Under the Green Deal, which is aimed at boosting the energy efficiency of private rental homes, a new minimum standard rating is expected.
Homes that do not meet the standard by 2018 will face a letting ban.
The government has yet to set the minimum standard, which will be measured on the home’s energy performance certificate (EPC).
According to figures from the British Property Federation (BPF) and the Energy Saving Trust, improving a typical F-rated property to an E rating could cost landlords between £100 and £660. Improvements to get the property to the highest rating could reach nearly £20,000.
The organisations have published a free guide for landlords, explaining how they can best plan and fund improvements to their properties to ensure they meet future regulations.
The calculations reveal:
• Improving a one-bed Victorian mid-terrace flat from F to C rating will cost £11,182. Going from F to E will cost just £659.
• To convert a two-bed 1970s flat from F to E could cost just £150, but F to C would be £14,927.
• A two-bed end-terrace Victorial house would cost £245 to take from an F to and E rating, but to get to a B rating would be £19,586.
• A more modern three-bed semi will cost only £100 to take it from F to E, but to improve to a B will cost £13,154.
Thomas Younespour, senior policy officer at the British Property Federation, explaiend the importance of EPC ratings for private rented properties is likely to increase in coming years.
“Not only have the rules been tightened over the provision and display of EPCs to prospective tenants and buyers, but regulations are planned for April 2018 to ban the letting of property with the poorest ratings - likely to mean F and G rated property,” he commented. Although the details of the regulation are not confirmed, there is clear intent that this kind of change will be part of the government’s plan to take action against climate change, Younespour said.
David Weatherall, housing strategy manager for the Energy Saving Trust, added that by making the most of financing for improving insulation and heating systems, landlords can make their properties more attractive to tenants, who are increasingly looking for homes that are cheap to heat.
Download the free report
