishment expenditure. London faces the highest total cost, with £4.3 billion required to bring its private rental stock up to EPC C standards. The North-West and South-East regions also confront substantial bills, estimated at £2.3 billion and £2.2 billion respectively. These figures reflect the varying age, condition, and energy efficiency of rental properties across England.

Refurbishment Finance: A Vital Tool for Landlords

Jonathan Samuels, CEO of Octane Capital, emphasises the importance of refurbishment finance in meeting these targets. He states:
“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 (£19.9bn) 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.”

Older Properties Face the Greatest Challenges

Many older PRS properties will struggle to meet EPC C without significant upgrades. Common improvement measures include topping up loft insulation, installing modern condensing boilers, and fitting double or secondary glazing. These relatively straightforward interventions can help landlords achieve a stronger EPC rating, but more extensive refurbishment may be necessary for some properties.

Refurbishment Loans Support Faster Upgrades

Refurbishment finance, typically in the form of short-term loans tailored for renovation projects, is a popular funding option among landlords and property investors. These loans enable faster completion of improvement works, allowing properties to be brought to market sooner and generate rental or sale income more quickly. Octane Capital reports that the average 12-month refurbishment loan currently stands at £12,612, slightly down from £12,834 a year ago, based on an average renovation cost of £79,306.

What This Means for UK Landlords

Landlords must prepare for significant expenditure to meet the EPC C deadline, with refurbishment finance likely to be essential in managing costs and timelines. Understanding the scale of investment required and planning for funding options will be crucial to ensuring compliance and maintaining the value and rental appeal of properties. Early action can help landlords avoid last-minute pressures as the 2030 deadline approaches.

Suggested internal link anchors

• private rented sector
• EPC C targets
• refurbishment finance
• energy efficiency improvements
• loft insulation
• condensing boilers
• double glazing
• rental property refurbishment
• landlord compliance
• short-term refurbishment loans
• 2030 EPC deadline

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/