The Intermediary – September 2026 - Flipbook - Page 36
BUY-TO-LET
In focus
EPC upgrades are
not one-size-fits-all
R
ecent headlines
suggesting landlords
could face bills of
tens of thousands
of pounds to bring
properties up to
Energy Performance Certificate (EPC)
Band C have put the potential cost of
future energy efficiency requirements
firmly back on the agenda.
These headlines are likely to prompt
questions from landlord clients about
what future EPC requirements could
mean for their portfolios, and whether
they need to build additional energy
efficiency improvements into their
maintenance budgets.
With the Government intending
to require privately rented homes in
England and Wales to meet EPC C
by October 2030, understanding the
likely cost of compliance is becoming
increasingly important.
A single figure cannot reflect the
reality across a diverse rental market.
The cost of improving a property’s
EPC rating depends on a range of
factors, including its age, condition,
construction type and any energy
efficiency upgrades that have already
been completed.
In-house research conducted by
Rely’s parent company, OSB Group,
into around 10,000 properties found
that nearly half could be improved
to EPC C for £3,500 or less, with 17%
requiring less than £750 of work.
Fewer than one in four fell into the
highest-cost category, where costs
exceeded £10,000.
Some properties will require
investment at that level, particularly
those that are older and less energy
efficient. However, the findings
suggest these are the exception rather
than the rule.
Proposed EPC requirements also
include a £10,000 cost cap before
exemptions may apply, meaning the
cost of works is only one part of the
conversation brokers may need to have
with landlord clients.
34
The Intermediary | September 2026
Understanding what exemptions
are available and how they may apply
could help brokers provide more
informed guidance to landlord clients.
One property to the next
The challenge with relying on
averages is that they can conceal wide
variations between properties.
The median cost identified in the
OSB Group research was £3,500,
considerably lower than the average
cost, highlighting the extent to which
upgrade costs can vary significantly
between properties.
A modern flat that already benefits
from double-glazing, insulation
and an efficient heating system will
have very different requirements to
an older property that has seen lile
investment in energy efficiency. Some
landlords may need only modest
improvements to reach EPC C, while
others could face much larger bills.
Average figures can therefore
become misleading, as a relatively
small number of expensive retrofit
projects can skew the overall picture
and create the impression that
all properties require significant
investment, when that is not the case.
In many cases, the route to a higher
EPC rating does not require major
refurbishment. Measures such as
lo insulation, upgraded windows,
draught-proofing, energy-efficient
lighting, and heating controls can
make a difference to EPC performance
while also helping tenants reduce their
energy bills.
Many properties are already
relatively close to EPC C, and can
reach the required standard through
targeted improvements rather than
major retrofit projects. For brokers,
that creates an opportunity to move
the conversation away from headline
costs and towards the specific
requirements of individual properties.
Not every property falls into
that category – older housing stock
oen presents a greater challenge.
MICHAEL DAVEY
is group head of
sustainability at Rely
Properties built before modern
energy efficiency standards were
introduced are more likely to have
poor insulation, less efficient heating
systems and other features that
make improvements more complex
and expensive.
Higher upgrade costs are typically
associated with properties in this
category. These landlords may need a
longer-term plan for improvements,
while those with newer or partially
upgraded properties could find
the route to EPC C much more
straightforward.
For landlords facing relatively
modest upgrade costs, the priority
may simply be understanding
what work is needed and when to
complete it. Where more extensive
improvements are required, brokers
can help clients explore funding
options and consider how EPC
upgrades fit into wider portfolio plans
and long-term investment objectives.
With energy performance likely to
remain an important consideration
across buy-to-let, understanding likely
upgrade requirements is becoming an
increasingly valuable part of brokers’
conversations with clients.
The key message is that EPC costs
are not one-size-fits-all. While some
properties will require significant
investment, many can reach EPC
C for far less than recent reports
might suggest.
For brokers, the role is not to
focus on a single cost estimate,
but to help landlords assess the
requirements of their individual
properties. Understanding the likely
scope of works, the cost involved
and the available funding options
will help landlords make informed
decisions long before any future EPC
requirements come into force. ●
